Truth in Accounting, a non-partisan organization that works to promote fair and accurate government financial reports, recently released their 2012 Financial State of the States analysis. According to the report, states still have nearly $1.3 trillion of debt despite 49 of them operating with balanced budget requirements. Many use clever accounting to shift the burdens of their debt off to the next generation; these tricks have enabled 42 states to create financial woes for current and future taxpayers. The current situation in the states combined with the debt issues on the federal level result in an increased burden for millennials as well as future generations.

The report divides the states into “sunshine states” and “sinkhole states”. Sunshine states have a per-taxpayer surplus, meaning they have the assets to pay for their bills. The top five sunshine states are: Alaska, Wyoming, North Dakota, Utah, and Nebraska. Sinkhole states have a per-taxpayer burden, and the top five are: Connecticut, Illinois, Hawaii, New Jersey, and Kentucky. In total, 42 states earn sinkhole status and the situation is worsening as the baby boomers retire and state-run pensions become more costly to manage. Not only will millennials need to service much of this debt, it is also likely these pension funds will not exist by the time they reach retirement.