Delaware ranks near the bottom in a measurement of state debt.
Chicago-based Truth in Accounting gave Delaware the low ranking based on per capita debt or the amount of money each resident would have to pay to make the state debt-free. The ranking came in the Financial State of the States report.
Delaware gave the state an F grade. The failing grade was awarded to states with a debt burden of more than $20,000 per resident, Delaware ranked 44th overall on the list, with neighboring New Jersey ranking at the bottom.
Ranking one, two and three on the list were energy-rich Alaska, North Dakota and Wyoming.
Based on the grading methodology, three states received A’s, six received B’s, 13 received C’s, 19 received D’s, and nine states received an F.
The total state debt nationwide amounts to $1.5 trillion in unfunded debt, the taxpayer group reported.
Most of this debt comes from unfunded retiree benefit promises, such as pension and retiree health care debt.
This year, pension debt accounts for $832.6 billion, and retiree health care debt amounted to $614.9 billion.
Truth in Accounting’s report did not put much stock in states, such as Delaware, which require balanced budgets. The group claimed that states use many accounting practices to work around the requirement.
See full report below:
[pdf-embedder url=”http://delawarebusinessnow.com/wp-content/uploads/2018/05/FINAL-FSOS-BOOKLET.pdf”]
Chicago-based Truth in Accounting gave Delaware the low ranking based on per capita debt or the amount of money each resident would have to pay to make the state debt-free. The ranking came in the Financial State of the States report.
Delaware gave the state an F grade. The failing grade was awarded to states with a debt burden of more than $20,000 per resident,
Delaware ranked 44th on the list, with neighboring New Jersey ranking at the bottom.
Ranking one, two and three on the list were energy-rich Alaska, North Dakota and Wyoming.
Based on the grading methodology, three states received A’s, six received B’s, 13 received C’s, 19 received D’s, and nine states received an F.
The total state debt nationwide amounts to $1.5 trillion in unfunded debt, the taxpayer group reported.
Most of this debt comes from unfunded retiree benefit promises, such as pension and retiree health care debt.
This year, pension debt accounts for $832.6 billion, and retiree health care debt amounted to $614.9 billion.
Truth in Accounting’s report did not put much stock in states, such as Delaware, which require balanced budgets. The group claimed that states use many accounting practices to work around the requirement.
