A new report on the financial condition of the 50 states ranks South Dakota no.7 in the nation. The report is based on the states’ 2018 comprehensive annual financial reports, the most recent data available.
The analysis by Truth in Accounting, a non-profit government finance watchdog group, found South Dakota has $3.2 billion in assets available to pay future bills. This surplus equates to $2,800 for each state taxpayer.
South Dakota and other states have become more transparent over the last few years, thanks to the Generally Accepted Accounting Principles set by the Governmental Accounting Standards Board, which now require governments to disclose pension and other post-employment (OPEB) benefits on their balance sheets. If these benefits have not been fully funded, they are considered liabilities, or debt, because they represent money owed to government employees in their retirement.
According to the watchdog’s tenth annual Financial State of the States report, South Dakota has $2.4 billion in bills and $3.2 billion in available assets to pay those bills after capital and restricted assets are excluded. This results in a $846.9 million surplus, or a $2,800 Taxpayer Surplus™, which is each taxpayer’s share of the state surplus after bills have been paid. TIA’s Taxpayer Surplus indicator incorporates both assets and liabilities, including unfunded retirement obligations.
The bottom line is that South Dakota hypothetically could write a check for $2,800.00 to each of its taxpayers after paying all of its bills, which is why it received a “B” grade for its fiscal health.
You can read the full report here and South Dakota’s individual report here.