N.C. has run up less taxpayer debt than most states, financial watchdog says | Beaufort County Now | One of the nation’s leading financial watchdogs says North Carolina has fared better than most states in terms of balancing its budget, but the picture isn’t all rosy as the state has an average debt burden of $1,400 per taxpayer.

Coronavirus Disease 2019 (COVID-19)
Publisher's Note: This post appears here courtesy of the Carolina Journal. The author of this post is Johnny Kampis.



    One of the nation's leading financial watchdogs says North Carolina has fared better than most states in terms of balancing its budget, but the picture isn't all rosy as the state has an average debt burden of $1,400 per taxpayer.

    In its annual report, Chicago-based Truth in Accounting ranks North Carolina 14th in the U.S. in fiscal health. It determines taxpayer burden by taking the money each state has to pay its bills and divides that by the estimated number of state taxpayers. Eleven states show surpluses after TIA crunches the numbers. While North Carolina isn't one of them, its debt is lower than all but two of the remaining 39 states.

    "It's almost a success story, as much as you can find one in state and local governments," TIA's director of research Bill Bergman told Carolina Journal in giving the state faint praise.

    TIA found that North Carolina shows a debt burden of $4.3 billion, with most of that debt related to pension and retiree healthcare benefits - a common issue in most states. North Carolina has set aside 86 cents for every dollar of promised pension benefits and only 8 cents of every dollar needed for retiree health care benefits, according to TIA.

    Still, the Tar Heel State finds itself in much better shape than others, including TIA's home base of Illinois, which shows an average taxpayer burden of $57,000, according to the research.

    Bergman noted that in 2010, during the tail end of the Great Recession, North Carolina showed an average taxpayer burden of about $8,000, but has seen its situation steadily improve over the past decade. This chart shows that while the average taxpayer burden across the U.S. has remained relatively consistent since 2010, North Carolina's finances have made significant positive strides.

    "That's a sign they do walk the talk on balancing the budget, unlike states like Illinois and New Jersey," Bergman said. "Even so, North Carolina has run up a debt on the taxpayers' backs, but compared to other states it's in great shape."

    TIA's report says that although all states received federal aid from the CARES Act and other grants related to COVID-19 relief in 2020, the majority of states' finances worsened in the past fiscal year with a total nationwide debt of $1.5 trillion. The average taxpayer burden across all 50 states was $9,300, about $2,000 worse than in fiscal 2019.

    Alaska found itself in the best financial situation, with an average taxpayer surplus of $55,100.

    The data used in the study comes from annual comprehensive financial reports and retirement plan reports.
Go Back

HbAD0

Latest Op-Ed & Politics

The New York Times was forced to issue multiple, major corrections for an article published on Wednesday that falsely claimed 900,000 children had been hospitalized for COVID-19 since the start of the pandemic.
As a youth growing up in a United States of America that understood the pain of sacrifice, the remembrance of Pearl Harbor was an annual event.
If data from September regarding women and the economy becomes a trend, Joe Biden and the Democrats may have even more trouble in 2022 in the midterm elections.
With an ever-expanding federal government, the U.S. has fallen out of the top five countries for economic freedom, according to a new report from the Fraser Institute.
Fauci ‘sabotaged early treatment'

HbAD1

A city’s supposed attempt to make faces on a mural not “specifically identifiable” ended up depicting a black firefighter as white, and now she’s suing for defamation and negligence.
Many North Carolinians breathed a sigh of relief last week when the GOP-led legislature and Democratic Gov. Roy Cooper came to terms on a budget for the new biennium.
The North Carolina Court of Appeals on Monday morning issued an order temporarily suspending candidate filing for all U.S House of Representatives, N.C. Senate, and N.C. House contests.
Given the enormity of the public and private investment in US higher education, of course we should evaluate its effectiveness. But, how?
Ana Kasparian, a cohost of the popular progressive online news show “The Young Turks,” offered a strong defense of her debate with Daily Wire editor emeritus Ben Shapiro this week, calling out the Left for “platform scolding.”
Having trouble getting a hair appointment or other services? There are three bills sitting in the Senate Rules Committee that sponsors say would loosen bureaucratic red tape for some small service businesses.

HbAD2

 
Back to Top