Financial Freefall: New Jersey Hits Rock Bottom in Truth in Accounting Report, Taxpayers Left to Bear the Burden

In the 13th annual Financial State of the States report by Truth in Accounting, New Jersey has found itself at the bottom of the list in terms of the financial health of its state government. The report's alarming findings reveal the significant financial challenges faced by the Garden State. Join us as we delve into the details of this report, shedding light on New Jersey's position and the implications it holds for the state and its taxpayers.

According to the report, New Jersey would require a staggering $58,700 from each taxpayer to settle all of its outstanding bills. This places the state in a precarious financial position, as it has consistently ranked near the bottom of the list in every edition of the report. What's more, New Jersey was the only state to witness a decline in its financial condition over the past year.

Truth in Accounting's analysis uncovered a substantial increase of over $12.5 billion in the funds required to meet the state's financial obligations. Meanwhile, New Jersey only had $43.4 billion available to cover a whopping $241.1 billion worth of outstanding bills. This significant disparity raises concerns about the state's ability to manage its financial responsibilities effectively.

The report also highlighted that New Jersey's pension plan assets experienced short-term increases in value, but the state's portion of the Net Pension Liability grew due to assuming new pension responsibilities from local governments. This further compounds the financial strain faced by the state.

Interestingly, New Jersey swapped positions with Connecticut, which moved up to the 49th spot in the rankings. Meanwhile, New York claimed the 42nd position on the list, suggesting that multiple neighboring states face their own financial challenges.

At the end of the fiscal year 2021, the report revealed that 31 states lacked sufficient funds to cover all their bills. This implies that elected officials, in an attempt to balance budgets as required by law in 49 states, have not included the true costs of government operations in their calculations. This practice effectively transfers financial burdens onto future generations of taxpayers.

When evaluating the overall grades assigned by the report, only three states received A's, while 16 received B's, 11 received C's, and a concerning 14 states received D's. Shockingly, six states received failing grades, signifying the severity of their financial predicaments.

The collective debt of all 50 states amounts to a staggering $1.2 trillion, underscoring the gravity of the financial challenges faced nationwide.

The Truth in Accounting report paints a troubling picture of New Jersey's financial health, placing the state at the bottom of the list in terms of its state government's financial condition. The significant amount of money required from each taxpayer to settle outstanding bills raises concerns about the state's ability to effectively manage its financial obligations. As New Jersey grapples with these challenges, it becomes crucial for policymakers and elected officials to address these issues proactively and seek sustainable solutions to alleviate the financial strain on the state and its taxpayers.

Source: truthinaccounting.org