Florida State Finances Receive a Grade of “C”

Florida state finances slid deeper into the red in 2016. Repeated decisions by state officials have left the state of Florida with a significant debt burden of $9.9 billion, according to Truth in Accounting's (TIA) analysis of Florida's most recent financial filings. That burden equates to $1,600 for every Florida taxpayer, which is $500 worse than it was in 2014 and 2015.

These statistics are troubling, but what's more troubling is that state government officials continue to obscure large amounts of retirement debt on their balance sheets, despite new rules to increase financial transparency. This skewed financial data gives state residents a false impression of their state's overall financial health.

Truth in Accounting is a Chicago-based nonprofit think tank that analyzes state financial reports when they are published. According to its report for 2016, Florida has $61.4 billion of assets available to pay $71.3 billion worth of bills. This means that the state has a $9.9 billion shortfall and a $1,600 taxpayer burden™, which is each taxpayer's share of state bills after its available assets have been tapped. TIA's Taxpayer Burden™ measurement incorporates both assets and liabilities, not just pension debt.

Because of an accounting rule implemented last year, Florida had to report its pension debt on its balance sheet. This year, the state's reported pension debt grew from $4.2 billion in 2015 to $6.6 billion in 2016. Despite reporting most of its pension debt, the state continues to hide most of its retiree health care debt. Florida's total hidden debt amounts to $9.1 billion. A new accounting standard will be implemented in two years that will require states to report this debt on the balance sheet.

The bottom line is that Florida would need over $1,500 from each of its taxpayers to pay all of its bills, so it has received an “C” for its finances. In addition, the state's financial report was released 225 days after its fiscal year end, which is considered untimely according to the 180 day standard.

See how Florida compares to Georgia, Louisiana and South Carolina: http://www.statedatalab.org/c/WhtPbtKd2440388
Click on the link to go to an interactive chart at Truth in Accounting’s State Data Lab.