Posted BY: | NwoReport

“Thirty-one states, or over two-thirds of U.S. states, do not have enough cash to pay their bills. For the thirteenth year in a row, nonpartisan accounting watchdog Truth in Accounting (TIA) released its ‘Financial State of the States’ report on Tuesday describing the weak financial condition of numerous states.”

To balance the budget as required by law in forty-nine states, “elected officials have not included the true costs of the government in their budget calculations and have pushed costs onto future taxpayers,” according to TIA’s methodology.

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TIA divides the number of funds needed to pay bills by the number of state taxpayers to produce what it calls the Taxpayer Burden. TIA’s analysis is based on the most recent available data from state financials; for most states, fiscal year (FY) 2021 ran from June 1, 2020, to June 30, 2021.

At the end of fiscal year 2021, all states had a total debt level of $1.2 trillion, a 26% increase from FY 2020. This news is worrisome, especially in a rising inflationary environment and one in which some economic indicators show us close to, or even in, a recession. The most indebted states’ cost of borrowing will rise making it even harder to resolve their fiscal challenges. When unemployment starts to rise, this will compound states’ fiscal challenges.

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