The Final Four college basketball season has concluded, but legislative budget season continues. Some states are celebrating “surpluses” by seeking new spending opportunities.

Can citizens trust politicians offering another round of surplus spending? Truth in Accounting’s analysis shows 43 states have more debt than they can cover with available assets. Most state “surpluses” do not come close to covering this debt. Much of state government debt is unfunded pension and retirement health promises, which should have been paid every year, as part of employee compensation. Only seven states have enough assets to cover their liabilities: Nebraska, North Dakota, South Dakota, Tennessee, Utah and Wyoming.   

Because 49 of the 50 states are required to balance their budget every year, states should not create debt other than bonds for large infrastructure projects. So how can elected officials claim balanced budgets while they are actually accumulating debt?