Report: State Debt, Deficits Growing

August 18, 2008

The combination of bonded debt, budget deficits, and unfunded pension obligations increased in 35 of the 50 states as of the end of fiscal year 2007, and probably will be even higher this year as economic conditions have worsened and continue to deteriorate, Loop Capital Markets said in a report issued this week. The report, which the firm releases each year, focuses on states’ “economic debt,” an umbrella term that it uses to cover states’ net bond debt, unfunded pension obligations, and budget deficits, if applicable. This latest report shows that, of the 35 states with increases, 13 states’ economic debt rose more than 50% from the previous year.

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