A Complete Study of Debt by State
Total debt by state has increased over the years. The debt by state will vary from state to state but spending data shows the debts include an amount in order to cover unfunded pension commitments, budget gaps, and outstanding bonds. Debt by state also increases to finance defense, health care, education, and other government spending allocations. The amount that can be borrowed by each state is also limited by the United States debt ceiling.
Debt in America: State By State
In general, state debt increases due to spending habits or a decrease can come from income sources, such as taxes. Historically, debts increase during times of war and recession and then usually decline. Debt per capita is dependent on debt levels, as well as the total population, but states that have high debts will usually have a higher debt per capita.
Some of the states with the highest debt are also states that have large populations and high gross rate products. These states are some of the richest states but have huge debt burdens. The states require large amounts to reimburse the debt each year and these factors into development and debt management. There are some states that have lower outstanding debt and these states are also some of the least populated states in the country.
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Impact Of Debt By State
Debt has adverse consequences on both the national and local level. High debt levels can lead to higher interest payments, which are then passed down to future taxpayers. High debts also leave minimum funds that are important for government programs. Growing debts can have direct impacts on the investment opportunities that are available to citizens.
What Is Debt Per Capita?
Debt per capita is a measure of how much debt the state has per each citizen. The formula is:
This is a useful metric when it comes to showing the total level of government debt. This is an important factor when it comes to analyzing the government’s ability to pay its current costs of service with its current levels of assets and tax revenues. This number can help show if the state has a high default risk on government bonds and can be an indication of overall economic growth for the state.
State Debt And Per Capita Debt
The states are listed in order, starting with the states with the most debt per capita.
| State | The Debt Total | Debt Per Capita |
|---|---|---|
| Massachusetts | $77,043,165,000 | $11,047 |
| Connecticut | $38,756,156,000 | $10,679 |
| Rhode Island | $8,932,377,000 | $8,191 |
| Alaska | $5,921,713,000 | $8,079 |
| New York | $139,234,923,000 | $7,141 |
| New Jersey | $65,874,095,000 | $7,117 |
| Hawaii | $9,656,278,000 | $6,737 |
| New Hampshire | $7,739,447,000 | $5,517 |
| Vermont | $3,502,960,000 | $5,413 |
| Illinois | $61,821,319,000 | $4,955 |
| Maryland | $28,027,363,000 | $4,554 |
| Delaware | $4,561,576,000 | $4,420 |
| West Virginia | $7,547,010,000 | $4,276 |
| Washington | $33,427,752,000 | $4,269 |
| Louisiana | $18,092,508,000 | $3,973 |
| Wisconsin | $23,252,381,000 | $3,938 |
| California | $152,772,292,000 | $3,926 |
| South Dakota | $3,527,703,000 | $3,820 |
| North Dakota | $2,885,664,000 | $3,697 |
| Pennsylvania | $47,519,575,000 | $3,675 |
| Maine | $4,750,384,000 | $3,409 |
| New Mexico | $7,057,656,000 | $3,345 |
| Georgia | $13.10 | $1,216. |
| Michigan | $33,463,604,000 | $3,336 |
| Virginia | $27,825,929,000 | $3,195 |
| Kentucky | $14,403,514,000 | $3,188 |
| Indiana | $21,842,716,000 | $3,188 |
| Oregon | $12,656,643,000 | $2,996 |
| Missouri | $18,419,751,000 | $2,978 |
| South Carolina | $15,744,638,000 | $2,931 |
| Colorado | $16,980,689,000 | $2,894 |
| Minnesota | $16,363,418,000 | $2,859 |
| Ohio | $33,493,235,000 | $2,851 |
| Kansas | $7,538,475,000 | $2,567 |
| Mississippi | $7,470,178,000 | $2,549 |
| Montana | $2,795,614,000 | $2,453 |
| Utah | $7,453,346,000 | $2,178 |
| Oklahoma | $8,457,322,000 | $2,089 |
| Iowa | $6,149,694,000 | $1,920 |
| Arizona | $14,291,349,000 | $1,917 |
| Alabama | $8,772,871,000 | $1,721 |
| Idaho | $3,369,178,000 | $1,707 |
| Texas | $50,963,262,000 | $1,671 |
| Arkansas | $4,801,939,000 | $1,568 |
| North Carolina | $16,310,177,000 | $1,506 |
| Wyoming | $769,721,000 | $1,320 |
| Florida | $28,823,847,000 | $1,272 |
| Georgia | $13,050,862,000 | $1,182 |
| Nebraska | $2,014,523,000 | $1,021 |
| Nevada | $3,248,814,000 | $1,012 |
| Tennessee | $6,127,422,000 | $859 |
To Sum It Up,
When it comes to debt by state, there are a lot of factors to look at. While some states have high populations and high taxes, these are also some of the states with the highest debt. Some states with lower populations are more tax-friendly and don’t have as much debt.
State debt can increase with a number of different things but one main thing that increases debt for a lot of states is pensions. For consumer debt, the top is mortgages. Other things that increase the debt for states include healthcare costs and other human services. State debt can be an indication of the economic health of the state so it’s important to consider the numbers.