Conning’s Head of Municipal Credit Research, Karel Citroen, discusses the firm’s latest annual evaluation of the credit conditions of all 50 U.S. states. The firm’s 2024 State of the States report assigns a “stable” outlook to the credit quality of all 50 U.S. states, an upgrade from last year’s “declining” view. State finances appear strong with healthy reserves, but inflation and rising costs are beginning to impact budgets, prompting the suggestion that states be judicious in spending plans.