Report: Kentucky among states least prepared to weather a recession

0

JEFFERSON CITY, Mo. (AP) – A new report finds that many states are in better shape than ever to weather a potential recession.

The report released Monday by Moody’s Analytics says 28 states have enough cash on hand to survive a moderate recession without having to resort to spending cuts or tax hikes. An additional 12 states are only slightly short, meaning they also could likely avoid taking drastic financial measures.

- Advertisement -

Moody’s Analytics based its conclusions on the amount of savings that would be necessary to cover a likely decline in state tax collections and increase in state Medicaid expenditures if a recession were to occur. It is not forecasting a recession in 2020.

The report ranked Louisiana, Illinois and Kentucky as the states least prepared to handle a downturn in the economy.