Report: R.I. taxpayer burden ranks 36th in U.S.

TRUTH IN Accounting reports Rhode Island is one of 40 "Sinkhole States," meaning they don't have enough assets to cover their debts. / COURTESY TRUTH IN ACCOUNTING
TRUTH IN Accounting reports Rhode Island is one of 40 "Sinkhole States," meaning they don't have enough assets to cover their debts. / COURTESY TRUTH IN ACCOUNTING

PROVIDENCE – Rhode Island’s debt ranks 36th in the nation, with a taxpayer burden of $14,200, according to Chicago-based Truth in Accounting, a nonprofit that aims to deliver transparent financial information from governments to citizens. The taxpayer burden represents the amount each taxpayer would have to pay to bring the state out of debt.

Although the ranking makes Rhode Island one of 40 “Sinkhole States,” meaning it does not have enough assets to cover its debt, it is the third highest ranking state in New England. At 26th, New Hampshire is the highest ranking in New England with a $5,400 taxpayer burden. Connecticut is not only the lowest ranked state in New England, but it is second-to-last in the nation at 49th with a $49,000 taxpayer burden.

TIA reports that Rhode Island only has $3.8 billion in available assets to pay bills totaling $8.9 billion. That means each taxpayer would have to come up with $14,200 to close the $5.2 billion gap. The state’s taxpayer burden rose by $700 from 2014.

While taxpayer burden figures may seem intangible, TIA believes they represent “the real cost that taxpayers will eventually have to pay,” whether in the form of higher interest rates, tax increases or fewer government programs.

- Advertisement -

With regard to reported state pension debts, in many cases there were dramatic increases. This is due to an accounting rule change that now requires states to report the full amount of existing pension debt. Previously states only had to report a portion of their pension debt. With the new rule in effect, Rhode Island’s reported pension debt grew to $3.2 billion in 2015 from $6.7 million in 2014.

TIA also tracks financial report timeliness. Rhode Island’s financial report was released 170 days after its fiscal year end, which is considered timely according to the 180-day goal, the report said.

With a surplus of $52,600 per taxpayer, Alaska has the lowest tax burden in the U.S. and ranks first on the list. It is one of 10 “Sunshine States,” or states that have enough money to pay their bills. North Dakota, Utah, Wyoming and Nebraska round out the top five.

In addition to Connecticut, the most financially troubled states include Massachusetts, Kentucky, Illinois and New Jersey, which has the highest taxpayer burden at $59,400.

No posts to display