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States With The Most And Least Debt In 2021

[vc_row][vc_column icons_position=”left”][vc_empty_space alter_height=”small” hide_on_wide=”” hide_on_desktop=”” hide_on_notebook=”” hide_on_tablet=”” hide_on_mobile=””][/vc_column][/vc_row][vc_row][vc_column icons_position=”left”][vc_column_text]2021 hasn’t been a good year for budgets, to put it lightly.

Whether it’s spending more than ever to stay alive or cutting costs to stay afloat, everyone has felt the strain, especially state governments.

To find out how much debt each state was carrying based on its total assets, total liabilities, postponed outflows of resources, and deferred inflows of resources, we looked at each state’s most recent Annual Comprehensive Financial Report (CAFR).

Deferrals are not assets or liabilities. They are also not revenues or costs. Revenues and expenditures are two distinct things, although they may be linked to the time period in which they occur.

Inflows and outflows of resources are related to a future time period.

A state’s net position is the sum total of its assets and unpaid or future outflows, plus those that are pending or owing.

Continue reading to learn which states have the most debt and which have the least in 2021.[/vc_column_text][vc_empty_space hide_on_wide=”” hide_on_desktop=”” hide_on_notebook=”” hide_on_tablet=”” hide_on_mobile=””][/vc_column][/vc_row][vc_row][vc_column icons_position=”left”][trx_sc_title title_style=”default” title_color=”#000000″ link_style=”default” title=”States with the most debt in 2021″][/vc_column][/vc_row][vc_row][vc_column icons_position=”left”][vc_line_chart x_values=”New York; California; Massachusetts; New Jersey; Illinois” values=”%5B%7B%22title%22%3A%22%24%20Billions%22%2C%22y_values%22%3A%22203.77%3B%20152.7%3B%2077%3B%2065.8%3B%2061.8%22%2C%22color%22%3A%22juicy-pink%22%7D%5D” animation=”easeOutQuart” css_animation=”none”][vc_empty_space hide_on_wide=”” hide_on_desktop=”” hide_on_notebook=”” hide_on_tablet=”” hide_on_mobile=””][/vc_column][/vc_row][vc_row][vc_column icons_position=”left”][vc_column_text]

1. New York

With total debt of more than $203 billion, New York is the most indebted state in the country.

With a debt ratio of 273.8%, New York has the highest level of indebtedness among all states.

New York’s huge debt is primarily due to excessive Medicaid spending.

In recent years, the state of New York has attempted to balance its budget by cutting funding for schools and health care.[/vc_column_text][vc_empty_space alter_height=”small” hide_on_wide=”” hide_on_desktop=”” hide_on_notebook=”” hide_on_tablet=”” hide_on_mobile=””][/vc_column][/vc_row][vc_row][vc_column icons_position=”left”][vc_column_text]

2. California

With overall liabilities of $362.87 billion, California is the country’s fifth-largest debt.

The state’s total assets are estimated at $301.1 billion, resulting in a net debt of $55.96 billion and a debt ratio of 120.5%.

California’s debts and liabilities may be classified as follows:

  • Retirement obligations.
  • Budgetary borrowing.
  • Bond debt.

However, California’s government debt now stands at more than $1 trillion as a result of combining federal, state, and local debt.

California’s debt would cost each resident $33,000 or each taxpayer $74,000.

3. Massachusetts

The state of Massachusetts has the fourth-highest debt in the country.

Massachusetts’s total liabilities are $104.53 billion, while its total assets are $34.214 billion, resulting in a debt of $68.43 billion.

Long-term liabilities in Massachusetts are presently 305.5% of total assets. The state’s most significant debt obligations are infrastructure and pension promises.

4. New Jersey

The second-greatest level of debt prevails in New Jersey.

The state’s total liabilities are $222.27 billion, compared to $198.67 billion in assets, putting it far ahead of the competition with net position $198 billion.

The state’s debt ratio is 441.7%, according to New Jersey’s Office of the State Comptroller.

The main cause of debt is the underfunded pension and benefit system for government workers.

Because of New Jersey’s debt and the increasing pressure to fund other programs like infrastructure and education, lawmakers are looking at tax hikes.

5. Illinois

Illinois has the third-highest debt in the United States, with overall liabilities totaling $248.67 billion.

Illinois has a debt ratio of 468.7%, which is the greatest in the United States. It has an unfunded liability of $187.7 billion with total assets of $53.05 billion.

This results in a debt to income ratio of 468.7%, which is the highest in the country. Every citizen is effectively responsible for $27,500 in debt.

In Illinois, the main issue contributing to the debt is billions of dollars owed to former government workers’ pensions and health insurance benefits, which is similar to New Jersey.[/vc_column_text][vc_empty_space hide_on_wide=”” hide_on_desktop=”” hide_on_notebook=”” hide_on_tablet=”” hide_on_mobile=””][/vc_column][/vc_row][vc_row][vc_column icons_position=”left”][trx_sc_title title_style=”default” link_style=”default” title=”States with the Least Debt in 2021″][/vc_column][/vc_row][vc_row][vc_column icons_position=”left”][vc_line_chart x_values=”Texas; Florida; North Carolina; Tennessee; Alaska” values=”%5B%7B%22title%22%3A%22%24%20Billions%22%2C%22y_values%22%3A%2250%3B%2028%3B16%3B%206%3B%205%22%2C%22color%22%3A%22blue%22%7D%5D”][vc_empty_space hide_on_wide=”” hide_on_desktop=”” hide_on_notebook=”” hide_on_tablet=”” hide_on_mobile=””][/vc_column][/vc_row][vc_row][vc_column icons_position=”left”][vc_column_text]

1. Texas

Texas has the lowest debt in the United States.

Texas’s liabilities total $222.64 billion, whereas its assets total $356.01 billion, giving Texas the highest net position in the country of $115.08 billion.

Texas’s debt ratio is 62.5%.

2. Florida

Florida’s debt is the second-lowest in the United States.

Florida’s net position is $97.6 billion, with liabilities of $66.78 billion and assets of $163.24 billion.

Florida’s debt ratio is 40.9%, according to the latest yearly data from the state.

Despite the fact that Florida’s debt has decreased in recent years, it is anticipated to increase over the next two years.

3. North Carolina

The state of North Carolina has a net position of $54.41 billion, making it the fourth-largest net position in the United States.

North Carolina’s assets have grown by $78.67 billion since the recession began.

Its overall liabilities are $23.62 billion, resulting in a debt ratio of 30%.

4. Tennessee

Tennessee has the fifth-lowest debt in the United States, with $8.04 billion in total liabilities and $46.54 billion in total assets, resulting in a net position of $39.3 billion and a debt ratio of 17.3%.

Tennessee is a highly tax-friendly state in the United States, and it will eliminate its state income tax by 2022.

Tennessee has tripled its Rainy Day Fund and given tax cuts to its residents, including a 30% reduction in-state sales tax on groceries, while remaining low-debt and low-tax.

5. Alaska

The state of Alaska has the third-lowest debt and the third-largest net position of $76.74 billion.

Alaska’s outstanding liabilities top $12.65 billion, whereas its overall assets amount to $89.17 billion.

Alaska does not levy a state income tax, but it is well-off from taxes levied on oil and gas production.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column icons_position=”left”][rrj_bar_chart title=”Per Capita Debt” labels=”New York; New Jersey; Illinois; Massachusetts; California; Texas; Florida; Alaska; North Carolina; Tennessee” stacked=”yes” stack_mode=”bars” datasets=”%5B%7B%22title%22%3A%22Per%20Capita%20Debt%22%2C%22tooltips_format%22%3A%22%7BState%7D%3A%20%7B%24%20Thousands%7D%22%2C%22values%22%3A%227.214%3B%207.422%3B%204.918%3B%2011.145%3B%203.856%3B%201.714%3B%201.313%3B%208.175%3B%201.524%3B%200.882%22%2C%22color%22%3A%22%23dd8d13%22%2C%22bar_bg%22%3A%22transparent%22%7D%5D”][/vc_column][/vc_row]

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