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Outstanding debt and other post-employment benefit liabilities each contribute approximately $600 billion to total debt. Outstanding debt includes bonds, leases and other regularly assessed components of primary government debt. Post-employment benefits include health care and other non-pension benefit guarantees owed to public employees. The final two items included in the total state debt calculation are outstanding unemployment trust fund loans and fiscal year 2013 budget gaps. Unemployment trust fund loans represent payments due to the federal government, often to cover rising unemployment costs as a result of the recent economic downturn. The fiscal year 2013 budget gap is the gap between revenues and expenditures in each state's most recent budget year. Both of these figures declined from last year's report; the budget gap total decreased by more than half. “However, these totals failed to make a sizable impact on state debt; their totals are dramatically overshadowed by pension liabilities, OPEB liabilities and outstanding debt,” the report concluded. More information is here.
Outstanding debt and other post-employment benefit liabilities each contribute approximately $600 billion to total debt. Outstanding debt includes bonds, leases and other regularly assessed components of primary government debt. Post-employment benefits include health care and other non-pension benefit guarantees owed to public employees.
The final two items included in the total state debt calculation are outstanding unemployment trust fund loans and fiscal year 2013 budget gaps. Unemployment trust fund loans represent payments due to the federal government, often to cover rising unemployment costs as a result of the recent economic downturn. The fiscal year 2013 budget gap is the gap between revenues and expenditures in each state's most recent budget year. Both of these figures declined from last year's report; the budget gap total decreased by more than half.
“However, these totals failed to make a sizable impact on state debt; their totals are dramatically overshadowed by pension liabilities, OPEB liabilities and outstanding debt,” the report concluded.
Rebecca Mooreeditors@plansponsor.com