Saturday, November 27, 2021
Hawai'i Free Press

Current Articles | Archives

Tuesday, September 28, 2021
Hawaii Among Five Worst 'Sinkhole States'
By News Release @ 7:22 PM :: 1832 Views :: Hawaii State Government, Hawaii Statistics

**To read the full report, please click here to download the PDF**

Financial State of the States 2021

From Truth in Accounting, September 28, 2021

Truth in Accounting has released its twelfth annual Financial State of the States report, a nationwide analysis of the most recent state government financial information. This comprehensive analysis surveys the fiscal health of the 50 states during the beginning of the COVID-19 pandemic. 

Despite receiving federal assistance from the CARES Act and other COVID-19 related grants, the majority of states’ finances worsened. Total debt among the 50 states amounted to $1.5 trillion at the end of the fiscal year 2020. 

Bottom Five Sinkhole States:

(46) HAWAII needed $18 billion more than it had to pay its bills, or $37,000 per taxpayer, at the end of fiscal year 2020. More than half of Hawaii’s debt comes from unfunded pension benefits, which totaled $10.4 billion. Hawaii remained in the bottom five Sinkhole States for the third year in a row….

Hawaii’s Financial Condition Worsened Despite Federal Funds

Financial State of Hawaii, September, 2021

Despite receiving support from COVID relief grants and other federal programs, Hawaii’s overall financial condition worsened during the onset of the pandemic. Based upon the state’s fiscal year 2020 audited financial report, Hawaii had a Taxpayer Burden™ of $37,000, earning it an “F” grade from Truth in Accounting.

Hawaii’s elected officials have repeatedly made financial decisions that left the state with a debt burden of $18 billion. That burden came to $37,000 for every state taxpayer. Hawaii’s financial problems stem mostly from unfunded retirement obligations that accumulated over the years. The state had only set aside 53 cents for every dollar of promised pension benefits and 21 cents for every dollar of promised retiree health care benefits.

Hawaii did not have enough money set aside to weather the pandemic and the state has been in dire fiscal shape for years. Like all other states, Hawaii received federal assistance from the CARES Act and other COVID-19 related grants which came with stipulations on how the money could be spent. The state has not been properly funding its pension and retiree health care promises for years which has led to its financial condition continuing to deteriorate.

The data included in this report is derived from the state of Hawaii’s 2020 audited Annual Comprehensive Financial Report and retirement plans’ reports. To compare states’ financial information go to Data-Z.org.

Hawaii’s Financial Breakdown

Fast Facts

  • Hawaii had $6.5 billion available to pay $24.5 billion worth of bills.
  • The outcome was a $18 billion shortfall, which breaks down to a burden of $37,000 per taxpayer.
  • Hawaii’s overall financial condition worsened by 11 percent during the onset of the pandemic mostly because pension plan liabilities increased faster than investment income.

THE STATE’S BILLS EXCEEDED ITS ASSETS

Total assets $29,882,901,000
Minus: Capital assets ($18,146,796,000)
Restricted assets ($5,229,969,000)
Assets available to pay bills $6,506,136,000
Minus: Total bills ($24,458,251,000)
Money available (needed) to pay bills ($17,952,115,000)
Each taxpayer’s share of this debt ($37,000)

 

BILLS THE STATE ACCUMULATED

Bonds $10,551,295,000
Other liabilities $4,298,787,000
Minus: Debt related to capital assets ($10,248,820,000)
Unfunded pension benefits $10,436,241,000
Unfunded retiree health care benefits $9,420,748,000
Total bills $24,458,251,000

 

Grade F

Bottom line: Hawaii would need $37,000 from each of its taxpayers to pay all of its bills, so it received an “F” for its finances. According to Truth in Accounting’s grading scale, any government with a Taxpayer Burden greater than $20,000 receives an “F” grade.

read … Full Report 

JTN:  Seven of the 10 states in worst financial condition are run by Democrats

 

Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

808 Silent Majority

ACA Signups Hawaii

Alliance Defending Freedom

Aloha Pregnancy Care Center

American Council of Trustees and Alumni

AntiPlanner

Antonio Gramsci Reading List

A Place for Women in Waipio

Astronomy Hawaii

Back da Blue Hawaii

Ballotpedia Hawaii

Better Hawaii

Broken Trust

Build More Hawaiian Homes Working Group

ChinaTownWatch.com

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

DVids Hawaii

FIRE

Fix Oahu!

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Habele.org

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii Coalition Against Legalized Gambling

Hawaii ConCon Info

Hawaii Credit Union Watch

Hawaii Crop Improvement Association

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Advocates

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federalist Society

Hawaii Federation of Republican Women

Hawaii Future Project

Hawaii Gathering of Eagles

Hawaii History Blog

Hawaii Homeschool Association

Hawaii Jihadi Trial

Hawaii Legal News

Hawaii Life Alliance

Hawaii March for Life

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Smokers Alliance

Hawaii State Data Lab

Hawaii Together

HIEC.Coop

HiFiCo

Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Navy League

Honolulu Traffic

House Minority Blog

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

Investigative Project on Terrorism

July 4 in Hawaii

Kakaako Cares

Keep Hawaii's Heroes

Land and Power in Hawaii

Legislative Committee Analysis Tool

Lessons in Firearm Education

Lingle Years

Malulani Foundation

Managed Care Matters -- Hawaii

Malama Pregnancy Center of Maui

Mauna Kea Recreational Users Group

MentalIllnessPolicy.org

Military Home Educators' Network Oahu

Missile Defense Advocacy

MIS Veterans Hawaii

NAMI Hawaii

Natatorium.org

National Christian Foundation Hawaii

National Parents Org Hawaii

NFIB Hawaii News

No GMO Means No Aloha

Not Dead Yet, Hawaii

NRA-ILA Hawaii

Oahu Alternative Transport

Obookiah

OHA Lies

Opt Out Today

OurFutureHawaii.com

Patients Rights Council Hawaii

PEACE Hawaii

People vs Machine

Pritchett Cartoons

Pro-GMO Hawaii

P.U.E.O.

RailRipoff.com

Rental by Owner Awareness Assn

ReRoute the Rail

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

Robotics Organizing Committee

Save Dillingham Airfield

School Choice in Hawaii

SenatorFong.com

Sink the Jones Act

Statehood for Guam

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

UCC Truths

US Tax Foundation Hawaii Info

VAREP Honolulu

Waagey.org

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii

Yes2TMT