Debt Bombs: Here Are The States With The Most Debt

According to a new report from Truth in Accounting, the most-indebted states include New Jersey, Illinois, Connecticut, Massachusetts, Hawaii, Delaware, Kentucky, California, and New York. 

Truth in Accounting published the Financial State of the States report, a regional analysis of the most recent state government financial data, on Tuesday, that is one of the most comprehensive studies of the economic conditions of all 50 states. The report includes the most up-to-date state finance and pension data, trends across the states, and key findings.

The report said all 50 states have had to become more transparent in their financial reporting over the last several years, thanks to the implementation of Generally Accepted Accounting Principles set by the Governmental Accounting Standards Board.

Researchers this year uncovered something truly shocking: “40 states do not have enough money to pay all of their bills and in total the states have racked up $1.5 trillion in unfunded state debt.” 

Truth in Accounting ranks the states below according to their Taxpayer Burden or Surplus, which at the end of the day, it’s what the taxpayer is on the hook for.

Here are the rankings (from less indebted to most indebted): 

1. Alaska, $74,200 per taxpayer
2. North Dakota, $30,700
3. Wyoming, $20,800
4. Utah, $5,300
5. Idaho, $2,900
6. Tennessee, $2,800
7. South Dakota, $2,800
8. Nebraska, $2,000
9. Oregon, $1,600
10. Iowa, $700
11. Minnesota, -$200
12. Virginia, -$1,200
13. Oklahoma, -$1,200
14. North Carolina, -$1,300
15. Indiana, -$1,700
16. Florida, -$1,800
17. Montana, -$2,100
18. Arkansas, -$2,300
19. Arizona, -$2,500
20. Nevada, -$3,100
21. Wisconsin, -$3,200
22. Georgia, -$3,500
23. Missouri, -$4,300
24. New Hampshire, -$5,000
25. Ohio, -$6,600
26. Kansas, -$7,000
27. Colorado, -$7,200
28. Washington, -$7,400
29. Maine, -$7,400
30. West Virginia, -$8,300
31. Mississippi, -$10,000
32. Alabama, -$12,000
33. Texas, -$12,100
34. New Mexico, -$13,300
35. Rhode Island, -$13,900
36. South Carolina, -$14,500
37. Maryland, -$15,500
38. Michigan, -$17,000
39. Pennsylvania, -$17,100
40. Louisiana, -$17,700
41. Vermont, -$19,000
42. New York, -$20,500
43. California, -$21,800
44. Kentucky, -$25,700
45. Delaware, -$27,100
46. Hawaii, -$31,200
47. Massachusetts, -$31,200
48. Connecticut, -$51,800
49. Illinois, -$52,600
50. New Jersey, -$65,100

And what was social media’s response to the new report?

One user said: “Look at who has controlled the State Legislatures in all the high debt States – in nearly every case it has been the Democrats, and for many years. Governors come and go – it is the Legislature that really decides if a State will be wild spending or not.” 

Another said: “I live in Illinois. Lifelong Illinoisan. Yes I know it sucks. My 5 year plan is to leave the state before it collapses financially any home value plummets. Property taxes, sales taxes and income taxes are insane over here. DO NOT MOVE HERE.” 

The biggest take away from the report, as explained by one social media user above, is that when the next recession strikes, the most indebted states will collapse.