We tend to talk a lot about the federal debt — and for good reason! — but there are reasons for concern on the state level, too.
A recent report on the amount of debt at the level is very sobering. The report looked at regular debt, the 2013 fiscal year budget gap, outstanding unemployment trust fund loans, unfunded benefit liabilities, and unfunded pension liabilities, and showed that for all of the proud words of the governors who spoke at the Republican and Democratic conventions, many states are drowning in debt. California is in the worst shape, with a stunning $617 billion in debt, followed by New York ($300 billion), Texas ($287 billion), Illinois ($271 billion) and New Jersey ($258 billion). Ohio, unfortunately, stands sixth with $239 billion in debt. The state in the best shape is Vermont, with only $5.8 billion in debt — less than 1/100th of the amount owed by California.
In all, states are laboring under a crushing $4 trillion in debt. It’s just another reminder that the flood of red ink is found across our country — and that it’s high time we start doing something about it.