Forget the National Debt - Most of America's Big Cities Are Broke

Red State ^ | 02/20/2024 | Ben Kew

[SeekAndFind]

A majority of America's largest cities are broke and unable to meet their liabilities, according to a new analysis. 

In its eighth annual Financial State of the Cities report, the right-leaning think tank Truth in Account determined that as of 2022, 53 of the country's 75 largest cities have fewer assets than liabilities. 

The report notes:

At the end of the fiscal year 2022, 53 cities did not have enough money to pay all of their bills. This means that to claim their budgets were balanced—as is required by law in the 75 cities—elected officials have not included the actual costs of the government in their budget calculations and have pushed costs onto future taxpayers.

Together, the 75 cities had $307.4 billion worth of assets available to pay bills; their debt, including unfunded retirement benefit promises, amounted to $595.3 billion. Pension debt totaled $175.9 billion, and other post employment benefits (OPEB), mainly retiree health care, totaled $135.2 billion.

According to the analysis, the biggest obligation faced by large cities is their pension liabilities, which become more affordable based on the market worth of investments: 

In 2022, the cities continued to receive and spend federal COVID-19 relief funds, and as the U.S. economy reopened, they took in additional tax revenue. Such economic gains were offset by increases in their pension liabilities, which were caused in large part due to decreases in the market value of pension investments.

Over the past few years, investment market value shave swung dramatically. In 2022, this volatility negatively impacted most cities’ pension investments and their financial condition, which demonstrates the risk to taxpayers when cities offer defined pension benefits to their employees.

Of the 75 cities the report examined, only one received an A grade for fiscal health. The most common grade was D, followed by C and B. 

Did you know that at the end of FY 2024 fifty-three cities did not have enough money to pay their bills.

Was your city one of them? Let us know 👇


https://t.co/OSkqPkK9q0 pic.twitter.com/XiSZhhc8Ra— Truth in Accounting (@truthinacct) February 20, 2024

The cities are also analyzed on their respective taxpayer burden, which means the amount of money every taxpayer would have to pay in order for the budget to be balanced. 

Unsurprisingly, nine out of the ten cities with the largest taxpayer burden are run by Democrats. Leading the pack is New York City( -$61,800), followed by Chicago (-$42,900), Honolulu (-$24,200), Philadelphia (-$20,400), Portland (-$20,100), New Orleans (-$18,200), Miami (-$15,500), Milwaukee (-$15,300), Baltimore (-$14,100), and Pittsburgh (-$13,000).

It was not all bad news, however. Some cities were in taxpayer surplus, meaning they could afford to give every taxpayer a certain sum of money and still have a balanced budget. The five cities with the greatest surpluses were Washington, D.C. ($10,700), Irvine, California ($6,100), Plano, Texas ($5,100), Lincoln, Nebraska ($4,100), and Oklahoma City ($2,900). 

NEW RELEASE ALERT 🚨🚨

We have officially released our Financial State of the Cities report❗

At the end of the fiscal year 2022, 53 cities did not have enough money to pay all of their bills...

How did your state do?


https://t.co/g9q672G90h pic.twitter.com/4QQGTQ0kfe— Truth in Accounting (@truthinacct) February 16, 2024

The report concedes its limitations, including the fact that 2022 was still at the peak of the COVID-19 recovery process. However, it also notes that all of these cities received billions in federal relief funds, which should have helped the process of balancing out their budgets. 

[Jonty30]

Democrat cities and they are hoping for a federal bailout after the next election.

[whitney69]

“Democrat cities and they are hoping for a federal bailout after the next election.”

Where do these cities think the funds to keep the feds from going under already came from? There are no money trees in the back yards in Washington either.

wy69

[Jonty30]

The money comes from the red states, who have been far more financially responsible.

[linMcHlp]

Billionaires

- - - - - - - - -

California		186		Maryland		11		Montana		4
New York		135		Michigan		11		Indiana		3
Florida		78		Tennessee		11		Nebraska		3
Texas		73		Oklahoma		8		Oregon		3
Illinois		23		Missouri		7		Hawaii		2
Massachusetts		22		Ohio		7		Kansas		2
Georgia		18		Virginia		7		Mississippi		2
Pennsylvania		18		Wisconsin		7		Idaho		1
Nevada		17		Arkansas		6		Iowa		1
Connecticut		13		North Carolina		6		Kentucky		1
Washington		13		Utah		6		Louisiana		1
Colorado		12		Wyoming		6		Maine		1
Arizona		11		New Jersey		5		Rhode Island		1
District of Columbia(DC)		11		Minnesota		4		South Carolina		1
								South Dakota		1

- - - - - - - - -

[irishjuggler]

I always tend to assume San Francisco is one of the worst-run cities in the country,... but then I see its per-capita budget shortfall ($8,800) utterly dwarfed by the likes of Chicago ($42,900) and NYC ($61,800)

[gundog]

Give the city employees maids, nannies, and butlers from south o’ the border in lieu of benefits.

[chopperk]

That would fall in line with Obozo/Biden plan for a Socialist
America. This is the reason for 20 million illegals.

[cymbeline]

“There are no money trees in the back yards in Washington either.”

The US Treasury can and do “loan” money that is not backed up by anything.

[T.B. Yoits]

There is a number, that economists know, of how many years a city can go without tipping so far as to become unrecoverable. These cities passed that number decades ago.

There is also a number, that economists know, of how many cities an economy can support. We also exceeded that number decades ago.

Cities ceased to offer the advantages they previously did and have no future.

[mewzilla]

Meanwhile...

BREAKING REPORT: ⚠️ CEO of Cardone Capitol orders underwriters to IMMEDIATELY DISCONTINUE ALL UNDERWRITING on New York City real estate following $355 MILLION Trump Judgement. 'The risk outweigh the opportunities at this time.'

[CodeToad]

Japan is at 253% debt to GDP ratio. They’re surviving.

[mewzilla]

Not just from so-called red states. On Ilinois, courtesy Second City Cop...

Force Lawful Contributions

Pension boards are saying that the state should divert money from East St. Louis to fund police, fire pensions,

[Jonty30]

That’s just a start. You can expect there to be a push for smaller, Republican states, be forced to send their wealth to richer and more powerful Democrat states. The Democrats and RINO’s intend to keep the system going for as long as they can.

A nationalization of the nation’s wealth.

[ChildOfThe60s]

Bttt

[whitney69]

“...who have been far more financially responsible.”

I think it’s more like they haven’t been hiding as well. The feds don’t see red or blue, they see green. So they are going to get it anywhere they can. The wrongs is in how they dish it out, not by how they take it. One compliments the other.

wy69

[Jonty30]

Here is the debt by each state as a share of their GDP

https://www.statista.com/statistics/246337/state-debt-in-the-us-as-a-percentage-of-gsp/

[whitney69]

“The US Treasury can and do “loan” money that is not backed up by anything.”

Or anybody. And loans are when the feds allow you to have money back they took from you and charge you interest to return it. So nothing plus nothing leaves something to lie about and use again.

wy69

[dforest]

How is the mayor of NYC affording to hand out 10 thousand dollar gift cards to illegal aliens if his city is broke?

Why wasn’t he handing out those cards to the poor people there before the illegals arrived?

[cymbeline]

“And loans are when the feds allow you to have money back they took from you”

I’m thinking of the case where the government gives (loans) money that they didn’t get from anywhere.