In George Mason University’s Mercatus Center study, North Carolina moved up to 15th from 21st in the overall ranking for the fiscal health of the States. This is largely attributed to the improvement of both our immediate cash solvency and long run solvency. Cash solvency refers to whether a state has enough cash to cover its short-term costs such as short-term debt, warrants, and accounts payable. North Carolina has between 1.28 and 2.46 times the amount of money needed to cover its short term costs. This differs from long run solvency, which refers to a state’s ability to handle long term fiscal risks. Since 2013, North Carolina has decreased long term liabilities from 22% to 17%, putting NC’s per capita long term liabilities at more than four times lower than the national average.
This is just more evidence that the conservative, common sense reforms that our state has implemented over the past few years have us on the path to prosperity. Lower tax burdens, sensible spending, and prudent savings are working for North Carolina families today and will continue to do so for generations to come.