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.
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.
Letter to the editor by Bill Bergman, includes “We appreciate state Sens. Pam Jochum and Joe Bolkcom citing Truth in Accounting’s financial analysis of Iowa’s state government in their recent op-ed ('Federal bucks boost Iowa’s budget,' Nov. 2). But their op-ed overstates our appraisal of the contribution of federal funding to Iowa’s government finances. …”
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 John Hendrickson, includes “… Critics of Gov. Kim Reynolds argue that credit for Iowa’s strong and stable fiscal house belong to the massive amounts of federal stimulus spending. However, this argument does not hold water. Iowa’s fiscal house is on a strong foundation because of following fiscal conservative policies. At this time, Iowa has received over $9 billion in federal stimulus dollars.”
Op-ed by John Hendrickson, includes “… Since assuming office Governor Reynolds has pursed a policy of prudent budgeting and pro-growth tax reform that has kept Iowa’s fiscal house in strong and stable condition, while providing for the priorities of government. Truth in Accounting, which has recently released their Financial State of the States 2021 report ranks Iowa in the top 10 (9 out of 50) of fiscally stable states.”
By Rod Boshart, includes “… ‘Iowa is in a very strong financial position due to our fiscal responsibility,’ Reynolds said in a statement. … Sheila Weinberg, founder and chief executive officer of Truth in Accounting, said the uncertainty surrounding this current crisis makes it impossible to determine how much will be needed to maintain government services and benefits.”
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 Daniel Vock, includes “Congress could soon have a chance to restore tax breaks that would especially benefit Americans living in places where incomes are high, and government spending is too. …"
By Patricia Patnode, includes “Iowa Gov. Kim Reynolds recently decided to reject $95 million in federal COVID funds … This is reflective of Iowa’s budgetary philosophy, set in our state constitution. … Iowa’s fiscal responsibility benefits other Americans, too. During the COVID-19 pandemic, Congress has debated bailing out Illinois. "
By Laura Olson, includes “Guidance issued Monday by the U.S. Treasury details a list of specific ways that states and local governments can use the money—and some ways they cannot, like using it to offset new tax cuts.”
Includes “… Republicans argue that taxpayer dollars should not be given to blue states to ‘bail them out’ for policies such as business shutdowns they say led to high unemployment and steep revenue declines, or for histories of budget mismanagement that left them less capable of handling the pandemic.”