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City Debt Bubble?

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Greg P
Greg P
Posted underBankruptcyBondsChicagoDallasHoustonMiamiMilwaukeeNew York CityPension DebtPhilidelphia
53 of the largest cities in the USA have not generated enough revenue to cover their bills. New York City has an estimated $177 billion of debt, and some experts believe that cities and state governments are overselling bonds to fund spending, resulting in underfunded pensions and retiree health benefits. Cities like New York, Portland, Oregon, Washington D.C., and Los Angeles are implementing spending cuts due to revenue shortfalls, affecting public education, library hours, and alternative-to-incarceration programs. Debt issuance is crucial for financing capital plans, but there is a risk associated with an inability to issue debt, leading to unsafe conditions and overcrowding. The speaker criticizes state and local government balanced budget requirements, arguing that they give a false sense of security and encourage budgeting and accounting gimmicks to hide unsustainable debt. The demand for resources continues to exceed availability, and cities are relying on federal bailouts during crises. 

https://www.truthinaccounting.org/news/detail/financial-state-of-the-cities-2024

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