Truth in Accounting’s (TIA) latest Financial State of the States report highlights how Iowa is one of only a few states financially able to pay off all its bills.
The annual analysis says the state racked up $8.5 billion in bills but has $9.3 billion to pay them. The report also gave the state a “B” grade for its financial stability.
This is in contrast to 40 other states that have more debt than money in the bank, largely due to unaffordable pension and post-employment benefit costs. These states utilize taxpayers' money to pay off its debts.
While the national average tax burden rounds up to $8,400, nine states have per taxpayer burdens greater than $20,000, according to the report.
Iowa’s strong financial standing has left it with an annual tax surplus of $700 for each taxpayer. The surplus is calculated by the amount of leftover funds after all state dues are paid divided by an estimated number of state taxpayers.
TIA awards states a “B” if they have a tax surplus between $100 to $10,000.
The bills Iowa has to pay off include $5.2 billion in bonds, a $2.2 billion debt in capital assets, $1.3 billion in unfunded pension benefits, $434 million in unfunded retiree health care and $3.8 billion in other liabilities.
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