We assess the fiscal health of the states. Each edition of these rankings has provided a snapshot of each state’s fiscal health by presenting information from states’ audited financial reports in an easily accessible format. The goal for our research has been to establish a consistent set of financial data and basic indicators with which to evaluate individual state performance, better understand the factors that drive changes in performance, and identify areas where financial reporting may improve. States face many fiscal problems, but these problems are not insurmountable. Studying how each state is performing with regard to a variety of fiscal indicators can help state policymakers address persistent issues and anticipate potential problems.