At the end of the fiscal year 2022, 53 cities did not have enough money to pay all of their bills.
"Sobering Statistics
The study, called Financial State of the Cities 2023, was done by Truth in Accounting. It has some difficult truths: 50 out of 75 cities could not pay their bills; the combined debt for all 75 cities is $267 billion. Moreover, elected officials didn’t include the cost of government in this figure, instead pushing it onto future taxpayers."
This year's report highlights the volatility and risk surrounding pension plan assets and corresponding pension liabilities.
Includes: "While these cities may appear to have balanced their books, the reality is very different, says TIA founder Sheila Weinberg. 'They have surpluses and seem to be in good shape. But it is misleading; they are ignoring their debts,' Weinberg told Delaware Valley Journal. 'It’s a little like saying, ‘well, you got plenty of cash in your pockets but just ignore those big credit card debts you have in your back pockets.’”
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.
Editorial, includes “The PSERS has been having quite a year. Executives with the $67 billion pension fund for Pennsylvania’s public school teachers were found to have stayed in lavish hotels on the agency’s dime."
Truth in Accounting has released a new analysis of the 10 most populous U.S. cities that includes their largest underlying government units.
Here’s a breakdown of the issues facing the $62 billion pension fund for teachers. They include a botched figure for financial performance and FBI questions and subpoenas.
By Yves Smith, includes “… returns allegedly falsified to avoid increased worker contributions … As the Philadelphia Inquirer, which broke this story, explains, even in the event that the PSERS’ investment performance meets or exceeds its investment target, only taxpayers will be on the hook to make up for a funding shortfall. If it falls below the target, both employees and taxpayers pony up. …”
By Christen Smith (The Center Square), includes “… Truth in Accounting likened city officials’ habit of underfunding pensions to ‘charging earned benefits to a credit card without having the money to pay off the debt.’ Instead, the funds are directed toward ‘politically popular programs,’ leaving future taxpayers to cover the losses. The tactic only makes budgets appear balanced, the report concludes.”
A new report finds that Philadelphia’s budget deficit would cost each of the city’s 1.5 million residents $27,500 to balance, representing the fourth highest tax burden in the country.
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.
Truth in Accounting has released a new report on the 10 largest U.S. cities. The City Combined Taxpayer Burden report analyzes the finances of each city, its county, state, and underlying government units.
Our fourth annual report on the financial condition of the nation's 75 largest cities.
The School District of Philadelphia is contributing historically high sums to the state-run pension system for its employees, and these hefty payments will affect budgets for the district and the city government for years to come.
Six months ago, in ‘When Paying Taxes in Cash is Prohibited,’ I described legislation pending in Philadelphia that would prohibit stores from refusing to accept payments in cash.
People thought Rebecca Rhynhart was crazy when she decided to run for Philadelphia controller. At the time, the city never had a woman in the position. Rhynhart also did not have a traditional political background.
Philadelphia has taken steps to put its underfunded public employee pension system on what will be a long road to recovery. Will those efforts work, and can the city stick to the plan?