Michigan

Michigan

Truth in Accounting has released an analysis of cities in the state of Michigan, including Detroit. Two page summaries for each of the 10 local governments can be found here

Michigan owes more than it owns.  Truth in Accounting’s (TIA) thorough analysis of state finances (below) shows Michigan does not have enough available assets to cover its debt.   

  • Taxpayer Burden  is each Michigan taxpayer’s share of state debt, after available assets are tapped 
  • TIA analyzes both state assets and liabilities, not merely pension debt
  • Most state debt in the “Taxpayer Burden” is unpaid retirement promises
  • Michigan has the 9th worst “Taxpayer Burden” of all 50 states           
  •  Retirement debt is essentially a state’s ‘credit card balance,’ showing unpaid retirement contributions from prior years
  •  Unfunded pensions leave future taxpayers with the bill for services they did not receive
  •  States hide retirement debt from public view.  See Hidden Retirement Debt: MI vs US average 2009-2013
See more about Michigan finances at the  Michigan Financial State of the State
Other Resources

Link to MI CAFR:   Michigan Comprehensive Annual Financial Report

Publishing Entity:  Michigan State Budget Office

  • Michigan has only $23 billion assets available to pay the state's bills totaling $81 billion
  • To fill its $58 billion financial hole, each Michigan taxpayer would have to send $19,300 to the state
  • This $19,300 Taxpayer Burden is 49% of an average citizen's personal income of $39,215
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