25 states were unable to cover all their financial obligations at the end of fiscal year 2024, which for most states ended 30 June, per the annual State of the States report. While every state but Vermont mandates a balanced budget, elected officials often exclude certain costs such as future pension obligations and deferred maintenance from their budget calculations. "This practice essentially shifts these financial responsibilities onto future taxpayers, leaving them to cover the expenses that should have been accounted for in the current budget," the Truth in Accounting report states. In total, calculated states hold $2.2 trillion in assets and $2.9 trillion in debts. At $832 billion, unfunded pension obligations are the largest driver of state debts. The top "sinkhole states" are New Jersey, Connecticut, Illinois, Massachusetts, and California. The top surplus states are North Dakota, Alaska, Wyoming, Utah, and Tennessee.
