Of the 50 U.S. states, 24 don’t have enough money to cover their bills. Meanwhile, one under-the-radar red state stands apart from the rest, according to a new analysis of state finances.
North Dakota ranked No. 1 in Truth in Accounting’s 2026 Financial State of the States report, ending fiscal year 2025 with $21 billion more than it needed to pay the state’s bills. That financial cushion gave North Dakota the highest „Taxpayer Surplus“ in the country at $72,300.
The taxpayer surplus figure does not mean that the state’s residents receive that amount of money back in their pockets at the end of the year — rather, it represents each taxpayer’s share of the state’s surplus under the group’s methodology.
The divide between the states with surplus versus those with burden matters, especially when the economy weakens. States with stronger balance sheets have more room to weather downturns, maintain public services and meet retirement obligations, while states carrying large unfunded debts can face tougher choices over taxes, spending and borrowing when revenues fall.
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North Dakota’s financial position was bolstered by its Legacy Fund, a state investment fund built with oil tax revenue.
Although oil, gas and coal tax revenues declined amid lower energy prices, strong investment earnings and federal grant revenue helped offset the drop, according to the report.
North Dakota was followed in the rankings by Alaska, Wyoming, Utah and Tennessee. The five states all had taxpayer surpluses ranging from $11,400 in Tennessee to topping out in North Dakota with $72,300. Those handful of states’ financial position stands in sharp contrast to nearly half the country.
The report found that 24 states did not have enough available assets to cover their financial obligations.
New Jersey ranked last, with a $162.3 billion shortfall. Truth in Accounting translates that gap into a $45,800 „Taxpayer Burden,“ the highest in the country. Connecticut ranked 49th, followed by Illinois, Massachusetts and California.
The bottom five states had taxpayer burdens ranging from $16,000 in California to $45,800 in New Jersey.
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Long-term retirement obligations are a major source of pressure on state finances.
Across the country, states had $775 billion in unfunded pension liabilities and $490 billion in unfunded retiree health care obligations in fiscal 2025, according to the report.
Despite those shortfalls, most states improved financially in 2025. Strong investment returns boosted pension assets and helped reduce unfunded pension obligations, though Truth in Accounting cautioned that those gains can reverse when markets fall.
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This sparsely populated red state quietly climbed to the top of America’s financial rankings 2026
IUSTITIA.BG – Investigations 2009-2026 2026-10-15 10:39:58
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