Earlier this year, I wrote about the annual rating by Truth in Accounting (TIA), which found that Missouri earned a “B” grade after reporting a small taxpayer surplus under full‑accrual accounting. Now a new study by the Reason Foundation—its “State and Local Government Finance Report” (October 2025)—offers a different methodology and a somewhat different perspective on Missouri’s fiscal health and national peers.
The Reason study finds that U.S. state and local governments held approximately $6.1 trillion in debt at the end of FY 2023. That figure breaks down roughly as $2.66 trillion at the state level, $1.4 trillion among municipalities, $1.27 trillion in school districts, and $757 billion in counties.
For state governments alone, Reason reports $2.7 trillion in debt as of end of 2023, which is about $8,000 per person nationally. The methodology includes near‑term liabilities (like unpaid bills and payroll) plus long‑term obligations (bonds, pensions, and retiree health).
Missouri ranked 25th in combined state and local debt at $53.34 billion. Broken down per capita, Missouri ranked 43rd at $8,829.
Truth in Accounting’s evaluation looked only at the state budget and divided the amount by taxpayer—while Reason considered state and local debts and divided by population. TIA concluded Missouri had a Taxpayer Surplus™ of approximately $200 per taxpayer. Lastly, Reason relied on 2023 data while TIA used 2024 numbers.
The TIA result is reassuring at first glance—but that’s because it looks only at the state obligations. Reason’s analysis reminds us that local governments carry significant obligations beyond what the state government balance sheet shows.
Missouri’s fiscal position is better than many states—but neither the TIA nor Reason analyses justify complacency. Policymakers at every level of government in Missouri should focus on liabilities, funding discipline, and structural reform. This includes being mindful of the long-term commitments we have made to fund government employee pensions and healthcare plans.
A lot of attention is focused on cutting taxes, and that is worthwhile. But fiscal restraint is not merely about cutting taxes—we must rein in our spending too, and that includes long-term commitments.
