Nebraska Gets A "B" For Its State Finances

A new report on the financial condition of the 50 states ranks Nebraska no.8 in the nation. The report is based on the states’ 2018 comprehensive annual financial reports, the most recent data available.

The analysis by Truth in Accounting, a non-profit government finance watchdog group, found Nebraska has $4.2 billion in assets available to pay future bills. This surplus equates to $2,000 for each state taxpayer.

Nebraska and other states have become more transparent over the last few years, thanks to the Generally Accepted Accounting Principles set by the Governmental Accounting Standards Board, which now require governments to disclose pension and other post-employment (OPEB) benefits on their balance sheets. If these benefits have not been fully funded, they are considered liabilities, or debt, because they represent money owed to government employees in their retirement.

According to the watchdog's tenth annual Financial State of the States report, Nebraska has $2.9 billion in bills and $4.2 billion in available assets to pay those bills after capital and restricted assets are excluded. This results in a $1.3 billion surplus, or a $2,000 Taxpayer Surplus™, which is each taxpayer's share of the state surplus after bills have been paid. TIA's Taxpayer Surplus indicator incorporates both assets and liabilities, including unfunded retirement obligations.

The bottom line is that Nebraska hypothetically could write a check for $2,000.00 to each of its taxpayers after paying all of its bills, which is why it received a "B" grade for its fiscal health.

You can read the full report here and Nebraska's individual report here.