States face a significant loss of federal dollars as temporary pandemic-related programs that were initiated in 2020 come to an end and national fiscal pressures rise.
Our sixteenth annual Financial State of the States (FSOS) report provides a comprehensive analysis of the fiscal health of all 50 states.
In the spirit of promoting clear and accurate fiscal information, Truth in Accounting has once again assessed the transparency of state governments’ financial reporting. While state budgets receive most of the public and media’s attention, their outcomes are detailed in each government's Annual Comprehensive Financial Report (ACFR), which is audited annually by certified public accountants. Our transparency score is based on key criteria outlining best practices, offering government officials and citizens a roadmap to enhance fiscal transparency and accountability.
Our fifteenth annual Financial State of the States (FSOS) report provides a comprehensive analysis of the fiscal health of all 50 states.
Truth in Accounting has once again created a transparency score for the financial reporting by state governments to encourage the publication of transparent and accurate government financial information.
Now Available
Our annual report on state fiscal health. Debt among the states improved slightly. Going from $1.2 trillion down to $938.6 billion.
What happened?
How did your state do? Read the full report below.
https://www.truthinaccounting.org/news/detail/financial-state-of-the-states-2023
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This year's report found that 31 states did not have enough money to pay all of their bills.
By Scott Shackford, includes “Birmingham News columnist John Archibald reports, ‘In a two-year period between 2018 and 2020 Brookside revenues from fines and forfeitures soared more than 640 percent and now make up half the city's total income.’ According to the records Archibald reviewed, Brookside as of 2020 was arresting more people for misdemeanors than it has residents.”
To encourage the publication of transparent and accurate government financial information, Truth in Accounting has created a transparency score for financial reporting by the states.
By Jared Walczak, includes “At the federal level, the state and local tax (SALT) deduction has emerged as a hot-button political issue ever since the deduction was capped at $10,000 under the Tax Cuts and Jobs Act (TCJA) of 2017. The SALT deduction has defenders as well as detractors, but a peculiar inversion of it—a state deduction for federal taxes paid—exists in only six states.”
By Mary Sell, includes “Like Alabama families watching the rising costs for groceries, gasoline and other goods, state officials are monitoring inflation increases that could impact government budgets and buying power. … ‘One of the biggest problems with inflation is it brings an instability into factor,’ Albritton said.”
PRESS RELEASE - FOR IMMEDIATE RELEASE
Truth in Accounting's twelfth annual Financial State of the States report, a nationwide analysis of the most recent state government financial information.
By Michelle Mann, includes “As part of the agreement, the county will appropriate a flat fee of 6 percent to ACCA for a five-year period for the services..."
By Mike Cason, includes “The Legislature will have to approve use of the American Rescue Plan money within guidelines set by the U.S. Treasury Department. State and local governments have until the end of 2024 to use the money. … A few weeks ago, the Treasury Department released 150 pages of rules on how state and local governments can spend the money. ”
The 2020 Financial State of the States report surveys the fiscal health of the 50 states prior to the coronavirus pandemic. This data is released today by Truth in Accounting (TIA), a think tank that analyzes government financial reporting.
How large could the shortfall in state government general revenues be, amidst the coronavirus and related crises?
The U.S. Tax Cuts and Jobs Act enacted at the very end of 2017, which limited the deduction of state and local taxes to $10,000, has focused attention on the vast differences among municipal levies.
In the worst-case scenario, if Birmingham officials continue to ignore the Retirement & Relief Pension Plan, unfunded liabilities could ultimately drive the city into bankruptcy.