Idaho State Finances Receive a Grade of “B”

Idaho state finances are in relatively good shape, although not quite as good as they were last year. Elected officials have created a Taxpayer Surplus™, which is each taxpayer's share of the money available after state bills paid, according to Truth in Accounting's (TIA) analysis of Idaho's most recent financial filings. That surplus equates to $1,800 for every Idaho taxpayer, which is down from $2,400 in 2014 and 2015.

Idaho may be a Sunshine State because it has a taxpayer surplus, but what's 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, Idaho has $4.2 billion of assets available to pay $3.4 billion worth of bills. This means that the state has a surplus of $854.4 million available after bills have been paid, which breaks down to $1,800 per taxpayer. TIA's Taxpayer Surplus™ measurement incorporates both assets and liabilities, not just pension debt.

Because of an accounting rule implemented last year, Idaho had to report its pension debt on its balance sheet. This year, the state's reported pension debt grew from $207.9 million in 2015 to $364.1 million in 2016. Despite reporting most of its pension debt, the state continues to hide most of its retiree health care debt. The state's total hidden debt comes to $251.8 million. 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 Idaho has enough money to pay its bills, so it has received a "B" for its finances from Truth in Accounting. A "B" grade is given to states with a taxpayer surplus™ between $100 and $5,000. The state's financial report was released 176 days after its fiscal year end, which is considered timely according to the 180 day standard.

See how Idaho compares to Montana, Oregon, and Wyoming in 2015 and 2016: http://www.statedatalab.org/c/eEJiBK0I93936b5
Click on the link to go to an interactive chart at Truth in Accounting’s State Data Lab.