. Total State Debt Tops $5 Trillion A troubling new report discloses that the total debt facing U.S. state governments now stands at $5.1 trillion — equal to about $16,180 for each state resident. Total debt amounts to one-third of annual gross state product, and 469 percent of all fiscal year state general and other fund revenues, according to the report from State Budget Solutions (SBS). Since 2010, SBS has conducted a comprehensive examination of debts facing the 50 state governments, the report explains. These reports have repeatedly found trillions in combined debt that stand in stark contrast to officials proclamations of balanced budgets and belt-tightening. SBS calculates state debt based on four components: unfunded public pension liabilities; outstanding government debt, including bonds and leases; unfunded other post-employment benefit liabilities (OPEB), mainly retirees health benefits; and outstanding unemployment trust fund loans from the federal government. Unfunded public pension liabilities stand at $3.9 trillion. Outstanding debt totals $618.8 billion. Unfunded OPEB liabilities in the 50 states stand at $528.7 billion; and unemployment trust fund loans total $19.9 billion, according to SBS. California leads all states with $778 billion in debt, due largely to its $584 billion unfunded public pension liability. New York is next with $388 billion in total debt, followed by Texas with $341 billion, and Illinois and Ohio, each with $321 billion. The only states with debt under $10 billion are South Dakota ($7.7 billion), Vermont ($7.8 billion), North Dakota ($9.2 billion), and Wyoming ($9.9 billion). In per capita terms, Alaskas debt amounts to $40,714 per person, Hawaiis is $33,111, and Connecticuts is $31,298. The lowest per capita debt is in Tennessee, $6,358. Nevadas state debt stands at 1,048 percent of its fiscal year 2012 spending, and Hawaiis debt amounts to 64 percent of its gross state product. Over time, state debt will exact a toll on state budgets, SBS observes. Money once expected to fund vital services like education and healthcare will have to be redirected to debt service, increased contributions to public pension systems, and more.
Posted on: Sun, 16 Feb 2014 21:25:39 +0000
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