28 states couldn't cover their bills in fiscal 2022, while 22 states recorded surpluses…

[Ingomike]

“In fiscal 2022, 28 states didn’t have enough revenue to pay all of their bills, according to the 14th annual Financial State of the States report published by the Chicago-based nonprofit Truth in Accounting.”

“The report provides a comprehensive analysis of the fiscal health of all 50 states based on the latest available data from states’ fiscal year 2022 annual comprehensive financial reports.”

Report: 28 states couldn't cover their bills in fiscal 2022, while 22 states recorded surpluses

The other 49 states, besides Vermont, have laws that require their state legislature to produce a balanced budget.

justthenews.com

 

[BehindBlueI's]

Yay Indiana. One of the biggest reasons I continue to support a majority of (R) candidates at the state level is the seeming grasp of basic economics of an entity that's not allowed to create it's own currency.

 

[INP8riot]

Lmao. PA has a defecit?! My dad has 1.5 acres in rural western PA and pays $6000 in taxes a year. With that kind of income, how could they possibly screw that up?! Oh yeah...Fetterman.

 

[bobzilla]

Lmao. PA has a defecit?! My dad has 1.5 acres in rural western PA and pays $6000 in taxes a year. With that kind of income, how could they possibly screw that up?! Oh yeah...Fetterman.

BIL has a house just a tick bigger than ours on half the acreage outside of Philly. Hs taxes are better than Jersey at $14k per year.

 

[GodFearinGunTotin]

Just skimmed this but this one line stuck out (as I’ve heard this before, I guess): “The majority of state debt comes from retirement plans like pensions and retiree health care benefits. “

I don’t understand why these people should be any more exempt from taking hair cuts that any of the rest of us have had to face in the private sector from time to time.

 

[Cavman]

Sure our republican reps will say something like, see! This is why we need to keep raising your taxes so we have a surplus. More for me but not for thee!

 

[GodFearinGunTotin]

Sure our republican reps will say something like, see! This is why we need to keep raising your taxes so we have a surplus. More for me but not for thee!

Those bike paths aren’t going to build themselves.

 

[BigMoose]

Its Alaska that is the crazy one.

They don't have personal income taxes, in fact, its even reverse.. Alaska pays its people.

https://dor.alaska.gov/docs/default-source/press-releases/2023_09_21-dor-announces-2023-pfd-amount.pdf?sfvrsn=64fb8d05_1

They collect so much off the corporations that drill for oil, gas, and coal.. that pays for everything.

 

[tim87tr]

Just skimmed this but this one line stuck out (as I’ve heard this before, I guess): “The majority of state debt comes from retirement plans like pensions and retiree health care benefits. “

I don’t understand why these people should be any more exempt from taking hair cuts that any of the rest of us have had to face in the private sector from time to time.

Governments at all levels have said this for a long time. They're politicians and professional Liars. Especially since employess who stayed at one job their entire career contributed the fair share asked, into the system. The money was not placed into the pension systems as required by law. Now the broke government needs a scapegoat.

If people handled their own personal finances like governments, they'd be in court for fraud and be headed to jail. Exactly how is it sustainable long term to have a debt level that many states do? These broke states have a bunch of losers representing the people and no accountability for creating massive debt loads. Did the people not pay enough taxes?

 

[Ingomike]

Exactly how is it sustainable long term to have a debt level that many states do?

It is not! But it is just another manifestation of normalcy bias. An entity promises of money in the future to gain political support, the next group comes in, says worked for them, we will do it, and the next, and the next. It just keeps being rinsed and repeated.

It has gone on so long it is just normal and no one has yet had to pay for all those years. The politicians will do ANYTHING to keep the ole barge afloat…

 

[tim87tr]

It is not! But it is just another manifestation of normalcy bias. An entity promises of money in the future to gain political support, the next group comes in, says worked for them, we will do it, and the next, and the next. It just keeps being rinsed and repeated.

It has gone on so long it is just normal and no one has yet had to pay for all those years. The politicians will do ANYTHING to keep the ole barge afloat…

I agree and I don't think people/taxpayers notice because they're always looking to get something for free. Lots of handouts and incentives in so many areas to hide what's really going on. The governments keep dragging the carrot around for the rabbits. People are in a bad financial positition much like governments and are looking for the easy way out. Both playing the same dangerous debt game so it makes sense, yes, the normalcy bias.

IMO the barge is getting very close to sinking and the people will pay a terrible price at the state levels and especially at the Federal level. Fed level has had insane money printing of something like 7 trillion dollars the last few years, 30 or 40% of our fiat currency money supply. So they can print money and tax the out of people, then do their redistributions of wealth. Appears to be a template of Socialism to me.

 

[Ingomike]

IMO the barge is getting very close to sinking and the people will pay a terrible price at the state levels and especially at the Federal level.

And normalcy bias will likely show up even here to say it has never happened before why now?

 

[tim87tr]

And normalcy bias will likely show up even here to say it has never happened before why now?

It does appear that way since the days of quantitative easing starting in 08/09 has kept the system going. I see it analagous to someone with a credit card whose debt spirals out of control, adding more cards and paying off others with new cards. There is a hard end point timeline. It's a massive shell game which appears to becoming much closer to that end, which no one really knows when and how it occurs. Within the next couple years look ripe to me.

As with bankruptcy there is a reset for a new system. I'm not looking forward to that. The normalcy bias crowd will be the most or completely unprepared. Or maybe they'll have their debts erased going into a new system. Maybe that's the dream of broke government entites....on the other hand I actually doubt they think anything about massive debt loads.

What do you see in a big picture outlook moving forward? The Central State would not want the loss of authority in an anarcho-capitalistic type environment or Atlas Shrugged John Galt scenario.

 

[Ingomike]

It does appear that way since the days of quantitative easing starting in 08/09 has kept the system going. I see it analagous to someone with a credit card whose debt spirals out of control, adding more cards and paying off others with new cards. There is a hard end point timeline. It's a massive shell game which appears to becoming much closer to that end, which no one really knows when and how it occurs. Within the next couple years look ripe to me.

As with bankruptcy there is a reset for a new system. I'm not looking forward to that. The normalcy bias crowd will be the most or completely unprepared. Or maybe they'll have their debts erased going into a new system. Maybe that's the dream of broke government entites....on the other hand I actually doubt they think anything about massive debt loads.

What do you see in a big picture outlook moving forward? The Central State would not want the loss of authority in an anarcho-capitalistic type environment or Atlas Shrugged John Galt scenario.

When the crash occurs, I expect, the financial preparations will also be wiped out for most people. Retirement savings will be devalued and exchanged for “super social security” or some type of socialism system.

Our “free country” has lasted longer than any other free country in history. Our economic cycle has lasted longer than they typically do because the powers that be have for stalled the collapse with financial maneuvers that eventually will no longer work. But the normalcy bias is that they have and always will work.

As for debts of the people they may be paid back with worthless hyper inflation dollars further bankrupting the system.

 

[BehindBlueI's]

Just skimmed this but this one line stuck out (as I’ve heard this before, I guess): “The majority of state debt comes from retirement plans like pensions and retiree health care benefits. “

I don’t understand why these people should be any more exempt from taking hair cuts that any of the rest of us have had to face in the private sector from time to time.

Probably because we pay into the system, just like you pay into Social Security. Many of us pay into this *instead* of social security. But by all means, **** the workers over because the politicians keep reaching into the pie. I figure that'll definitely help continue to drive recruiting efforts for police, fire, etc. even further in to the gutter. Probably ought to do away with military pensions and VA benefits as well, given the cost of those.

 

[GodFearinGunTotin]

Probably because we pay into the system, just like you pay into Social Security. Many of us pay into this *instead* of social security. But by all means, **** the workers over because the politicians keep reaching into the pie. I figure that'll definitely help continue to drive recruiting efforts for police, fire, etc. even further in to the gutter. Probably ought to do away with military pensions and VA benefits as well, given the cost of those.

I paid into mine too. Still took a hair cut anyway. They just short changed us on the part they paid. It happens in the private world.

 

[BehindBlueI's]

I paid into mine too. Still took a hair cut anyway. They just short changed us on the part they paid. It happens in the private world.

Change the law so the executives and pension administrator are personally liable for any short fall and it'll stop happening in the private world. Instead of pushing to **** over more workers, maybe push for more accountability for decision makers. Difficult for CoC Republicans since they tend to be big business whores.

 

[amboy49]

Just skimmed this but this one line stuck out (as I’ve heard this before, I guess): “The majority of state debt comes from retirement plans like pensions and retiree health care benefits. “

I don’t understand why these people should be any more exempt from taking hair cuts that any of the rest of us have had to face in the private sector from time to time.

I suspect the bloated and underfunded pension plans are the result of the politicians approving pension benefits in order to cater to the unions for the police and other civil servants to buy votes. I would not be surprised to see cities like Chicago and many others having the same issues.

 

[Ingomike]

I suspect the bloated and underfunded pension plans are the result of the politicians approving pension benefits in order to cater to the unions for the police and other civil servants to buy votes. I would not be surprised to see cities like Chicago and many others having the same issues.

This is a MAJOR crisis, no surprise needed, Chiraq is among the worst.

Chicago’s Pension Debt Continues to Rise, Increasing $1.74 Billion in 2022 to $35.4 Billion: City Analysis

In all, Chicago owes $35.4 billion to its four employee pension funds representing police officers, firefighters, municipal employees and laborers, according to the 2022 Certified Annual Financial Report.

news.wttw.com

Report: Illinois, Chicago public pension crises worst in U.S.

Illinois state and local pension debt now tallies $218 billion with both debt to GDP and funding ratios the worst in the nation, according to a new Equable Institute report.

www.illinoispolicy.org

The time has come for real solutions to Illinois and Chicago’s grossly underfunded pensions

The five state pension systems collectively have a staggering unfunded liability of $139 billion, and Chicago’s unfunded liability of $35.4 billion.

chicago.suntimes.com

And you should know they want us through the feds to bail them out…

 

[Kdf101]

Bloated? I don’t know, I’m not in a position to say, but my big bet is on underfunded. As stated up thread, they take the money that is supposed to go into it and use it somewhere else. That is where my bet for most of the blame lies.