The states in the Fifth and Sixth Federal Reserve Districts are shown in Table 1. As seen, the states, and the local units within them, are economically diverse. Four of the 11 states rank among the lowest nationally with regard to state gross domestic product (GDP) including Mississippi (50), West Virginia (49), South Carolina (46) and Alabama (44). The local units within these states, already strained economically, are likely to be
harshly affected by the recession. Louisiana, ranked 38th, is in worse shape than indicated by its GDP because the price of oil has plummeted. Three states rank around the middle in state GDP (Georgia—26, Florida—25, and North Carolina—21) while Maryland (14) and Virginia (8) are relatively affluent. An examination of other economic indicators similarly reveals similar variation. Moreover, some state and local revenues are threatened by particular economic indicators as will be noted.

This article is supporting documentation for the Alliance for Innovation Navigating the Fiscal Crisis White Paper.