Oklahoma
Similar to Louisiana, Oklahoma’s also heavily dependent on oil and gas revenues, having the fifth-highest share of mining in its economy in the country, according to the U.S. Bureau of Economic Analysis. However, the dramatic drop of oil prices has caused a dramatic reduction of drilling activities, with only 26 drilling rigs currently operating in Oklahoma, compared to over 100 scarcely a year ago.
The states with a fiscal dependence and the greatest share of GDP from the production of oil, natural gas, and coal need considerable reserves to get them through economic ups and downs. Unfortunately, Oklahoma’s reserves are insufficient for such a challenging task.
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New Jersey
New Jersey’s fiscal reserves total 3 percent of the state’s general fund and increasing such reserves will not be easy, not with the severe pension funding shortfalls. In addition, The Garden State is in deep debt, paying one of the greatest debt burdens in the country after California, New York and Illinois.
“New Jersey is the fourth-highest debt state in the nation, just looking at bonded debt per capita,” said Baye Larsen, vice president at Moody’s. The future economic downturn caused by the coronavirus pandemic will only aggravate the state’s financial situation.
