Skip to comments.US States Are Facing Total Debt of Over $4 Trillion (Give or take a few Trillion.)
Posted on 10/25/2011 12:35:26 PM PDT by NormsRevenge
The total of U.S. state debt, including pension liabilities, could surpass $4 trillion, with California owing the most and Vermont owing the least, a new analysis says.
The nonprofit State Budget Solutions combined states' major debt and future liabilities, primarily for pensions and employee healthcare, unemployment insurance loans, outstanding bonds and projected fiscal 2011 budget gaps. It found that in total, states are in debt for $4.2 trillion.
The group, which follows state fiscal conditions and advocates for limited spending and taxes, said the deficit calculations that states make "do not offer a full picture of the states' liabilities and can rely on budget gimmicks and accounting games to hide the extent of the deficit."
The housing bust, financial crisis and economic recession .. caused states' tax revenue to plunge, and huge holes have emerged in their budgets over the last few years. Because all states except Vermont must end their fiscal years with balanced budgets, states have scrambled to cut spending, hike taxes, borrow and turn to the federal government for help.
Taxpayers are worried the states' poor fiscal health will persist for a long time and some Republicans in Congress have questioned whether the situation is worse than the states say.
State Budget Solutions relied on financial reports and income tax rates provided by the Federation of Tax Administrators in determining its rankings.
The true debt totals may be lower, though, because the group also used the highest estimates of pension gaps. The conservative think tank American Enterprise Institute says public pensions are short $2.8 trillion.
(Excerpt) Read more at cnbc.com ...
This doesn’t include the other local city and county govt obligations.
“The housing bust, financial crisis and economic recession .. caused states’ tax revenue to plunge, and huge holes have emerged in their budgets over the last few years.”
This sentence should have started with “Incompetence, rising to the level of high treason, caused states’...........”
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courtesy of the same communist gubmint unions who brought Greece and Italy to their knees...
Anybody know why Vermont does so well? It’s such a lefty state, I am surprised it isn’t in financial trouble. Perhaps all 3 VT Freepers could enlighten us. ;-)
Where is the list? The source does not give the information based on state. I want to know how my state came out.
Despite the high state debt levels, Vermont, North Dakota, South Dakota, Nebraska and Wyoming maintained positions at the very top of the list this year. Many of these states at the top of the list ranked very well across the board.Looks like Vermont is balancing their books on the backs of their children.
In predicting states' future economic performance, New York, Vermont, Maine, California, and Hawaii scored the lowest in the rankings.
Using the higher pension gap number, State Budget Solutions said California is in the biggest financial hole with total debt of more than $612 billion. New York follows with $305 billion of debt, and then Texas, with total debt of $283 billion. Vermont has the lowest amount of total debt at just over $6 billion.
According to the analysis, California has also borrowed the most from the federal government to pay for unemployment benefits, $8.6 billion. Michigan was next, taking out $3.1 billion, and then New York, borrowing $2.9 billion.
Connecticut has the highest debt per capita, at $5,402, and nine states have debt of more than $3,000 per capita.
Texas, with total debt of $283 billion.
Current year results:
Wednesday, October 5, 2011 Ogden: State has $1.8 billion surplus.
Looks like you could use an accounting course.
If it's over 10 fingers and 20 toes, fuggedabodit ;)
See comment #7. douginthearmy provided a link.
Thanks! I knew there must be an explanation. The laws of economics are like the law of gravity. The longer you defy them, the harder the landing. :-)
20 toes? You born in the shadow of a nuke plant?
Don’t need toes. You got a computer! It can do the accounting and math if you ask it nicely. ;)
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