Center for Truth in Accounting outlines financial state of New Mexico

The folks at the Center for Truth in Accounting keep an eagle eye on state government finances. They have released a new report on “The Financial State of New Mexico.”

A few key findings from the detailed report on New Mexico: researchers found that New Mexico did not report 99 percent — or $7.5 billion worth — of its retirement debt on the state’s balance sheet.

New Mexico only reported $58.57 million in retirement and health care benefits yet owes approximately $7.5 billion. Because the state government uses outdated accounting methods, a vast majority of liabilities are excluded from its financial reporting.

When TIA researchers included the $7.5 billion of hidden debt, they discovered that New Mexico:

● owes $12.5 billion in bills;

● has $7 billion available to pay bills; and

● needs $5.5 billion to pay bills.

If New Mexico’s $5.5 billion of debt were divided among its taxpayers, each taxpayer’s personal share would be $9,700.

In 2014, New Mexico received the organization’s “Tortoise Award” for being so slow in producing its financials.

As seen below, New Mexico taxpayers face significant burdens. According to the organization, each taxpayer’s financial burden (surplus)’ is the money needed (available) to pay bills divided by the number of state taxpayers.” This is the approximate amount required of each taxpayer in order to pay the State’s obligations today.

 

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