Overview

• Truth in Accounting’s Financial State of the States 2025 report evaluates fiscal year 2024 and includes long‑term obligations such as pensions and retiree health care.
• The nonprofit calculates about $2.2 trillion in state assets versus $2.9 trillion in liabilities nationwide, with $832 billion in unfunded pensions as the largest driver of debt.
• The group reports 25 states lack enough resources to pay all obligations, identifying New Jersey, Connecticut, Illinois, Massachusetts, and California as the weakest performers.
• Tennessee earned an A grade with a $10,900 surplus per taxpayer and a 98% funded retirement plan, while Florida posted a $23.4 billion surplus and Virginia recorded a $21.1 billion surplus, both earning B grades.
• Louisiana’s shortfall totaled $16.3 billion and Mississippi’s reached $6.6 billion, and the report models sizable hits if federal aid reverts to 2019 levels, including potential reductions of $11.1 billion for Florida, $9.2 billion for Virginia, $8.4 billion for Louisiana, $4.3 billion for Tennessee, and $1.7 billion for Mississippi.