"Most people probably don't imagine the vicinity of South Sioux City, Neb., as the national leader in responsible government finance, but it is, according to financial publication Barron's.
This week, Barron's named Nebraska the best state in the country when it comes to managing government budgets. Iowa was second and South Dakota third — making the tri-state corner near South Sioux City the nation's garden spot when it comes to savvy government finance.
“Nebraska has virtually no tax-supported debt and the country's lowest unfunded pension obligation,” Barron's wrote.
“It is notable for having a 'cash-balance plan,' a cross between a traditional pension and a 401(k) plan that has been adopted by companies including IBM.
This cuts financial obligations relative to regular pensions.
Other states are looking at the idea.”
A lot of it comes down to the fact that you can't lose at a game you refuse to play:
Low state debt is the law in Nebraska.
The Nebraska constitution prohibits the state from having more than $100,000 of bond debt.
“I am thrilled we are ranked No. 1,” Gov. Dave Heineman said in an interview.
“We don't spend money we don't have.”...
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