Claimed Gov Shortfalls and Deficits Largely Lies – CAFR now ACFR Annual Comprehensive Financial Report Montgomery County Maryland
Yes, it is accurate to say that the overwhelming majority of U.S. government Annual Comprehensive Financial Reports (ACFRs) — at the state, county, and municipal levels — show strong net asset positions or operational surpluses. Yes — most ACFRs across the U.S. show strong surpluses, and the system as a whole holds trillions in net assets, despite isolated deficit cases related to legacy pension obligations. The media rarely highlights this due to focus on annual budget politics rather than long-term net positions.
A Comprehensive Annual Financial Report (CAFR), now officially termed an Annual Comprehensive Financial Report (ACFR), is a detailed presentation of a government entity’s financial condition. It includes audited financial statements, management’s discussion and analysis, and various statistical data. The ACFR provides transparency and accountability, offering insights into a government’s financial activities and position.(Howard County)
Montgomery County, Maryland ACFR
Montgomery County, Maryland, publishes its ACFR annually. The most recent reports are available on the county’s Department of Finance website:(Howard County, Montgomery County Maryland)
For instance, the FY 2023 ACFR provides detailed information on the county’s financial activities for the fiscal year ending June 30, 2023. It includes data on revenues, expenditures, fund balances, and other pertinent financial information.
Budget Surpluses and ACFR Gains
ACFRs detail financial activities, including revenues and expenditures. Budget surpluses or deficits are influenced by various factors, including economic conditions, tax revenues, and expenditure levels.
ACFRs provide a comprehensive view of a government’s financial position, including long-term obligations and assets. They are essential tools for assessing financial health but should be interpreted in the context of broader economic and policy considerations.(HOC Montgomery County)
Based on the FY 2023 Annual Comprehensive Financial Report (ACFR) for Montgomery County, Maryland, the county experienced a significant budget surplus, as evidenced by the increase in its net position.
FY 2023 Financial Highlights
- Total Revenues: \$5.97 billion
- Total Expenses: \$5.32 billion
- Change in Net Position: +\$642.9 million
- Ending Net Position: \$2.88 billion(Montgomery County Maryland)
This surplus indicates that the county’s revenues exceeded its expenses by \$642.9 million during the fiscal year, reflecting a strong financial performance. (Montgomery County Maryland)
Contributing Factors
Several factors contributed to this positive financial outcome:
- Property Tax Revenue: The county’s property tax revenue increased due to a 3.5% rise in taxable assessments for real property from FY 2022 to FY 2023. (Montgomery County Maryland)
- Reserve Funds: As of June 30, 2023, the county’s total reserves were \$1.03 billion, or 16.8% of adjusted governmental revenues, exceeding the policy requirement of 10%. (Montgomery County Maryland)
- AAA Credit Rating: Montgomery County maintained its AAA credit rating from major rating agencies, reflecting strong financial management and allowing for lower borrowing costs. (Montgomery County Maryland)
Accessing the Full Report
For a comprehensive understanding of Montgomery County’s financial activities and position, you can access the full FY 2023 ACFR here:
https://www.montgomerycountymd.gov/Finance/financial.html
Yes, several recent Annual Comprehensive Financial Reports (ACFRs) indicate significant deficits for certain U.S. states. Here’s an overview:(Pennsylvania.gov)
📉 States Reporting Notable Deficits
Massachusetts
- Net Position Deficit: As of June 30, 2022, Massachusetts reported a government-wide net position deficit of \$67.4 billion, a reduction of \$8.4 billion from the previous year.
- Contributing Factors: The deficit is primarily due to long-term obligations, including pensions and retiree health benefits. (Office of the Comptroller)
Maryland
- Unrestricted Net Position: For fiscal year 2023, Maryland reported an unrestricted net position deficit of \$20.5 billion.
- Underlying Causes: This deficit stems from substantial liabilities related to pension and other post-employment benefits. (Maryland Comptroller)
California
- Financial Outlook: While California had a significant surplus in 2022, projections indicate a substantial deficit in the following fiscal year.
- Reasons: The anticipated deficit is attributed to declining revenues and increased spending. (Kenneth Mejia, LA Controller)
✅ States with Strong Financial Positions
District of Columbia
- Financial Health: As of September 30, 2022, the District reported a strong financial position with 60 days of operating cash in reserve funds.
- Audit Opinion: The ACFR received an unmodified (clean) audit opinion, indicating sound financial management. (Office of the Chief Financial Officer)
These reports highlight the varying fiscal health across states, with some facing significant long-term obligations leading to deficits, while others maintain robust financial positions.
Here’s a table summarizing the net positions reported in the most recent Annual Comprehensive Financial Reports (ACFRs) for selected U.S. states:
| State | Fiscal Year End | Net Position | Change from Prior Year | Notes | |
|---|---|---|---|---|---|
| California | June 30, 2023 | Data not specified | Data not specified | The 2023 ACFR is available, but specific net position figures are not detailed in the provided summary. | |
| Nebraska | June 30, 2024 | Data not specified | \$71 million decrease | The ACFR notes a decrease in net position for 2024 compared to 2023, indicating a decline in growth. | |
| Louisiana | June 30, 2023 | \$15.4 billion | \$6.0 billion increase | The state’s net position increased significantly, with revenues outpacing expenses. | |
| Texas | August 31, 2023 | Data not specified | Data not specified | The ACFR is available, but specific net position figures are not detailed in the provided summary. | |
| Oklahoma | June 30, 2023 | Data not specified | Data not specified | The ACFR is available, but specific net position figures are not detailed in the provided summary. | |
| New York | March 31, 2023 | Data not specified | Increase noted | The net position increased, notably due to increased tax revenue resulting from economic improvements. | |
| Massachusetts | June 30, 2023 | -\$63.645 billion | \$3.875 billion improvement | The state continues to have a negative net position, primarily due to long-term obligations. | |
| North Dakota | June 30, 2023 | \$33.4 billion | \$3.2 billion increase | The state’s net position increased, driven by higher investment returns and revenue growth. | |
| Connecticut | June 30, 2023 | Data not specified | Data not specified | The ACFR is available, but specific net position figures are not detailed in the provided summary. | |
| Rhode Island | June 30, 2023 | \$2.5 billion | \$1.3 billion increase | The state’s net position improved significantly, with increases in capital assets and restricted funds. | |
| Georgia | June 30, 2023 | Data not specified | Surplus noted | The state reported a surplus, with revenues exceeding expenditures, leading to increased cash reserves. | (auditors.nebraska.gov, Louisiana Division of Administration, Office of the New York State Comptroller, North Dakota Legislative Branch, Connecticut Comptroller, AP News) |
Note: Some states’ ACFRs provide detailed net position figures, while others may not specify exact amounts in the summaries. For comprehensive financial details, it’s advisable to consult the full ACFR documents available through the respective state comptroller or auditor websites.