...Debt and Pension Burden Moderate Overall: Fitch Ratings' metric combining states' debt and unfunded pension obligations is a moderate 5.8% of personal income based on fiscal 2014 data. The median for tax-supported debt totals 2.4% of personal income, while the median for unfunded pensions is 3.7% of personal income; Fitch adjusts the pension figure to reflect a 7% discount rate. Compared with Fitch's report last year (reflecting fiscal 2013 data), the debt burden is slightly lower, while the unfunded pension burden is slightly higher. Funded Ratios Stable: The median funded ratio for major statewide systems in 2014 remained nearly unchanged in 2014 at 71.5%, based on reported data. From a prerecession high (in 2007) at 84.7%, the median funded ratio fell to 68.9% (in 2012) as severe recessionary market declines were gradually smoothed into asset valuations. Several years of strong market gains through 2014 offset remaining market declines and steadily rising liabilities, thus lifting reported...
