from States needing billions in subsidies to others that are struggling immensely in post-pandemic economic recovery today on a cross the globe we'll be looking at 10 US states going broke in 2025 number 10 Vermont nestled in the Lush Embrace of the Green Mountains Vermont has long been a postcard perfect vision of pastoral charm think Rolling Hills maple syrup and vibrant Fall Foliage however beneath its idealic exterior realiz some Financial inks that would make even the most industrious Beaver feel a bit overwhelmed historically known for its independent spirit and pinion for artisanal cheese Vermont finds itself grappling with budget deficits and skyrocketing healthcare costs that could rival the height of Mount Mansfield in May 2024 former Vermont Governor Howard Dean sparked concerns when he pinned a letter to the media outlining his concerns for the state's fiscal and political situation stating how he was de deeply alarmed in September 2024 Vermont Public stated that Vermont hospitals are heading for bankruptcy and a plan to keep them afloat calls for dramatic changes they noted that a 2024 analysis found that the state's hospitals would need as much as 3 billion in subsidies from Commercial Insurance increases or taxpayers to remain solvent over the next 5 years if immediate steps aren't taken in November 2024 CNBC listed 10 of the highest debt States ver Vermont came in 10th place they reported that Vermont has a $10,900 taxpayer burden meeting each Vermont taxpayer would need to pay $10,900 to get the state out of debt number nine Kentucky cushioned in the heart of the Bluegrass region Kentucky has a rich history steeped in Bourbon horse racing and the Charming twang of bluegrass music known as the Bluegrass State Kentucky proudly hosts the Kentucky Derby or the only thing faster than the thoroughbreds maybe the state's mounting Financial woes unfortunately as the state indulges in its equin festivities and famed Fried Chicken it's facing a significant fiscal hangover according to CNBC Kentucky is Galloping towards trouble with a taxpayer burden of $13,200 according to data Z Kentucky is a sinkhole State without enough assets to cover its debt only having $23 billion of assets available to pay bills totaling 42 half half billion meaning the state has a $19. 5 billion Financial hole this alarming Financial hole not only reflects ongoing budget shortfalls but also presents long-term challenges in funding essential services like Education Health Care and Public Safety without a robust strategy for addressing these systemic issues kuy's Financial struggles may continue to deepen leaving its citizens to Grapple with the impacts of this economic sinkhole number Number Eight Louisiana Louisiana the land of jazz gumbo and vibrant Marty gross celebrations has a history as colorful as its culture however despite its festive facade the Bayou state has seen its fair share of financial woses much like a Gumbo Pot that's been left on the stove too long things just keep bubbling over from the aftermath of Hurricane Katrina to struggling oil prices impacting its energy sector Louisiana has faced a series of economic hurricanes that have left its budget soaking wet as of 2024 CNBC tells us that the state is waiting through some serious financial trouble with a taxpayer burden of $13,400 however it's clear that most residents cannot live up to this in October 2024 axio stated that Louisiana is part of the country's struggling belt they noted how many residents are struggling with everyday expenses this is rather perplexing seeing as the cost of living in Louisiana is 9% lower than the national average housing is 18% lower than the national average and utilities are 16% lower however according to fcnl Louisiana is in the top 10 hungriest States and the top 10 poorest states this highlights a disconnect between affordability and quality of life for many residents while the prices for Necessities might be more palatable access to sufficient resources and opportunities is starkly limited this ju position indicates how living costs do not Translate to prosperity for all instead they often reflect systemic issues such as underemployment food insecurity and inadequate Social Services number seven Delaware Delaware often dubbed as the first state for being the first to ratify the Constitution has a rich history that stretches back to the times of the line LPE Native Americans and the fondly remembered colonial days of the swedes and Dutch it's a Charming Place known for its vast marshlands beautiful beaches and a certain corporate friendliness after all many companies have made Delaware their home for its business-friendly laws however despite this sunny corporate facade Whispers of financial trouble are creeping in the little state has found itself in a bit of a pickle according to CNBC Delaware carries a taxpayer burden of $15,400 per resident in June 2024 a better Delaware stated that Delaware is no longer the first state noted how it's been on a spending spree that's not supported by the state's Revenue they added that over the past 3 years Delaware has spent nearly 4 billion dollars in Surplus money received because of the federal government's excessive granting of funds during the pandemic however they added that some of the funds for the expanded budget the governor recommended comes from residual federal funds yet the problem lies with the fact that much of the federal money went to New programs or the expansion of others these will remain in effect fact but the federal money is now gone and the state revenue will be required to support those programs according to data Z Delaware only has $7. 8 billion of assets available to pay bills totaling 14 billion because Delaware doesn't have enough money to pay its bills it has a negative $6.
2 billion Financial hole number six Hawaii ah Hawaii a paradise on Earth with its stunning beaches Lush landscapes and a cultural history as rich as its famous Poke Balls once a sovereign Kingdom before the US overthrew Queen Lily ulani in 1893 this tropical Jewel has captivated countless hearts and travelers for decades but behind the postcard perfect palm trees and hoola dancers lies a more sobering reality Hawaii is struggling financially in fact according to CNBC the state has a taxpayer burden of $16,500 so while the surf might be up it seems Hawaii isn't always the financially sound Haven that movies would have us believe according to data Z Hawaii is a sinkhole State with a financial hole of negative 8. 9 billion this means that Hawaii's debt is much greater than its assets so why exactly is the state suffering so much financially well Hawaii's Financial struggles stem from a combination of factors that create a challenging economic environment firstly Hawaii consistently ranks as one of the most expensive ensive states to live in primarily due to its geographical isolation the cost of importing Goods everything from food to Consumer products drives up prices for residents in August 2024 USA Today reported that Hawaii is the most expensive State based on monthly household bills Hawaii residents spend an average of $3,991 each month on utilities rent and mortgage and other common household costs residents spend 45% above the national average Additionally the state's economy heavily relies on tourism which can be volatile events like natural disasters pandemics and geopolitical issues can dramatically affect visitor numbers resulting in significant Revenue fluctuations number five California California the land of sunshine surfboards and seemingly endless dreams where Hollywood Glitz collides with reality checks remember the gold rush it seems California is embarking on different kind of treasure hunt these days but instead of gold nuggets it's unearthing Financial woes with soaring costs of living a homelessness crisis and a tech economy that sometimes feels like a roller coaster ride the Golden State's glitter is starting to lose its luster to top it off the folks at CNBC have thrown down a stunning statistic California is facing a taxpayer burden of $177,400 according to data Z Cal California only has $ 275. 000 of assets available to pay the bills totaling $535.
50 billion Financial hole so what's going wrong the first thing to note is that California has one of the highest costs of living in the nation which strains the finances of many residents this includes cludes steep housing prices expensive health care and Rising Transportation costs High living costs make it difficult for many Californians to contribute taxes that could help alleviate State debts additionally California has made significant commitments to Public Employee pensions that are underfunded these pension liabilities have grown over the years and require large allocations of the state budget diverting funds from other crucial areas in May 2024 the San Francisco Chronicle stated that California's underfunded pension liabilities are ballooning out of control they noted that California's total underfunded pension liabilities are an eyew watering $250 billion at the heart of California's pinching crisis are defined benefit retirement programs lastly it goes without saying that California has long battled with illegal immigration and this has placed great financial strain on the state according to world population review the cost of illegal immigration in California totals 2. 76 billion this adds up to approximately 8% of the estimated 250 billion United States illegal immigrant cost reported Circa 2018 number four Massachusetts Massachusetts home of the Boston Tea Party and a rich tapestry of history that includes everything from the pilgrims to the fascinating world of clam chowder known for its prestigious universities and spirited Sports culture this New England has a reputation that shines brighter than a sunny day in October however even the Bay State isn't immune to financial wos with Rising expenses and some budgetary hiccups Massachusetts finds itself facing serious fiscal challenges according to CNBC the state now grapples with a taxpayer burden of $225,400 leaving many residents hoping for a financial Miracle akin to a last minute touchdown in the Super Bowl according to data Z Massachusetts only has 48 . 4 billion of assets available to pay bills totaling $22.
4 billion and because the state doesn't have enough money to pay its bills it has a negative $74 billion Financial hole one key factor is the rising costs of public services including Education Health Care and pension obligations which have steadily ballooned over the years the state also grapples with an aging infrastructure that requires urgent attention and let's not forget the finan ccial strains exacerbated by economic downturns and the impacts of the pandemic additionally Massachusetts strong commitment to social programs and a progressive tax structure can lead to budgetary strains when revenues don't keep Pace with those commitments number three Illinois Illinois the Land of Lincoln where the windy city of Chicago offers Big Drams And even bigger debts once considered a booming Hub of industry and agriculture this great lake state has had quite the roller coaster ride through its history complete with a cast of characters from renowned presidents to Mobsters however behind the iconic Skyline in the irresistible deep dish pizza lies a tale of fiscal woe yes my friends Illinois seems to be facing some serious Financial turbulence CNBC reports that the state has a staggering taxpayer burden of $37,000 per person in October 2024 News Gazette stated that unhealthy financial status put Illinois on the critical list they noted that in its latest report on the financial health of the 50 states truth in accounting the chicago-based financial Watchdog group ranks Illinois near the very bottom at number 48 according to data Z Illinois only has $ 58. 1 billion of assets available to pay bills totaling $27. 2 billion and the state's reported net position is understated by $9.
4 billion largely because the state delays recognizing gains resulting from decreases in retirement liabilities in July 2023 Illinois policy reported that Illinois state and local pension debt tallied to $218 billion with both debt to GDP and funding ratios the worst in the nation then in December 2023 they reported that unfunded liabilities for Illinois five Statewide pension systems grew by $2. 5 billion within the space of a year number two New Jersey New Jersey a state famous for its boardwalks diners and an uncanny ability to keep you stuck in traffic with the history that includes being the sight of one of George Washington's pivotal Revolutionary War battles and a Melting Pot of cultures the Garden State has plenty of character however behind the scenes things don't seem so peachy budget deficits Rising pension obligations and a pension for Innovative taxation have New Jersey teetering on the edge of financial chaos according to CNBC the state's taxpayer burden is a staggering $42,500 leaving many to wonder if the state's motto should change from liberty and prosperity to Liberty with the sight of debt according to data Z New Jersey is a sinkhole State without enough assets to cover its debt and the state only has 57. 2 billion vets available to pay the bills totaling $214 billion they also also noted that New Jersey's reported net position is understated by $ 35.
7 billion largely because the state delays recognizing gains resulting from decreases in retirement liabilities in February 2024 the New Jersey monitor stated that multi-year forast show that New Jersey is facing multi-billion dollar deficits even under optimistic conditions the projections drafted by a budget group at the Sweeney Center found that forecasts were made using a budget that assumes the state will fully fund state school aid continue making full pension payments fund the state NJ property tax relief program and annually invest $500 million into NJ Transit it also assumes most costs will increase by 3% annually or 5. 1% for certain medical expenses so it's safe to say that things aren't looking good for 2025 number one Connecticut Connecticut the Charming Constitution State where picture esque landscapes in quite small towns hide a prickly Financial Secret once a thriving Hub during the Industrial Revolution with factories humming and insurance companies sprouting Connecticut has turned into a cautionary tale for fiscal mismanagement like a classic New England ghost story but instead of A Haunted House it features hollowed out bank accounts various missteps over the years like overs spending and economic downturns have left the state floundering and CNBC reports that it now has a staggering taxpayer burden of $44,500 in February 2024 CT examiner reported that the US as a whole and the state of Connecticut are sinking deeper into debt while skyrocketing national debt receives widespread media attention Connecticut receives almost none they noted that the United States growing debt is highlighted and explained by huge budget deficits while Connecticut's increasing liabilities are hidden behind budget surpluses according to data Z Connecticut only has $21 billion of assets available to pay bills totaling $859 billion because Connecticut doesn't have enough money to pay its bills it has a negative 64.
