Conning: CT ranks 34th in credit quality
Connecticut ranked 34th in a Hartford-based investment management firm’s State of the States report, which was released last week.
The firm, Conning, ranked states based on their credit quality by analyzing 13 economic indicators. It maintained a stable outlook on state credit quality across the U.S., even as the country experienced the highest inflation in decades.
The report shows Connecticut had the highest debt per capita, but the third highest tax revenue growth. Also, it was among three states – Hawaii and Massachusetts are the others – which had an unemployment rate a full percentage point above their pre-pandemic level.
Population growth trends showed that people are moving away from city centers, often to rural and suburban areas. Connecticut and Vermont are the only states that moved up the most in terms of population growth.
Conning found that states are benefiting from strong tax collections and federal stimulus money; however, surplus spending could lower reserves and reduce recession preparedness.
The economic rebound affected states differently. Connecticut, with high per capita personal income, benefited comparatively less from federal pandemic aid than states with lower personal income, which suffered greater losses but received more assistance.
The 2022 findings were measured in real terms to eliminate inflation as a variable.
Overall, tax revenue in 2021 increased 22% from 2020, according to the report. Alaska had the highest tax revenue growth, largely due to the recovery in oil prices. States with no personal income tax, such as Florida, Texas and Washington, experienced higher employment numbers, the report says.
Tennessee and New Hampshire saw the strongest growth in GDP; Massachusetts and New York maintained their top positions.
View the full report at
https://www.conning.com/-/media/marketingsite/documents/state-of-the-states/state-of-the-states---2022.pdf.
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