Fitch Ratings reports a temporary decline in U.S. state long-term liability burdens for fiscal 2022, with the median ratio of state direct debt plus net pension liabilities falling to 4% from 4.5% of personal income. The drop is attributed to pandemic recovery market exuberance, leading to a 24% rise in state pension asset portfolios. However, market volatility has already reduced some gains, with a 5.2% average drop in pension plan assets. States like California and Connecticut made significant supplemental pension contributions. Fitch anticipates continued volatility and potential declines if economic conditions worsen.