One week ago Illinois released the state’s audited annual financial report for fiscal 2013. Truth in Accounting announced that State Comptroller Judy Baar Topinka received one of the five most improved awards in the timely release of the state’s financial reports. This year’s report was issued 92 days earlier than last year’s.
Unfortunately the state continues to understate its poor financial condition.
On the Comptroller’s Web site, the “State of Illinois’ net position” is reported to be a deficit of $44.8 billion at June 30, 2013. This is a small increase from 2012. This reported net position relies on outdated accounting standards. The rules hide massive liabilities related to government employee retirement plans and other programs.
Truth in Accounting’s analysis determined Illinois actually needed $175 billion to pay all of its bills at fiscal year-end 2013. This is after accounting for the assets the state had available to pay bills. This amount is more than three times the ‘deficit’ amount reported by the state.
Source: Truth In Accounting
“Illinois Is a Sinkhole State,” Truth In Accounting: http://www.truthin2008.org/uploads/files/IL%202013.pdf