Chicago-based economic think tank Truth in Accounting recently released its State of the States Report for the 2013 fiscal year, and, according to the report, Pennsylvania has the thirteenth-worst debt of all the states in the nation: $14,500 per state taxpayer. That was enough to get Pennsylvania the rating of “sinkhole state,” from the group, which advocates for states to include on their balance sheets all real and certain expenses when incurred, not when paid.
The report finds that in 2013 Pennsylvania had a total of $89.7 billion in total assets, but of that $41.9 billion were capital assets (roads, buildings and land) that would have to be sold to pay off any state debt, while another $8.9 billion were restricted assets (meaning the use of the asset, such as a revenue bond, is for a specific stated purpose).
The report considers the remaining $38.9 billion in assets as available to pay the state’s bills. However, according to the report, the state had $100.9 billion in liabilities in 2013, meaning a $62 billion shortfall in the ability to cover debt. Much of that $62 billion is due to the state’s public pension unfunded liability, which the report set at $53.8 billion in 2013 ($34.02 billion for pension benefits, $19.8 billion for unfunded retiree health care benefits), and only $3.2 billion of that pension liability is reported on the state’s balance sheet. That pension benefit debt also represents an increase over the 2012 figure ($29.26 billion) by nearly $4.8 billion, to keep Pennsylvania solidly in fourth place in the nation for its pension benefit debt, behind Illinois ($100.5 billion), California ($59.4 billion) and Texas ($35.9 billion), and ahead of Massachusetts ($30.3 billion).
Source: Capitolwire
The report considers the remaining $38.9 billion in assets as available to pay the state’s bills. However, according to the report, the state had $100.9 billion in liabilities in 2013, meaning a $62 billion shortfall in the ability to cover debt. Much of that $62 billion is due to the state’s public pension unfunded liability, which the report set at $53.8 billion in 2013 ($34.02 billion for pension benefits, $19.8 billion for unfunded retiree health care benefits), and only $3.2 billion of that pension liability is reported on the state’s balance sheet. That pension benefit debt also represents an increase over the 2012 figure ($29.26 billion) by nearly $4.8 billion, to keep Pennsylvania solidly in fourth place in the nation for its pension benefit debt, behind Illinois ($100.5 billion), California ($59.4 billion) and Texas ($35.9 billion), and ahead of Massachusetts ($30.3 billion).
Source: Capitolwire
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