Utah maintains AAA bond rating thanks to prudent fiscal management
January 15, 2016
Gov. Gary R. Herbert and State Treasurer David Damchen announced Tuesday that Utah received a AAA bond rating from the two rating agencies to review the state this year. The announcement affirms Utah’s strong state economy and prudent fiscal management.
“Utah’s conservative fiscal principles and debt management practices continue to provide the state with the highest credit ratings available,” Gov. Herbert said. “This demonstrates the state’s ability to do what many others have failed to accomplish: manage money wisely.”
Utah is one of only nine states to maintain a triple-A bond rating—the highest possible rating—from all three rating agencies. At the same time, the state of Utah continues to be less reliant on federal dollars than its peers. Currently, Utah has the lowest total federal spending of any state when measured on a per-capita basis and the seventh-lowest total federal spending relative to gross domestic product.
The governor’s 2017 fiscal year budget also proposed to pay off $350 million in existing debt, bringing the total debt paid off by the state over the past five years to nearly $1.5 billion.
Utah enjoys broad economic success due to the prudent fiscal practices used to manage the state.
- For eight consecutive months in 2015, Utah posted the highest job growth rate in the country.
- Utah has the 3rd most diverse economy in the nation.
- In a study released last fall, Utah was named the most fundamentally sound economy in the U.S.
- Utah’s Rainy Day Fund now has $528 million, the highest amount in the state’s history.