Watchdog Report Finds $240 Billion Gap at Largest U.S. Cities in Fiscal 2024

Overview

• The five cities reported $144 billion in assets against $384 billion in obligations, including $92 billion in pension debt and $112 billion in retiree health care liabilities.
• Fiscal grades assigned were F for New York City and Chicago, D for Philadelphia, and C for Houston and Los Angeles.
• Estimated taxpayer burdens were New York City $61,700, Chicago $42,600, Philadelphia $17,000, Houston $4,800, and Los Angeles $1,300.
• Chicago’s gap totaled $41.1 billion, and its major pension funds have roughly 25 cents set aside for each dollar promised despite officials’ assertions of a legally balanced budget.
• Truth in Accounting criticizes practices such as excluding incurred costs, treating borrowing as revenue, and inconsistent reporting of entities like school systems, and says it is working with Sen. Jim Banks on federal legislation.