A new report from Truth in Accounting reveals that many of the 75 largest cities in the U. S. are experiencing serious financial issues, burdening taxpayers with significant debt.
• Most of the evaluated cities claim to have balanced budgets but disregard all government costs, shifting burdens to future taxpayers.
• Truth in Accounting advocates for full accrual accounting to improve transparency regarding financial obligations.
• The report suggests current debt figures are misleading, estimating that the actual U. S. national debt is about 4. 5 times the reported $36 trillion.
• Major liabilities include retiree health benefits and pensions, contributing to significant city debts$621. 7 billion in total against only $321 billion in assets.
• New York City ranks as the worst fiscally, while Washington, D. C. is the best.
• Although many cities reported greater revenues than expenses, unfunded pension and retiree healthcare liabilities overshadow these gains, accounting for over half of non-capital debt.
• Future liabilities are influenced by unpredictable factors like lifespan and economic conditions, complicating accurate financial planning.
• Cities without reserved funds may need to borrow for these future costs, affected by changing interest rates which alter required discounts for future benefits.
The report emphasizes that most cities are not only in debt but also carry a heavy burden for taxpayers, leading to potential disputes among local officials regarding financial health.
https://www.thecentersquare.com/national/article_39b1bb9e-f60f-11ef-b1c2-cf45c94bdceb.html
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