While the pandemic may feel long over, the full economic implications are just beginning.
 
Amid a backdrop of rising public debt, state and local governments across the U.S. are facing significant fiscal challenges. A blend of shrinking tax revenues, increasing expenditures, and the gradual pullback of federal support has set the stage for what could be a financial crisis in many regions.
Currently, over half of U.S. states have too much debt to keep up with. And with their  total debt levels swelling to unsustainable heights, local government finances are at a crossroads.
States home to major cities are under particular pressure due to their significant outstanding debt exacerbated by years of fiscal mismanagement and debts incurred to support state programs.
The most debt-ridden states now lead in per capita government debt—numbers that highlight the seriousness of the financial strain. Without strategic fiscal planning, they risk triggering a cycle of economic decline that impacts residents, businesses, and the overall quality of life.
Read on to learn:

• Why state-by-state debt is so high
• Which states have the highest total debt
• How declining property values impact property tax revenue in high-debt states
• How the urban "doom loop" accelerates fiscal decline in high-debt states