Moody's Investors Service has identified 10 states whose overwhelming public pension burden is even worse than previously thought.
The findings are the result of new methodology that Moody's says achieves greater transparency and comparability. Moody's ranks a state's adjusted net pension liability by calculating the ratio of ANPL as a percentage of governmental revenues.
The 10 states in the most trouble are (alphabetically): Colorado, Connecticut, Hawaii, Illinois, Kentucky, Louisiana, Maryland, Massachusetts, New Jersey and Pennsylvania.
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Over the past three years, Moody's has downgraded a number of these states for practices such as taking "pension holidays," deliberately ignoring actuarially required contributions in order to balance budgets.
"The states that have the largest relative pension liabilities have at least one thing in common," Moody's said in a report, "a history of contributing less to their pension plans than the actuarially required contributions."
By comparison, the ANPL ratios of the three states in the best shape are Nebraska (7 percent), Wisconsin (14 percent), and Idaho (15 percent).
Based on ANPL as a percentage of revenues, here are the 10 states in the most trouble, starting with the very worst (figures are in billions):
Illinois
ANPL as % of state revenues: 241%
ANPL (in billions): $139,968,296
ANPL as % of PI: 24%
ANPL as % of GDP: 20%
Per capita income: $10,340
Connecticut
ANPL as % of state revenues: 190%
ANPL: $41,587,093
ANPL as % of PI: 20%
ANPL as % of GDP: 18%
Per capita income: $11,595
Kentucky
ANPL: $28,619,279
ANPL as % of state revenues: 141%
ANPL as % of PI: 19%
ANPL as % of GDP: 17%
Per capita income: $6,554
ANPL as % of state revenues: 137%
ANPL: $63,219,012
ANPL as % of PI: 14%
ANPL as % of GDP: 13%
Per capita income: $7,156
Hawaii
ANPL as % of state revenues: 133%
ANPL: $10,919,157
ANPL as % of PI: 19%
ANPL as % of GDP: 16%
Per capita income: $7,723
Louisiana
ANPL as % of state revenues: 130%
ANPL: $33,376,268
ANPL as % of PI: 19%
ANPL as % of GDP: 14%
Per capita income: $7,296
Colorado
ANPL: $20,338,160
ANPL as % of PI: 9%
ANPL as % of GDP: 8%
Per capita income: $3,975
Pennsylvania
ANPL as % of state revenues: 105%
ANPL: $63,532,940
ANPL as % of PI: 12%
ANPL as % of GDP: 11%
Per capita income: $4,985
Massachusetts
ANPL as % of state revenues: 100%
ANPL: $44,732,443
ANPL as % of PI: 13%
ANPL as % of GDP: 11%
Per capita income: $6,770
Maryland
ANPL as % of state revenues: 100%
ANPL: $28,660,114
ANPL as % of PI: 10%
ANPL as % of GDP: 10%
Per capita income: $4,908
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