Fifty of the country’s 75 largest cities are in a substantial deficit, according to Truth in Accounting’s recent Financial State of the Cities report. Carrying high debt can be fiscally risky, putting city employees’ pensions and health care benefits at risk.
Is your hometown on the list? Read on to find out.
New York City
Unsurprisingly, the largest city in the United States also has the most significant debt. In 2021, the city had $171.5 billion in debt. However, when comparing data from 2017, the city’s debt has shrunk by 11%. Yet, if the debt were to be spread out among New York taxpayers, $56,900 would be added to each New Yorker’s financial load.
Chicago
The Windy City did the opposite of NYC, and instead of decreasing its debt in the past few years, it increased it by 16.4%. Chicago’s elected officials have repeatedly made financial decisions that left the city with a debt burden of $38.2 billion.
Honolulu
The taxpayers in the Hawaiian city would have an added burden of $26,100 if the $3.3 billion of debt were to be paid off by its residents. With Honolulu being ranked third in debt-ridden cities, Honolulu’s financial problems stem primarily from unfunded retirement obligations that have accumulated over the years.
Portland
Portland has not been in solid fiscal shape for many years. It needs more money set aside to pay its bills. Despite receiving federal stimulus money and record gains in the investment markets, Portland still needed $5.2 billion to pay its bills, primarily to retirement funds.
New Orleans
The Big Easy rounds out the list of the top five worst debt-ridden cities. The city is not going easy on its finances. Municipal debt per taxpayer has increased by almost a third since 2017 and now stands at $22,700. The city rose from being the 10th most in debt to the 5th most in debt during this time.
Philadelphia
The city of Brotherly Love needs more than just love to fix their debts. Philly’s financial woes are due largely to unfunded retirement obligations to its city employees and the ending of federal Covid monies. The city needs $11.9 billion to pay its debts, requiring each taxpayer to add $21,800 to the city coffers.
St. Louis
Even with its iconic arch as a “Gateway to the West,” the city of St. Louis deepened their financial debts by 7.8%, growing the funds needed by the city to 1.6 billion dollars. St. Louis is seventh in debt-ridden U.S. cities and would need taxpayers to contribute $18,000 to balance budgets.
Dallas
Ranked as the eighth worst city for its debts, the Big D needs $5.6 billion to pay off its debts with a taxpayer burden of $14,700. Dallas’ debt did shrink by 31.9% since 2017; even though everything is bigger in Texas, large debt should not be a boasting point for one of its major cities.
Pittsburgh
The Western Pennsylvania city has made improvements in its debts, but it still has a large sum to help the city balance its budget. If each taxpayer paid $14,600, the city could pay off its $1.5 billion in debts.
Miami
The warm, sun-filled city has the lowest debt out of the top ten populated cities. The city needs $2 billion to balance budget spreadsheets, and it has shrunk its debts by just about one percent in the last few years.
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Source: Truth in Accounting
