“Pennsylvania needed more than $51 billion to pay its outstanding bills, including unfunded retirement obligations,” a report by the organization Truth in Accounting said in its bevy of reported grading each states’ fiscal health.
The report — unsurprisingly, in our view, when you consider the above statement — gave Pennsylvania a D. Under the organization’s criteria, Pennsylvania, when compared to other states, ranks 36th.
The organization, in talking to news service The Center Square for a report which ran in Tuesday’s Sun-Gazette, also cautioned that in recent years states are at risk of being overly reliant on federal revenue streams.
Another factor was increased spending from pent-up demand during the pandemic driving the scope of tax revenues up.
But, as the leaders of Truth in Accounting caution, these revenue streams are exceedingly unlikely to be permanent.
When Pennsylvania uses fleeting revenue streams to cover spending on various pet projects and continues to delay addressing these looming obligations, how does that influence the decisions of investors and employers on whether they should bring jobs to our families and neighbors and friends or to states that are performing better, like Utah or Tennessee?
“States should not count on temporary federal funding and increased tax collections to fix their long-term problems,” Sheila Weinberg, CEO of Truth in Accounting said.
She’s right. Pennsylvania’s government spends too much money, and neglects its long-term commitments in the process."
Read the full article on: Williams Port Sun Gazette