WalletHub: Louisiana needs the most financial help from COVID-19

Stacey Tinsley | BIZ. Magazine

Personal-finance website WalletHub released a report Monday that shows Louisiana at the top of the list of States That Need the Most Financial Help Due to COVID-19.

To identify the top 10 states in need of the most financial help due to the coronavirus crisis, WalletHub compared the 50 states across 18 key metrics, including rainy day funds per capita, state and local debt per capita,

Financial Need in Louisiana (1=Most, 25=Avg.)

  • 9th – State Rainy-Day Funds per Capita
  • 14th – Unfunded Pension Liabilities as Share of GSP
  • 26th – State and Local Debt per Capita
  • 6th – Unemployment Claims Increase Since the Beginning of the COVID-19 Pandemic
  • 12th – GDP Generated by Highly Affected Industries as Share of Total State GDP
  • 3rd – State Preparedness for Severe Recession

The 10 states that need the most financial help, according to the analysis:

Louisiana, Kentucky, Florida, New Hampshire, New York, Illinois, New Jersey, Nevada, Michigan and South Carolina.

Why does Louisiana need the most financial help during the pandemic?

“Louisiana needs the most financial help during the coronavirus pandemic in part because the state’s rainy-day fund can’t sustain government operations for more than a few weeks, which leaves it unprepared to weather a budget crisis,” said Jill Gonzalez, WalletHub analyst.

“Louisiana has seen the fifth-lowest rebound in tax revenues since the Great Recession, and it is one of only six states where tax revenue has never exceeded pre-recession levels. Since Louisiana doesn’t have an adequate rainy-day fund or extra tax revenue to fall back on, it needs more support from the federal government.”

For the full report, please visit:
https://wallethub.com/edu/states-that-need-most-financial-help-due-to-covid-19/74485/