Truth in Accounting has released its 10th annual Financial State of the States report analyzing the financial conditions of each state in the nation, with Arizona ranking 19th nationally and receiving a “C’ grade for overall fiscal health.
The most recent data from the 2018 national comprehensive annual financial reports conclude Arizona has only $10.3 billion available to pay off its $15.5 billion in bills, excluding money need to pay additional capital and restricted assets.
The state will need to pull $5.2 billion in order to be clear of all debts. Taxpayers must contribute $2,500 in state debt through the state’s taxpayer burden policy and will not receive any benefits in doing so.
According to the report, any state that holds a taxpayer burden up to $4,900 receives a “C” fiscal health ranking.
New generally accepted accounting principles that the Governmental Accounting Standards Board established a few years back require all state governments to disclose pension and other post-employment benefits on balance sheets. Arizona, along with other states, has yet to completely fund the benefits and are considered in debt due to owning money to government employees that will fund their retirement costs.
Arizona’s bills include $6.8 billion in bonds, $5 billion in unfunded pension benefits, a $6.7 billion debt in capital assets, $805 million in unfunded retiree health care benefits, and $9.5 billion in other liabilities.
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