The group estimated Maryland had slightly more than $35 billion available to pay about $61 billion in bills, leaving a gap of $25.7 billion. Founder Sheila Weinberg said the state would need that amount to meet the obligations included in the group’s analysis. The report also classified Maryland as one of four states whose expenses exceeded revenue.

Truth in Accounting said the shortfall works out to more than $11,000 per Maryland resident. Weinberg argued that the state faces difficult fiscal choices, saying they would be better made sooner rather than later. She described Maryland as “economically bankrupt,” a characterization that reflects the group’s interpretation of its accounting figures, not a formal legal bankruptcy filing.

The assessment arrives amid a dispute over the state’s finances. Gov. Wes Moore has said he balances Maryland’s budget each year. The watchdog’s balance-sheet approach examines obligations and available resources beyond the annual budget, so its findings present a different measure of fiscal health than the governor’s statement about balancing the budget.

A federal audit has separately raised concerns about Maryland’s financial recordkeeping and oversight, citing incomplete records, missing documentation and accounts that were not properly checked, along with potential risks of fraud and abuse.

The findings have direct significance for residents because state financial choices shape the resources available for public services and the obligations carried forward to future budgets. The figures also make clear why a high-profile grade should be read alongside its methodology: the report’s estimate is a broad accounting assessment, while the state’s annual budget balance is a distinct measure.