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New Hampshire was the most “service-level solvent” state in fiscal year 2014, meaning it had the most “fiscal slack” to raise taxes or increase spending in an economic downturn, according to a study by the Mercatus Center at George Mason University. The state earned its No. 1 ranking and a “service-level solvency index” score of 7.24 as a result of its low levels of taxes, revenues and expenditures compared to personal income. Bottom-ranked Alaska had higher values in each of those categories, earning it an index score of -5.61.
Source: Mercatus Center at George Mason University
Ranked highest in service-level solvency: New Hampshire, Nevada, Florida, South Dakota, Virginia
Ranked lowest: Alaska, North Dakota, New Mexico, Vermont, Delaware