South Carolina received ‘D’ for fiscal health

A new report on the financial condition of the 50 states ranked South Carolina no. 39 for its fiscal health in fiscal year 2020. The report found that the majority of the states were ill-prepared for any crisis and that despite federal aid, state debt worsened during the onset of the pandemic.

The analysis by Truth in Accounting, a non-profit government finance watchdog group, found South Carolina needed $27.8 billion to pay all of its bills, or $18,700 from each of its taxpayers.

According to the watchdog's twelfth annual Financial State of the States report, South Carolina had $47.9 billion in bills and only $20.1 billion in available assets to pay those bills after capital and restricted assets were excluded. This resulted in a $27.8 billion shortfall, or a $18,700 Taxpayer Burden, which is each taxpayer's share of the state debt after the state’s available assets have been tapped. TIA's Taxpayer Burden indicator incorporates both assets and liabilities, including unfunded retirement obligations.

South Carolina was not alone; total debt among the 50 states amounted to $1.5 trillion at the end of the fiscal year 2020. The average Taxpayer Burden across the 50 states was $9,300 for fiscal year 2020, which is $2,000 worse than the prior year. Only 11 states had a Taxpayer Surplus for 2020.

The bottom line is that South Carolina did not have enough money to pay its bills, which is why it received a "D" grade for its fiscal health.

You can read the full report here and South Carolina’s individual report here.