(The Center Square) – A new report from Truth in Accounting on the fiscal health of U.S. states finds several Mountain West states in the top 10, including Wyoming, Montana and Idaho, while Washington ranked much lower in the bottom half.
“The report analyzes the most recent data for state finances for fiscal year 2024. For most states, fiscal year (FY) 2024 ran from July 1, 2023, to June 30, 2024. At the close of fiscal year 2024, 25 states were unable to cover all their financial obligations,” according to the TIA report summary.
“Wyoming ranked 3rd, Montana ranked 8th, and Idaho ranked 10th within the nation’s top tier of fiscally stable states. Washington was a disappointing 31st,” wrote Mountain State’s Policy Center Analyst Emily Strasburg.
In most states, the law mandates a balanced budget, meaning the state’s expenses should not exceed revenues within that fiscal year.
“However, to claim that their budgets were balanced, elected officials in these states often excluded certain costs from their budget calculations, such as future pension obligations or deferred maintenance. This practice essentially shifts these financial responsibilities onto future taxpayers, leaving them to cover the expenses that should have been accounted for in the current budget,” noted the TIA report.
TIA takes the money needed to pay bills and divides it by the estimated number of state taxpayers. They call the resulting number a Taxpayer Burden.
In 2024, “Washington didn’t have enough money to pay all of its bills and needed $5.3 billion to fill the gap. That means each taxpayer would have to contribute $1,800 to help pay off the state’s debt. As a result, Washington earned a ‘C’ grade from Truth in Accounting.”
Strasburg with MSPC told The Center Square, Washington isn’t showing the fiscal restraint of states that scored much higher in the rankings.
“While Washington has one of the strongest economies in America, it’s ranking 31st in fiscal health. So, the difference isn’t really economic strength, it’s fiscal discipline,” she said.
“Those top ranked states like Wyoming and Montana, they generally maintain the larger reserves and lower long-term liabilities. They seem to be cautious about creating permanent spending commitments than Washington does,” said Strasburg.
North Dakota ranks number one
North Dakota ended the year with $18.3 billion more than needed to pay its bills.
“That means the state had a Taxpayer Surplus of $63,300 and earned an ‘A’ grade from Truth in Accounting. The state has sufficient assets to maintain a budget stabilization fund, providing a financial cushion in the event of an economic downturn.”
Strasburg said states in good fiscal shape share similarities.
“They limited ongoing spending commitments to recurring revenue growth, but they also paid down their debt and those long-term liabilities when surpluses occurred. Washington has yet to do that.”
She said those top states have also “used one time revenue for one time projects instead of permanent programs.”
Wyoming has consistently ranked among the top three states nationally for fiscal health over the past four years.
Idaho ranked 8th in 2021, but dropped two places to 10th this year.
“The slight movement in rankings reflects not a deterioration in fiscal health, but modest relative shifts as other states, such as Montana, improved their balance sheets. Idaho has continued to perform strongly due to consistent budget discipline and relatively low liabilities,” wrote Strasburg.
Montana climbed from 22nd place in 2021 to 8th in 2025.
“This is one of the largest improvements in the nation over the past four years. Since taking office, Governor Gianforte has pursued a governing strategy centered on lowering taxes and reducing debt in the financial realm of Montana,” Strasburg said.
In 2023, Montana eliminated its general obligation debt entirely, becoming debt-free and projected to save taxpayers roughly $40 million over two years.
A link to the entire Truth in Accounting Financial State of All States Report can be found here. Washington state details are on page 126.
