Study Shows Tennessee’s Debt Ratio To Be Lowest In The Nation

Tuesday, July 23, 2013

One of the country’s top bond rating agencies analyzed debt ratios in all 50 states and concluded that Tennessee’s ratio is the lowest. The study, conducted by New York-based Fitch Ratings, uses a metric that is calculated by combining the state’s net tax-supported debt and unfunded pension liabilities then measuring them against the state’s personal income level.

  Tennessee’s ratio of debt and pension liabilities to personal income was 1.8 percent. No other state had a ratio below 2.2 percent and four states had ratios above 20 percent.

 

Fitch plans to use the debt ratios as a factor in evaluating states’ credit ratings. Favorable ratings from Fitch and the other major rating agencies can translate to lower interest rates when the state borrows money, resulting in savings for taxpayers.

 

Fitch released a similar report last year, in which Tennessee also had the lowest debt ratio.

 

“There’s a simple reason why our state’s debt rate is so low – we borrow a small amount of money relative to the size of our government and we repay it ­ quickly,” Comptroller Justin P. Wilson said. “That’s a credit to our state legislators, who have managed our finances very wisely. They have helped keep the burden that future generations of Tennesseans will have to repay low.”

 

“Legislators also deserve credit for adequately funding our state pension plan,” Treasurer David H. Lillard, Jr. added. “Independent actuaries determine how much money we need to put into the pension plan each year to meet all of our obligations. Unlike some other states, our legislators have a history of following the actuarial recommendations. Also, the team that manages the pension fund’s money has done an excellent job of maximizing investment returns during difficult economic times.”


PA Group USA Named To Accounting Today’s VAR 100 List For 2014

PA Group USA has been named by Accounting Today as one of the top 100 Value Added Resellers (VARs) of accounting and ERP software in North America. Accounting Today’s annual report acknowledges resellers of accounting and ERP software who set the standard for quality of service and ability to deliver valuable solutions, and then ranks them based on revenue. “The fact ... (click for more)

Volunteers Race The Clock To Tell The Chamber Story

The Chattanooga Area Chamber of Commerce is hosting a new membership event Aug. 5-7. More than 400 volunteers will gather at the Chattanooga Theatre Center and get creative with themes, costumes and colors as they work against the clock and each other to recruit new Chamber members and spark community awareness of the Chamber’s role in supporting businesses.  “This ... (click for more)

County Commission Chairmanship Up For Grabs After Exit Of Henry, Skillern

The chairmanship of the County Commission is up for grabs after the exit of two commissioners who have held the post in recent years. Larry Henry is moving on to serve as Circuit Court clerk. Fred Skillern was upset by Randy Fairbanks in the Republican primary. Most of the returning commissioners have their eye on the possibility of taking over as chairman, or at least getting ... (click for more)

KFC Manager Arrested After Staging Fake Robbery

Police were called Sunday night after a manager of the KFC on 3rd Street staged a fake robbery in order to take money. Fellen Hayes, 24, was arrested after police say she conspired with a man named "Ira" to make her theft look like a robbery. These events occurred shortly after noon.  She initially called police saying that a tall black male had approached her and taken ... (click for more)

Curtis Adams: Beck, Mackey Should Be Considered For County Commission Leadership

Just think about this;  a person highly qualified applying for a job.  As he is just about finished filling out his papers for his interview, he sees at the bottom there is a place for him to check Democrat or Republican.  He would think, “if I mark the wrong one I may not get the job.” Being a real leader requires honesty, integrity, and, most importantly, fairness. ... (click for more)

Roy Exum: Mark’s 50th Anniversary Toast

In the new book that celebrates the first 50 years of baseball’s Southern League, its splendid author Mark McCarter recalls that very early in his career as a sports writer, he was riding with his boss somewhere and mentioned that if the legendary Allan Morris ever needed help covering the Chattanooga Lookouts that he’d love to help. Today, as he looks back, he ruefully adds, “I ... (click for more)