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.
Paying off the obligations the state of Michigan owes public retirees and others would require each taxpayer to surrender another $4,100 to the public treasury, according to a new report from a nonprofit that analyzes state budgets. The report also warns that Michigan’s budget could face an 8% shortfall if the federal government were to reduce its financial support of Michigan to its pre-pandemic level.
(The Center Square) – Michigan ranked 32nd nationally, according to Truth in Accounting’s 2025 “Financial State of the States” report.
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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"Moody's Investors Service upgraded Detroit's bond rating again , getting the city one step closer to a major milestone in its financial recovery after falling into bankruptcy a decade ago."
This year's report found that 31 states did not have enough money to pay all of their bills.
By Harold Ford, includes “Flint Community Schools (FCS) can expect a rosier financial picture in the short-term due to an infusion of Federal COVID relief funds and debt relief, according to an audit report by the accounting firm Plante Moran. ”
By Ryan Johnston, includes “Researchers at the University of Michigan on Wednesday announced plans to help Flint, Michigan, develop new open-data standards to improve the city’s financial transparency. … The city plans to base the system on a software standard called Extensive Business Reporting Language — or XBRL — which is designed to make it easy to compile and share financial data.”
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.
Editorial, includes “This has been a banner year for school choice across much of the U.S., and Michigan is the latest state to advance the cause. The GOP-led Legislature last week passed choice legislation that will force Democratic Gov. Gretchen Whitmer to choose between students and teachers unions. … The bills meet growing demand fueled by parental frustration with public schools that has increased during the pandemic. …”
By Beth LeBlanc (The Detroit News), includes “The federal government warned Michigan in May 2020 to avoid adopting overly lenient qualifications for pandemic unemployment assistance as it carried out the federal jobless aid program. … The state didn't send letters asking people to recertify under different qualifications until late June — more than a year after the Department of Labor initially warned about the loose criteria.”
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 Koby Levin, includes “… Those are just a few features of a $1.4 billion investment in Michigan’s child care system. The new state budget, which draws heavily on federal COVID aid dollars, is expected to have an immediate impact on families with young children, and to close funding gaps in the early education system that have destabilized the early childhood workforce and left wide swathes of the state in ‘child care deserts.”
By Drew Lindsay, includes “ It began with a highly unusual offer from two business executives — who both have billions in wealth — to bankroll a distressed city government."