Pennsylvania
Pennsylvania isn’t in the safest situation, with the lowest reserve balances – 1.5% of the state’s general fund. The Keystone State has a huge problem with the funding of public pensions, which will only make the task of increasing the fiscal reserves even more complicated.
More than that, Medicaid spending in Pennsylvania increased by almost 35 percent in recent years, making it one of the costliest in the country, per person as well as per the percentage of the total state government expenditures (36%). The recession will make matters even worse.
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Arkansas
Arkansas has long been struggling with its reserve balances. The Natural State started working on building its fiscal reserves in 2016 but it hasn’t managed to increase it to more than 3 percent of the state’s general fund. To be able to navigate the negative effects of the recession, Arkansas will have to cobble up revenues from various sources, a task which will surely not be easy.
Read also: 26 States That Do Not Tax Your Social Security Benefits.
