Memphis and Nashville governments are operating at a deficit, but Nashville improved its finances in the past year, according to a report released Thursday by Truth in Accounting.
The Financial State of the Cities report found that 54 cities did not have enough money to pay their bills. Each city has some form of a balanced budget requirement, but this new report shows that cities have not met the intent of their requirement and have pushed costs onto future taxpayers.
At the end of the fiscal year 2022, 53 cities did not have enough money to pay all of their bills.
This year's report highlights the volatility and risk surrounding pension plan assets and corresponding pension liabilities.
Includes: "Nashville ranked 68th out of the 75 largest cities in the U.S. in total debt per taxpayer, according to Truth in Accounting’s new Financial State of the Cities report. ... Nashville taxpayers have a burden of $19,800 per taxpayer, and Memphis had a burden of $4,800 per taxpayer.
Includes: "Nashville has around $12.5 million left of its second round of federal COVID-19 relief money, which is known as American Relief funds or ARP. The city is expecting another $129.5 million this summer. ... The federal government emphasizes that this money is temporary and shouldn’t be used to create new programs or add-ons. "
Truth in Accounting has released its sixth annual Financial State of the Cities report.
Despite receiving federal assistance from the CARES Act and other COVID-19 related grants, the majority of cities’ finances worsened. Total debt among the 75 largest U.S. cities amounted to $357 billion at the end of the fiscal year 2020, which was $23.5 billion worse than the last fiscal year.
By Steven Malanga, includes “Nashville’s budget woes predate the pandemic: the city began borrowing money to cover deficits after the Great Recession of 2008–09."
By Charles Trost, includes “… In comparison with other cities Nashville residents pay relatively low property taxes. Those who have recently moved here from high tax states like California and Illinois know this. Indeed in many instances it may have been a principle factor in their decision to move here. ”
Op-ed by Steven Malanga, includes “… City leaders have used deficit financing to balance Nashville’s books and spent much of the city’s reserve funds. The Tennessee comptroller has threatened a state takeover, and even the Biden administration’s lavish stimulus isn’t enough to plug Nashville’s budget hole. Amid all this, angry local groups are trying to spur a special election to roll back a gigantic property tax increase.”
Includes “Nashville recently was named a ‘Bottom 5 Sinkhole City’ by the nonpartisan think tank Truth in Accounting (TIA) in its fifth annual Financial State of the Cities report. … Nashville was among the bottom five of those 62 cities, earning it the ‘sinkhole’ distinction. The city ranked 71st out of the 75 cities examined and earned an F grade.”
By Mike Reicher and Joey Garrison, includes “… a recent report showed the city spent one out of every $10 of government funds to pay off debt last fiscal year. And this year’s budget may exceed that figure for the first time since at least 1993. … Moody’s gives Nashville the third highest credit rating available, something Briley likes to cite whenever the subject of Metro’s financial challenges arise.”
The 2021 Financial State of the Cities (FSOC) surveys the fiscal health of the 75 largest municipalities in the United States. This data is released today by Truth in Accounting (TIA), a think tank that analyzes government financial reporting.
Our fifth annual Financial State of the Cities report. This analysis surveys the fiscal health of the 75 most populated US cities prior to the coronavirus pandemic.
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