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On the basis of its fiscal solvency in five separate categories, Indiana ranks 17th among the US states and Puerto Rico for its fiscal health. Indiana has between 1.41 and 2.56 times the cash needed to cover short-term liabilities. Revenues exceed expenses by 4 percent, producing a surplus of $180 per capita. Net assets are 22 percent of total assets, and total liabilities are 10 percent of total assets. Total debt is $1.11 billion. Unfunded pension liabilities are $43.06 billion on a guaranteed-to-be-paid basis, and other postemployment benefits (OPEB) are $289 million. These three items are equal to 16 percent of total state personal income.

Key Terms

  • Cash solvency measures whether a state has enough cash to cover its short-term bills, which include accounts payable, vouchers, warrants, and short-term debt. (Indiana ranks 29th.)
  • Budget solvency measures whether a state can cover its fiscal year spending using current revenues. Did it run a shortfall during the year? (Indiana ranks 26th.)
  • Long-run solvency measures whether a state has a hedge against large long-term liabilities. Are enough assets available to cushion the state from potential shocks or long-term fiscal risks? (Indiana ranks 3rd.)
  • Service-level solvency measures how high taxes, revenues, and spending are when compared to state personal income. Do states have enough “fiscal slack”? If spending commitments demand more revenues, are states in a good position to increase taxes without harming the economy? Is spending high or low relative to the tax base? (Indiana ranks 23rd.)
  • Trust fund solvency measures how much debt a state has. How large are unfunded pension liabilities, OPEB liabilities, and state debt compared to the state personal income? (Indiana ranks 5th.) 

For a complete explanation of the methodology used to calculate Indiana's fiscal health rankings, download the full paper and the dataset at