"In fiscal 2022, 28 states didn’t have enough revenue to pay all of their bills, according to the 14th annual Financial State of the States report, published by the Chicago-based nonprofit Truth in Accounting.
The report provides a comprehensive analysis of the fiscal health of all 50 states based on the latest available data from states’ fiscal year 2022 annual comprehensive financial reports.
New Jersey ranked last for having the worst fiscal health and the greatest taxpayer burden. Not far behind was Connecticut, followed by Illinois, Massachusetts, Hawaii, Kentucky, Delaware, Louisiana, California and Vermont in the bottom ten.
By contrast, 22 states reported surpluses, the majority of which are led by Republican governors."
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 Jim Waters, includes “Recent reports by a nationally respected organization raise concerns about Kentucky's lack of financial transparency and the ensuing consequences of such deficiency. … ”
By Jim Waters, includes “Recent reports by a nationally respected organization raise concerns about Kentucky’s lack of financial transparency and the ensuing consequences of such deficiency. … Truth in Accounting only ranked six states less financially transparent than Kentucky … ”
By Sarah Durand, includes “Truth in Accounting, a nationwide organization that researches and reports on government financial data to improve transparency, looked at each state’s annual comprehensive financial report. Based on their scoring system, which includes receiving a clean opinion from an independent auditor - an area where the commonwealth failed - only six states placed lower in their transparency rating.”
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 Anita Durairaj, includes “Truth in Accounting states that they are a non-profit interested in empowering citizens by providing them with transparent information about the government and its finances. Since 2009, they have provided an annual financial report for Kentucky. For the most recent financial report involving the 2020 fiscal year, they have graded Kentucky as failing in its fiscal health.”
By Steve Bittenbender (The Center Square), includes “… ‘The majority of states were financially unprepared for any crisis,’ Sheila Weinberg, founder and CEO of Truth in Accounting, said in a statement. ‘When states can’t pay their bills, taxpayers are on the hook.”
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 Geoff Mulvihill, includes “The Pew Charitable Trust report credits a booming stock market over the past year as well as states’ longer-term steps, which include boosting taxpayer contributions to public pension funds and reducing promised retirement benefits, particularly to newly hired workers. … The health of public pension systems resonates beyond government employees.”
By Jason Bailey, includes “Thanks to aggressive federal pandemic relief that has increased Kentuckians’ incomes and strengthened consumer spending, Kentucky’s budget is seeing large revenue surpluses that are boosting the state’s rainy day fund to a historically high balance. These resources present a critical opportunity to reinvest in Kentucky’s public services after over a decade of budget cuts.”
By Tom Latek, from July 9 2021, includes “The state of Kentucky wrapped up the fiscal year that ended June 30 with a record surplus in the General Fund, according to information released Friday by the state budget director’s office. … Gov. Andy Beshear reacted with excitement during a 58-second video posted on Facebook.”
By Andrea Riquier, includes “It’s a safe bet that many people, seeing their work described in print as ‘among the worst in the country,’ might cringe and try to avoid the media. But David Eager has spent the past five years running the Kentucky Public Pension Authority, with an eye to turning the system around. … ‘The hole (unfunded liability) is $16.5 billion. You’re going to pay your portion of that for the next 30 years. We’ve effectively assigned you a mortgage.’ MW: ‘I bet people loved that.’ …”
By Bruce Schreiner (AP), includes “Gov. Andy Beshear on Thursday dangled a $1,500 bonus meant to lure thousands of unemployed Kentuckians back to work, offering it as an alternative to cutting off enhanced jobless benefits that Republicans and businesses blame for causing a workforce shortage.”
By Katie Marriner and Andrea Riquier, includes “In 2001, some of the country’s biggest public pension systems were flush. The plan serving Kentucky state workers, for example, was 125.8% funded, meaning it had 25.8% more money on hand to pay all of what it owed current retirees and workers expected to retire for the next 30 years. But not even two decades later, Kentucky’s pensions, and some other previously over-funded plans, were in crisis. What happened? …”
Includes “… But Kentucky ranks 46th out of the 50 states on a range of financial metrics, according to the Mercatus Center at George Mason University. And the state rates 44th out of 50 according to Truth in Accounting, a nonpartisan, nonprofit group that analyzes government fiscal data.”
By Bruce Schreiner (AP), includes “Supporters said the measure would relieve some pressure on the state’s troubled public pension plan for teachers without solving its massive unfunded liability. Opponents said the pension changes would become a deterrent in recruiting people into teaching.”