Kentucky
Another state that’s extremely vulnerable in the face of a recession is Kentucky, with only 3 percent reserves of the state’s general fund. The Bluegrass State’s pension program is the worst-funded program in the United States, receiving just 16 percent funding. The funding problems existed well before the pandemic and the recession will only add to the burdens that the state is facing.
See also 14 States Where Your Pension Won’t Get Taxed.
Florida
By the looks of it, Florida is doing better in the reserve department, 8 percent reserves of the state’s general fund. However, a closer look will reveal that the Sunshine State is much more exposed and vulnerable to an economic downturn than other states. That’s because Florida’s revenues come mostly from housing construction and tourism, a sector that has taken one of the hardest hits since the start of the pandemic and, which is not showing any signs of recovering anytime soon, not with the new COVID strains emerging and travel and distancing restrictions still in force.
Unfortunately, Florida is also among these 2 States that Have the Worst Outbreaks of the New U.K Strain.
