Bottom 5 "Sinkhole" Cities: New York, Chicago Lead the Way

-edited

63 out of America’s largest 75 cities can’t pay their bills, acquired $330 billion in unfunded debt.

Via a report on Watchdog, analysis of the 75 most populous cities in the U.S., shows that 63 of them can’t pay their bills. The total amount of unfunded debt among them is nearly $330 billion. Most of the debt is due to unfunded retiree benefits such as pension and health care costs.

Financial State of Cities

“This year, pension debt accounts for $189.1 billion, and other post-employment benefits (OPEB) – mainly retiree health care liabilities – totaled $139.2 billion,” the third annual "Financial State of the Cities" report produced by the Chicago-based research organization, Truth in Accounting (TIA), states.

Bottom 35

Top 5 Cities

Grading the Cities

  • A grade: Taxpayer Surplus greater than $10,000 (0 cities)
  • B grade: Taxpayer Surplus between $100 and $10,000 (12 cities)
  • C grade: Taxpayer Burden between $0 and $4,900 (24 cities)
  • D grade: Taxpayer Burden between $5,000 and $20,000 (31 cities)
  • F grade: Taxpayer Burden greater than $20,000 (8 cities)
    Truth in Accounting’s grading system for the 75 cities gives greater meaning to each city’s Taxpayer Burden or Taxpayer Surplus. A municipal government receives a “C,” or passing grade, if it comes close to meeting its balanced budget requirement, which is reflected by a small Taxpayer Burden. An “A” or “B” grade is given to governments that have met their balanced budget requirements and have a Taxpayer Surplus. “D” and “F” grades apply to governments that have not balanced their budgets and have significant Taxpayer Burdens.

What a miserable report.

The most shocking thing is not how bad the worst cities are, but rather some cities in California actually appear to be solvent.

By State

The above analysis is by city. Also consider State Level Liabilities.

Bottom Five

  1. New Jersey: -64,000
  2. Connecticut: -53,400
  3. Illinois: -50,800
  4. Kentucky -39,200
  5. Massachusetts: -33,500

Congratulations Chicago!

On a combined liability basis, Chicago is the winner. Each Chicagoan owes the state $50,800 and the city an additional $36,000 for a total of $86,800 per capita.

New York City residents "only" owe $21,500 to the state plus $64,100 to the city for a grand total $85,600 per capita.

Second City No More!

Mike "Mish" Shedlock

Comments (39)
No. 1-12
abend237-04
abend237-04

Mish, I'd point out that the two California cities, Irvine and Fresno, are both in Republican counties and have been managed responsibly. Our new governor is moving early to change that. He filed suit against Huntington Beach, also in Orange county with Irvine, last week for not building enough low income housing. Gotta get at those responsible outliers before they become a trend...

Sechel
Sechel

D'Blasio thinks he' lives in the great society . He keeps taking on new liabilities without being aware of who foots the bill. New Yorkers can only watch their real estate bills go up so much before rebelling.

Mish
Mish

Editor

Thanks for that factoid Abend

Mish
Mish

Editor

Abend were you an IBM mainframer programmer? I recalled that number but I had to look it up

https://www.mail-archive.com/ibm-main@bama.ua.edu/msg35292.html

ksdude
ksdude

And Chicago hasn't even built Obamaland yet.

2banana
2banana

2banana's Rule:

Democrat rule + public unions + free sh*t army = misery, ruin and bankruptcy

baldski
baldski

Abend, how is IBM's pension plan doing?

ML1
ML1

New York, Chicago, Philadelphia and San Francisco all welcome illegal immigration.

So them having their finances a complete mess is likely not a coincidence.

WildBull
WildBull

Add in the national -$65000 per head. Don't forget the feds. Much worse if you count the unfunded liability.

WildBull
WildBull

Short history of Socialism: famine, economic collapse, mass murder.

Blacklisted
Blacklisted

Okay, we understand the trend of govt's promising what can't be paid for (including unsustainable pensions), and extracting unsustainable taxes to keep the Ponzi scheme alive. We also know the govt will NEVER look in the mirror and admit their mistakes. Since the average Joe does not hold govt accountable until it's too late, one should also understand where this road ends.

The sign posts are well marked all over the world, and history is very clear that we are headed toward revolution and the likely succession of many states, unless direct taxation is ended.

As the hunt for money and direct taxation increases, capital will flee, leaving the masses that can't move fighting for the scaps. Cycle analysis says the financial capital of the world will move to China after 2032. If anyone doubts this forecast, please explain who in their right mind would even run for office after witnessing the hatred and personal attacks on Trump? There is absolutely NO way anyone will ever come to power who would actually try to help the situation. Trump is a dead cat bounce. Only career politicians and other establishment hacks will run, and these people NEVER look at the cycles. Instead, they look to line their pockets.

The other trend that will aggravate the economic and societal reset is the cooling cycle, caused by the reduced energy output of the sun, which is also cyclical. The resulting crop failures and rising commodity prices after 2020 will once again produce famines and plagues. Instead of preparing for nature's cycles that CANNOT be changed, too many are doing the exact opposite of what's needed. If people do not realize what is happening, our own complacency will be our doom.

The Yellow Vest protestors have been at it for three straight months. As our economy deteriorates, I hope Americans will get off the couch and focus their protests on the root of the problem - career politicians, big govt and direct taxation.

Casual_Observer
Casual_Observer

This is part of the Great Reset coming in the 2020s.