California's hidden debt -- California says it has an unfunded liability of $4,909 per person, but according to a report from State Budget Solutions, it is nearly $20,000. Much of the debt is due to mismanagement of pension funding.

◼ Report: State budgets fudge numbers to hide massive debt - FOX

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.

The book-cooking could mean bad news for public pensions and other programs that rely on these budgets. The report finds that, nationwide, states have unfunded liabilities of nearly $5 trillion, or $15,000 per American (even though the states allegedly low-ball that number at $2.7 trillion).

“They’re making promises that they can’t keep,” Joe Luppino-Esposito of State Budget Solutions told FoxNews.com.