Illinois ranks near the bottom of a new analysis of state finances across the U.S.
Truth in Accounting’s 13th annual Financial State of the States ranked Illinois 48th in the country, the same rank as last year. Only two other states, New Jersey and Connecticut, graded worse than Illinois for fiscal health. The review is of the states’ fiscal year that ended June 30, 2021.
The report notes that Illinois had about $39 billion available to pay nearly $250 billion worth of bills, a shortfall that breaks down to a burden of $49,500 per taxpayer. As a result, the state receives an “F” grade for its state finances.
Truth in Accounting noted that Illinois was extremely tardy when releasing its annual financial report. Illinois released its report more than 356 days after the end of the fiscal year, when the standard for timeliness is 180 days.
The report says Illinois’ financial problems stem mostly from unfunded public employee retirement obligations. Christine Kuglin, director of the Truth in Accounting Project at The University of Denver, said 2021 was beneficial for pension returns, but things have taken a turn for the worse.
“Those are subject to the same types of market fluctuations that we who have our own private pension funds, the governments are the exact same,” Kuglin said.
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