South Carolina ranked no. 36 for fiscal health

A new report on the financial condition of the 50 states ranked South Carolina no. 36 for its fiscal health in fiscal year 2023. The report found that 27 states did not have enough money to pay their bills at the end of fiscal year 2023. South Carolina’s finances improved overall, but the state still did not have enough money to cover its bills.

The analysis by Truth in Accounting, a nonprofit government finance watchdog group, found South Carolina needed $14.4 billion to pay its bills. This means that each South Carolina taxpayer would have to pay $7700 to get the state out of debt, which is why it received a “D” grade for its fiscal health.

The information uncovered in this report, which is based on the states’ latest audited financial report, not only affects the general taxpayer, but also teachers, firefighters, police officers, and any state employee planning to collect retirement funds from the state. Unfunded pensions and other post-retirement benefits continued to impair the state’s ability to pay its bills. The stock market significantly influences government debt reporting; during strong market performance, the value of pension systems’ investments can make state debt seem lower.