Sunday, November 05, 2023

Tennessee is a top five "Sunshine State."

Truth in Accounting ranks Tennessee 5th best state for Financial Health. 

by Rod Williams, Nov. 5, 2023- Truth in Accounting has releases its fourteenth annual Financial State of the States report, a comprehensive analysis of the fiscal health of all 50 states based on fiscal year 2022 annual comprehensive financial reports, the latest available data.  

Truth in Accounting is a 501(c)(3) nonprofit, nonpartisan organization composed of business, community, and academic leaders interested in improving government financial reporting. TIA makes no policy recommendations beyond improvements to budgeting and accounting practices that will enhance the public’s understanding of government finances.

Much of government accounting appears designed to mislead rather than illuminate. Often transparency is lacking. Often governments hide liabilities. This is especially true of pension obligations. Truth in Accounting recommends FACT-based budgeting and accounting, which stands for full accrual calculations and techniques (FACT). FACT-based budgeting and accounting moves beyond cash-basis to provide more accurate and truthful budgeting and financial reporting documents. It is the gold standard in accounting.

The financial health of the various states varies widely. According to the report, at the end of fiscal year 2022, 28 states did not have enough money to pay all of their bills. TIC calls the states that lacked the necessary funds to pay their bills Sinkhole States, while those with enough money are referred to as Sunshine States. TIA highlights the top five sunshine states and the least financially bottom five states. This year, Tennessee made the grade as a top five Sunshine State.

The top five Sunshine states are: 

1. Alaska
2. North Dakota
3. Wyoming
4. Utah
5. Tennessee
The Bottom five Sinkhole states are:
46. Hawaii
47. Massachusetts
48. Illinois
49. Connecticut
50. New Jersey

Below is the TIA report on Tennessee: 

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