Arizona only has $9.8 billion of assets available to pay bills totaling $18.6 billion.
Because Arizona doesn't have enough money to pay its bills, it has a $8.8 billion financial hole. To fill it, each Arizona taxpayer would have to send $4,500 to the state.
Arizona's reported net position is inflated by $906.4 million, largely because the state defers recognizing losses incurred when the net pension liability increases.
Despite a recently implemented accounting standard meant to increase transparency, Arizona still excludes $2.1 billion of pension debt from its balance sheet. In addition, the state is still hiding $896.5 million of its retiree health care debt. A new accounting standard will be implemented in the 2018 fiscal year which will require states to report this debt on the balance sheet.
The state's financial report was released 258 days after its fiscal year end, which is considered untimely according to the 180 day standard.