Medical debt has ballooned to $10.4 billion and state officials say they are unable to pay it off.
It’s a problem the state faces as it seeks to balance the budget and provide more jobs to struggling communities.
But a new report by the state’s Department of Economic Development and Economic Growth says the state has more than $10 billion in uncollected debt.
The debt, which includes uncollections from state agencies such as the parks department and state hospitals, was reported as a $1.2 billion backlog last year.
It is also growing because of the impact of the Great Recession.
The $1 billion backlog includes debt from the previous fiscal year, which began June 1.
The department is looking at how to increase its revenue to pay off the debt, according to a release.
State officials say the backlog is primarily related to unpaid taxes, fees and other costs incurred during the Great Depression, which led to the state becoming a public company in 1921.
The recession hurt state revenue because of its inability to provide services to the people who depend on them.
State workers were able to collect more than 60% of their wages from the federal government through a payroll tax and unemployment insurance, according a recent state report.
In addition, many workers have earned unemployment insurance benefits because of other work.
In the last two years, the state received more than half a billion dollars in payments from the U.S. Department of Labor.
Officials say they plan to take action to eliminate the backlog and begin paying off the state debt in the coming years.
The state has not taken any actions to correct the debt and there are other issues that need to be addressed, the release said.