Report: State budgets fudge numbers to hide massive debt

America's red ink runs much deeper than you think.

Aside from the nearly $18 trillion national debt, many state governments are looking at future budgets that are trillions of dollars in the red. And they've hidden the numbers by dramatically under-reporting that debt, according to a new report by the think tank State Budget Solutions.

The group looked at what are known as "unfunded liabilities" -- or debt states will owe down the road. It found a number of states are fudging their numbers -- big-time -- using tricks like assuming their stock investments will soar.

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