Tavares, FL May 16, 2017
This page shows a two page report from Truth in Accounting that shows their view of Florida's financial condition and a grade of "C". http://www.statedatalab.org/state_data_and_comparisons/detail/florida
Scroll down below the graphic to read their comments, including:
This one is what makes me angry about Florida fiscal mis-management:
"Despite reporting most of its pension debt, the state is still hiding retiree health care debt. Florida's total hidden debt amounts to $9.1 billion. A new accounting standard will be implemented in two years, and will require states to report this debt on the balance sheet."
This means state and local government leaders and employee unions have been promising employees fat retiree health insurance benefits but NOT setting aside any funds to pay for it. Now the liability is $8-billion for Florida government employees.
Note: Not all government employees are in the Florida retirement program, but Lake County employees, Lake County School District employees and some city employees are in it. The state sets the contribution rate, but the local employer can require the employee to contribute a share, and that varies by employer, but it is not very much compared to private employers.
Recommendation:
This is nothing but fraud, resulting in future taxpayers inheriting HUGE tax bills to pay for these unfunded health insurance liabilities for employees.
My belief is that employees be made to contribute half the deficit starting NOW and also pay any full growth in liabilities for the health insurance "promises" OR reduce the promised retiree benefits. If the employee groups and government managers made promises without any funding of them, I believe the benefits should be terminated. Hardly any private company employees obtained such unfunded benefits because rules existed for years that employers must fund them.
| Florida owes more than it owns |
| Florida's Taxpayer Burden™ is -$1,600, and received a "C" from TIA |
| Florida is a Sinkhole State without enough assets to cover its debt |
| Elected officials have created a Taxpayer Burden™, which is each taxpayer's share of state bills after its available assets have been tapped |
| TIA's Taxpayer Burden™ measurement incorporates both assets and liabilities, not just pension debt |
| Florida only has $61.4 billion of assets available to pay bills totaling $71.3 billion |
| Because Florida doesn't have enough money to pay its bills, it has a $9.9 billion financial hole. To fill it, each Florida taxpayer would have to send $1,600 to the state |
| Because of an accounting rule implemented last year, Florida has to report its pension debt on its balance sheet. This year, the state's reported pension debt grew from $4.2 billion in 2015 to $6.6 billion in 2016. |
| Despite reporting most of its pension debt, the state is still hiding retiree health care debt. Florida's total hidden debt amounts to $9.1 billion. A new accounting standard will be implemented in two years, and will require states to report this debt on the balance sheet. |
| The state's financial report was released 225 days after its fiscal year end, which is considered untimely according to the 180 day standard |
