Report: Minnesota’s financial condition improved by $6B in 2023

(The Center Square) – Minnesota ranked 11th and was given a “B” grade with $1,000 of taxpayer surplus per taxpayer in Truth in Accounting’s Financial State of the States report.

Each year, the nonprofit group looks at the overall government finances in a state and measures the amount each state has on hand and owes in net pension liability compared to promised benefits.

The top states noted in the report are North Dakota with a taxpayer surplus of $55,600 and Alaska at $55,100. The lowest “sinkhole states” are New Jersey (negative $42,500) and Connecticut (negative $44,300).

Minnesota had $43.9 billion available to pay $28.9 billion worth of bills, according to the report. The state improved its financial condition in 2023 with $6 billion addition to pay its bills.

Minnesota received 56% of its funding from state taxes with 34% coming from federal aid and grants along with 8% from fees for goods and services and 2% from general revenue.

“Market fluctuations in pension values, coupled with uncertainty around inflation and employment, make it challenging to predict the future resources needed to sustain government services and benefits,” the report said. “In light of these uncertainties, it’s reassuring that the state has retained funds to cover its financial obligations.”