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Mounting fiscal pressures can erode reserves, pile up debt, and ultimately threaten public services or lead to tax hikes. A new Reason Foundation study identifies where those warning signs are emerging across state and local governments.

State and local government finances in America: A comprehensive analysis of debt and liquidity

Based on audited financial reports from more than 20,000 government entities, this study uses eight objective indicators to identify emerging fiscal risks.

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Nassau and Miami-Dade counties each trigger five fiscal red flags, the most among America’s 100 largest counties. Nassau owes more than twice what it holds in assets, while Miami-Dade has the highest liabilities per resident of any large county.

Study: Nassau County and Miami-Dade are nation's most fiscally-stressed counties

Westchester County (NY), Prince George’s County (MD), Jefferson County (AL), Denton County (TX), and Baltimore County (MD) also have significant fiscal red flags.

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A new analysis of eight key financial metrics finds New Jersey is the nation’s most fiscally distressed state, triggering six of eight possible red flags. Connecticut, California, Hawaii, Illinois, Massachusetts, North Dakota and Pennsylvania have the next highest numbers of financial red flags.

Study: New Jersey and Connecticut are the most financially distressed states

New Jersey has the most financial red flags, followed by Connecticut, California, Hawaii, Illinois, Massachusetts, North Dakota and Pennsylvania. Twenty-three states have zero red flags.

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Nassau (NY) and Miami-Dade (FL) each trigger five red flags, making them the nation's most fiscally stressed county governments. Westchester (NY), Prince George's County (MD), Jefferson (AL), Denton (TX), and Baltimore (MD) counties all register four fiscal red flags.

Study: Nassau County and Miami-Dade are nation's most fiscally-stressed counties

Westchester County (NY), Prince George’s County (MD), Jefferson County (AL), Denton County (TX), and Baltimore County (MD) also have significant fiscal red flags.

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Mayor Zohran Mamdani deserves credit for eliminating outdated regulations and holding businesses accountable through clear standards and meaningful penalties.

Connecticut shouldn’t have to choose between supporting families who need affordable childcare and keeping its commitments to teachers and public employees.

While facial age estimation help platforms comply with youth safety laws, it comes at a steep privacy cost. Requiring facial scans lowers privacy protections for everyone, especially teens, and risks creating a system where access to online spaces depends on surrendering sensitive biometric data.

Protecting teens online shouldn't require mandatory facial scans for digital users

While facial age estimation offers a convenient way to respond to youth online safety demands, the tool comes with serious privacy costs.

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