Report: Ohio taxpayers hold a $1,600 individual burden
(The Center Square) – Ohio would need $1,600 from every taxpayer in the state to pay off all of its bills, a figure worse than a year ago, according to a new report released Thursday.
Ohio ranked 28th and was given a “C” grade with a $1,600 burden 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).
Ohio had $70.2 billion available to pay $77.6 billion worth of bills, according to the report. The state’s financial condition worsened in 2023 when it received a grade of “B” and had a $200 surplus per taxpayer.
The report blames the fall on a substantial decrease in its pension investment. It also said the difference between a fiscal year-end date of June 30, 2023, and a net pension liability measurement date of Dec. 31, 2002, contributed to the downfall.
“When other states measured their net pension liabilities at June 30, 2023, the pension investment markets had turned more favorable,” the report said. “This highlights how the volatility in the markets can affect a state’s unfunded pension debt and financial conditions.”
The most recent report bucked an Ohio trend of improvement from 2017 through 2023.
In 2017, Ohio taxpayers felt an individual burden of more than $6,000, which steadily decreased each year, ending with a surplus in 2022.
