South Carolina Gets A "D" For Its State Finances

A new report on the financial condition of the 50 states ranks South Carolina no. 36 in the nation for its fiscal health. 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 South Carolina needs $21.8 billion to get out of the red, or $14,500 from each of its taxpayers.

South Carolina 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, South Carolina has $42.1 billion in bills and only $20.4 billion in available assets to pay those bills after capital and restricted assets are excluded. This results in a $21.8 billion shortfall, or a $14,500 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.

The bottom line is that South Carolina does 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.