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Institutional Framework Assessments For U.S. Local Government Portfolios

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Institutional Framework Assessments For U.S. Local Government Portfolios

This report does not constitute a rating action.

In this article, S&P Global Ratings provides the institutional framework (IF) assessments it derives from the application of the criteria "Methodology For Rating U.S. Governments," published Sept. 9, 2024. This commentary is intended to be read in conjunction with those criteria.

Institutional Framework Assessments

The IF is the set of formal rules and laws--as well as practices, customs, and precedents--that shape the environment in which U.S. governments operate. Our assessment is mostly qualitative and considers the historical track record as well as changes that are likely to shape the framework. As stated in the U.S. governments criteria, factors in our assessment are:

  • Predictability;
  • Revenue and expenditure balance and system support; and
  • Transparency and accountability.

State constitutions and state laws broadly dictate the terms under which U.S. governments operate. Therefore, we assess the institutional framework by state and type of government. When the legal or practical environment for a specific local government differs from the norm in its state, we assess that specific government accordingly. Special districts generally receive the same IF assessment as municipalities in that state.

The table shows our assessments for 136 institutional frameworks in the U.S.

IF assessments by state and type of government 
 State Counties Municipalities Schools

Alabama

3 2 2

Alaska

2 2 N/A

Arizona

2 2 3

Arkansas

2 2 N.M.

California

2 2 2

Colorado

2 2 2

Connecticut

N/A 1 2

Delaware

1 2 N/A

Florida

2 2 2

Georgia

1 1 2

Hawaii

1 N/A N/A

Idaho

2 2 2

Illinois

2 2 3

Indiana

3 3 3

Iowa

2 3 2

Kansas

2 2 2

Kentucky

2 2 2

Louisiana

2 2 2

Maine

2 1 2

Maryland

1 1 N.M.

Massachusetts

2 2 2

Michigan

2 2 3

Minnesota

1 1 2

Mississippi

2 2 2

Missouri

2 2 3

Montana

2 2 2

Nebraska

2 2 2

Nevada

2 2 2

New Hampshire

2 1 1

New Jersey

2 2 2

New Mexico

2 2 2

New York

2 2 2

North Carolina

1 1 N/A

North Dakota

2 2 2

Ohio

2 2 2

Oklahoma

2 2 3

Oregon

2 2 2

Pennsylvania

2 2 2

Rhode Island

N/A 2 N.M.

South Carolina

2 2 2

South Dakota

2 2 2

Tennessee

1 1 2

Texas

1 1 2

Utah

1 1 2
Vermont N.M. N.M. N.M.

Virginia

1 1 N/A

Washington

2 3 2

West Virginia

2 2 3

Wisconsin

2 2 2

Wyoming

2 2 2
N/A--Not applicable; this type of government doesn't exist in this state. N.M.--Not meaningful; we don't currently rate this type of government in this state.

Related Criteria

This report does not constitute a rating action.

Analytical Contacts:Cora Bruemmer, Chicago + 1 (312) 233 7099;
cora.bruemmer@spglobal.com
Victor M Medeiros, Boston + 1 (617) 530 8305;
victor.medeiros@spglobal.com
Benjamin P Geare, San Francisco + 1 (415) 371 5047;
benjamin.geare@spglobal.com

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