Iowa Ranks 9th Nationally For Fiscal Health In Truth in Accounting Report | Iowa
(The Center Square) – Iowa received a “B” in “financial condition” on its report card from Truth in Accounting, a government watchdog, as it released its report on the financial state of the states on Tuesday 2021.
The state ranked 9th in the country, with a surplus of $ 2 billion or about $ 2,000 per taxpayer based on its unaudited preliminary financial report for fiscal year 2020, as it had 12, $ 7 billion to pay $ 10.6 billion in bills, according to the report. It is one of 11 states with enough money to pay its bills. The state‘s overall financial situation improved by nearly 25% “largely thanks to COVID-related subsidies” of $ 2 billion, the report says.
“[Federal support from COVID-19 related grants and the surplus] will help the state overcome future public health or economic crises and market downturns, which can cause the value of a government’s assets to fluctuate, âthe report said. âThe uncertainty surrounding this current crisis makes it impossible to determine how much will be needed to maintain government services and benefits. “
States with a surplus exceeding $ 10,000 per taxpayer receive an “A”.
Thirty-nine states did not have enough funds to pay their bills. Fifteen of them had a tax burden of $ 5,000 to $ 20,000. These states received a âDâ on their ballot. Fiscal 2020 ended with a total debt of $ 1.5 trillion among the 50 states.
While Iowa was a leader in fiscal health, it is the second least timely state to release its financial report for fiscal 2020. As of September 15, Iowa had not released a verified copy of its report for fiscal 2020, according to a press release from Truth in Accounting that The Center Square received.
California has not released its report for fiscal 2020, according to the report. Illinois, the third least opportunistic state, released its report 408 days after fiscal year-end. North Dakota (163 days), Minnesota (168 days), Wisconsin (174 days), and Nebraska (170 days) met the Government Finance Officers Association standard for states, which is 180 days after at the end of an exercise. The national average for the release of fiscal year 2020 financial reports was approximately 211 days.
“This is the latest state governments have released their annual reports in the 12 years we’ve surveyed states,” the report said. âThe COVID-19 pandemic may have contributed to the delays as most state government employees have shifted to work-from-home schedules. “
The top three indebted states were:
â¢ Connecticut: by tax burden of $ 62,500
â¢ New Jersey: by tax burden of $ 58,300
â¢ Illinois: charge per taxpayer of $ 57,000
The average burden on taxpayers in the 50 states was $ 9,300 in fiscal 2020, down $ 2,000 from the previous year.
The most fiscally sound states were:
â¢ Alaska: surplus of $ 55,100 per taxpayer
â¢ North Dakota: excess of $ 39,200 per taxpayer
â¢ Wyoming: surplus of $ 19,500 per taxpayer
Nationally, most government debt arises from promises of unfunded pension benefits, such as pension liabilities and retiree health care. For 2020, pension debt was $ 926.3 billion and other post-employment benefits (OPEB), primarily retiree health care, was $ 638.7 billion.