Study ranks Iowa 25th for state fiscal health

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The state of Iowa ranks 25th among the U.S states and Puerto Rico for its fiscal health, according to a new study from George Mason University’s Mercatus Center. The study ranks each state’s financial health based on short- and long-term debt and other key fiscal obligations, such as unfunded pensions and health care benefits. The state’s revenues exceed expenses by 4 percent, producing a surplus of $250 per capita. On a cash basis, Iowa has between 1.5 and 2.5 times the cash needed to cover short-term liabilities. Total debt is $3.68 billion. Unfunded pension liabilities are $36.10 billion on a guaranteed-to-be-paid basis, and other postemployment benefits add $233 million in unfunded liabilities. Iowa moved down from a ranking of 18th last year, based on less favorable cash solvency, the report said.