https://www.realclearpolicy.com/articles/2021/12/22/the_50_states_total_debt_just_surpassed_15_trillion_808467.html
The debt of all 50 states totaled $1.5 trillion at the end of 2020, severely underfunding pensions and other postemployment benefits. That’s according to Truth in Accounting’s 12th annual Financial State of the States report, which ranks states based on their financial status.
This year’s surveys the fiscal health of the 50 states during the beginning of the Covid-19 pandemic.
The five best states were Alaska, North Dakota, Wyoming, Utah, and South Dakota, while the five worst were Hawaii, Massachusetts, Illinois, New Jersey and Connecticut.
At the end of 2020, 39 states didn’t have enough money to pay their bills, the report found.
Collectively, the 50 states’ unfunded pension liabilities were $926.3 billion.
That means for every $1 of pension benefits promised to its workers, states have only set aside 64 cents on average.
That becomes a problem when enough workers retire to exhaust the pension savings and states can no longer can cut pension checks.
On top of that are other postemployment benefits, or OPEB, for which the 50 states underfunded by $638.7 billion.
For every $1 of those promised benefits, mostly for retiree health care, states have only set aside 8 cents on average.
Unsurprisingly, even with federal assistance, state debt got worse at the beginning of the Covid-19 pandemic and the short recession that followed in early 2020.