Thursday, March 28, 2024
Hawai'i Free Press

Current Articles | Archives

Sunday, August 31, 2014
Report: These Five States Have Highest Liability Per Taxpayer
By Heritage Foundation @ 3:39 PM :: 5971 Views :: Hawaii State Government, Hawaii Statistics

Report: These Five States Have Highest Liability Per Taxpayer

by Josh Siegel, Heritage Foundation Daily Signal, August 31, 2014

Taxpayers in Alaska who enjoy keeping their money will be happy to see a new report that claims the country’s 49th state is best able to fund its obligations.

Residents of Connecticut may not feel as good.

The Truth in Accounting report ranks the states by “taxpayer burden,” a measure that represents the amount each taxpayer would have to pay his or her state’s treasury to fill its financial hole.

Truth in Accounting, a Chicago-based nonprofit, determined that the states with the highest taxpayer burden — deemed “Sinkhole States” — are, in descending order, Connecticut, Illinois, New Jersey, Massachusetts and Hawaii.

The "Sinkhole States"

The “Sinkhole States”

The states with the largest “taxpayer surplus” — called “Sunshine States” based on having assets available to pay their bills — are, from the top:  Alaska, North Dakota, Wyoming, Utah and South Dakota.

The "Sunshine States"

The “Sunshine States”

Taxpayer burden is calculated by determining each taxpayer’s share of state debt after setting aside capital-related debt and assets.  Remaining debt is primarily unpaid pension and retirement health promises.

In its fifth annual report, released this month, Truth in Accounting says states that have unfunded pension liabilities put a burden on future taxpayers, even though “they will not receive any services” from the retired employees who earn those pensions.

States with taxpayer surplus, on the other hand, fund pension costs during the year employees earn the benefits, and the money is set aside for that year.

Connecticut, which the report considers to be in the worst financial shape, has an overall budget shortfall of $61.4 billion, which breaks down to $48,100 per taxpayer.

Truth in Accounting reports that most of Connecticut’s retirement benefits have been promised but not funded.

A Connecticut law requires the legislature to pass a balanced budget. This likely explains why the state chose not to report its entire retirement benefit liability. The report says:

One of the reasons Connecticut is in this precarious financial position is state officials use antiquated budgeting and accounting rules to report Connecticut’s financial condition. Since employee retirement benefits are not immediately payable in cash, the related compensation costs have been ignored when calculating balanced budgets.

Alaska, reported to be in the best financial shape, has an overall budget surplus of $13.5 billion, which breaks down to $46,900 per taxpayer. The report says Alaska has enough money to pay state employees’ retirement benefits and other outstanding bills:

Alaska is in good financial shape because the legislators and governors have only promised citizens and employees what they can afford to deliver.

See how your fared state by reading the Truth in Accounting report.

The worst performing states

The worst performing states

Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

808 Silent Majority

Aloha Pregnancy Care Center

AntiPlanner

Antonio Gramsci Reading List

A Place for Women in Waipio

Ballotpedia Hawaii

Broken Trust

Build More Hawaiian Homes Working Group

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 ConCon Info

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federalist Society

Hawaii Federation of Republican Women

Hawaii History Blog

Hawaii Homeschool Association

Hawaii Jihadi Trial

Hawaii Legal News

Hawaii Legal Short-Term Rental Alliance

Hawaii Matters

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 Moms for Liberty

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

Managed Care Matters -- Hawaii

Malama Pregnancy Center of Maui

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

Practical Policy Institute of Hawaii

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

School Choice in Hawaii

SenatorFong.com

Sink the Jones Act

Statehood for Guam

Talking Tax

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