Report: Utah gets strong financial grade despite 'repeated problems' handling federal funds

SALT LAKE CITY — Is Utah fiscally healthy?

A new state financial report from Truth in Accounting says so, ranking the Beehive State fourth among 50 states in terms of its statewide financial situation and giving it an "A" financial grade, while also pointing out "repeated problems" with the state's handling of federal money.

"Utah's financial condition continued to improve, with more than enough money available to pay bills and a solid buffer against economic uncertainty. Income and sales tax collections increased as Utah benefited from steady employment, consumer spending, and business activity," said the report.

More specifically, the ranking is based on Utah ending the 2025 fiscal year with $17.2 billion more than it needed to pay its bills, meaning the state had a taxpayer surplus (revenue generated versus debts owed) of $14,900. Truth in Accounting's grading scale gives any government with a surplus over $10,000 an "A."

Alaska, Wyoming, North Dakota, South Dakota, Nebraska, Iowa and Tennessee were the only other states that received an "A."

"The fact that Utah is one of those that ranks high is a good sign. There's actually quite a few states that are having deficits and actually debts exceed revenue generated," Jeff Moss, commissioner of the Governor's Office of Economic Opportunity, told KSL News.

Moss added that Utah is one of only eight states that have a AAA bond rating, but why does it matter?

"States that are fiscally healthy, especially if you think about going through challenging periods ... those states that have strong fiscal health are able to weather those downturns better," Moss said.

But even in good economic times, strong financial health allows Utah to invest in education, roads and "all of those things that are really important to the residents," Moss said.

Despite having a fiscally healthy state government, the report also noted that a Single Audit (an audit of entities receiving significant federal funds) of Utah found "repeated problems with financial reporting, documentation, and oversight across state agencies."

Utah received $11.6 billion in federal grants in 2025, good for 28% of its revenue, according to the report.

"Issues included unsupported financial records, late reimbursements, inaccurate federal reports, weak oversight of organizations receiving federal funds, staff shortages, contractor overcharges, and inconsistent reviews," the report said.

You can find the full report here.

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