8/11/2019 Md Fsos 2013
1/2
THE 14th WORST STATE
MARYLAND IS ASINKHOLE STATE
The St
Owe
$45.3 bil
The State
Owns
$15.9 billion
THE STATE'S BILLSEXCEED ITS ASSETS
The state of Maryland is sinking in deState's $29.4 billion
shortfall reprecompensation and other costs that
been pushed into the future.
Each Taxpayer's Share of TFinancial Burden is $14,20
Maryland statutes require the legislapass a balanced budget. One
of the r
Maryland is in this precarious finaposition is state officials
use antiq
budgeting and accounting rules to rMarylands financial
condition. Semployee retirement benefits are
immediately payable in cash, the recompensation costs have been
ignore
calculating balanced budgets.
Number of taxpayers is based on the number of
federal tax filers with a tax liability.
2014 Truth in Accounting
te 77% OF RETIREMEARE NOT CLEARL
ion
Truth in Accounting's detailetotal of $29.8 billion of
retirepromised but not funded. Beway the State does its accounthese
liabilities are reportedsheet.
bt. The ents
have Truth in Accounting is co
governments to provide ctransparent financial info is
We call on governments ttheir budgets by includinexpenses when
incurred
ture to easons
cial ated
eport nce
not lated
d when
To be knowledgeable pargovernment and its budgto be provided
with truthfinancial information.
Data is derived from the state of Maryla
Comprehensive Annual Financial Repor
reports.
Maryland
www.
Unreported
RetirementLiabilities$22.9
T LIABILITIES Y DISCLOSED
analysis discovered a ent benefits have bee
ause of the confusing ing, only $6.9 billion o n Maryland's
balance
(in billions)
mitted to compelling itizens with truthful an
rmation.
o truthfully balance all real and certain
ot when paid.
icipants in their State t process, citizens nee
ul and transparent
nd's June 30, 2013 audited
t and retirement plans' actuar
ruthinaccounting.org
www.statedatalab.org
Reported
etirementiabilities$6.9
8/11/2019 Md Fsos 2013
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The Financial State of MarylandThe Bills the State Has
Accumulated
As of June 30, 2013State Bonds $18,032,146,0
The State's Bills Exceed Its AssetsOther Liabilities
$7,950,471,0
Less: Debt Related to Capital Assets $10,499,176,0
Assets $51,134,509,000 Unfunded Pension Benefits
$20,993,485,0
Less: Capital Assets $31,416,064,000 Unfunded Retirees'
Health
Restricted Assets $3,807,008,000 Care Benefits $8,791,856,0
Assets Available to Pay Bills $15,911,437,000 Bills
$45,268,782,0
Less: Bills $45,268,782,000
Despite the balanced budget requirement, the Statehas
accumulated bonds of $18 billion and otherliabilities of $8
billion. The calculation of assetsavailable to pay bills does not
include capital assets,so $10.5 billion of related debt is removed
from thecalculation of State bills.
Money Needed to Pay Bills $29,357,345,000
Each Taxpayer's* Burden $14,200
The state of Maryland has $51.1 billion inassets, but most of
these assets are notavailable to pay State bills.
Unfunded employees' retirement benefits represent66% of State
bills. These unfunded liabilities haveaccumulated because State
employees have beenpromised $21 billion of pension benefits and
$8.8billion of retirees' health care benefits, but the Statehas not
adequately funded them.
The $31.4 billion of capital assets, such asroads, buildings,
and land should not be soldto pay bills. The use of $3.8 billion of
theassets is restricted by law or contract.
That leaves $15.9 billion of State's assetsavailable to pay
$45.3 billion of bills as theycome due.
Unless these pension and retirees' health care benefare
renegotiated, future taxpayers will be burdenedwith paying for
these benefits without receiving anycorresponding government
services or benefits.
The $29.4 billion shortfall represents
compensation and other costs incurred inprior years that should
have been paid inthose prior years. Instead these costs havebeen
shifted to future taxpayers. All Retirement Liabilities
Are Not Clearly Disclosed
Today Each Taxpayer Owes $14,200 Reported Retirement Liabilities
$6,922,854,0
Unreported Retirement Liabilities $22,862,487,0
Number of taxpayers is based on the number of Maryland
federal tax filers with a tax liability.Total Retirement
Liabilities $29,785,341,0
A detailed study of Maryland's actuaries' schedules
found retirement benefits totaling $29.8 billion havebeen
promised, but not funded. A review of theState's balance sheet
determined only $6.9 billion ofthese liabilities are reported. This
means the Statedoes not report $22.9 billion of retirement
liabilitieson its balance sheet.
Data is derived from the state of Maryland's June 30, 2013
audited Comprehensive Annual Financial Report and
retirement plans' actuarial reports.
www.statedatalab.org 2014 Truth in Accounti
www.truthinaccounting.org
