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11 States Most Unprepared for the Next Recession

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Most state budgets are in better shape now than they were before the last recession, thanks to steady growth in employment and the resulting rise in tax revenue. Many states have been socking away cash in rainy-day funds for the next recession, and about half of all states have enough on hand to tide them over in a typical downturn, such as the 2001 tech bust.

But many states will struggle when things go south for the economy, even in a moderate recession, which will surely happen eventually. The most vulnerable states have little savings, or they stand to see revenues fall steeply because they depend heavily on either income taxes or levies on energy production to fund their budgets.


These 11 states would have to either raise taxes or cut spending by more than 5% in the event of a typical recession. Is your state on the list? Take a look.

SEE ALSO: How All 50 States Tax Retirees

Reserve, revenue and budget data are from the National Association of State Budget Officers. Recession impact on state revenues calculated by Moody's Analytics.


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