If Louisiana was suddenly forced to payoff all of its debts, it would cost every state taxpayer $15,500. Which is why the state got a “D” grade and ranks 36th out of 50 states in a recent analysis conducted by Truth in Accounting, an organization that provides annual assessments of state financial information.
State elected officials have made repeated financial decisions that have left Louisiana with a debt burden of $19.7 billion, the study found, as the state only has $15.9 billion in assets to pay $35.6 billion worth of bills. Given the state’s balanced budget mandate, TIA argues Louisiana should be debt-free.
The root of the financial problems is mostly unfunded retirement obligations that have accumulated over many years. Of the $34.2 billion in retirement benefits promised, the state hasn’t funded $9.6 billion in pension and $7.4 billion in retiree health care benefits.
Government officials have failed to disclose significant amounts of retirement debt on the state’s balance sheet, the financial report reads, with auditors finding some financial data was not presented in accordance with generally accepted accounting principles.
Overall, Louisiana, ranking behind neighboring Texas and Mississippi on the list, is one of 40 states without enough money to pay its bills. It’s also one of more than 15 states receiving a “D” grade because its taxpayer burden is between $5,000 and $20,000.
Gov. John Bel Edwards’ office could not be reached for comment prior to publication.
