National Organization Gives Memphis and Nashville Low Grades on Fiscal Health

 

A Chicago-based nonprofit gives Memphis a C grade for its fiscal health.

This same nonprofit, Truth in Accounting, gave Nashville something even worse — a grade of D.

This, according to a report members of the organization recently released assessing the financial health of several major cities throughout the United States.

According to the report, Memphis is one of 27 cities to receive a C grade for its financial condition.

“Memphis’ elected officials have made repeated financial decisions that have left the city with a debt burden of $743.9 million,” according to the report.

“That burden equates to $3,700 for every city taxpayer. Memphis’ financial problems stem mostly from unfunded retirement obligations that have accumulated over the years. Of the $5.4 billion in retirement benefits promised, the city has not funded $236.1 million in pension and $678 million in retiree health care benefits.”

Yes, Every Kid

Data came from the city of Memphis’ 2018 audited Comprehensive Annual Financial Report and retirement plans’ reports.

Truth in Accounting went on to say Memphis has $1.7 billion available to pay $2.5 billion worth of bills.

Meanwhile, Nashville has a taxpayer burden of $18,400 and is one of 32 cities to receive a D grade for its financial condition, the report went on to say.

“Nashville’s elected officials have made repeated financial decisions that have left the city with a debt burden of $3.8 billion,” according to the Truth in Accounting report.

“That burden equates to $18,400 for every city taxpayer. Nashville’s financial problems stem mostly from unfunded retirement obligations that have accumulated over the years. Of the $10.4 billion in retirement benefits promised, the city has not funded $378.3 million in pension and $4.2 billion in retiree health care benefits.”

The report also said Nashville has $3.3 billion available to pay $7.1 billion worth of bills. Nashville’s reported net position is also inflated by $152.1 million, largely because the city defers recognizing losses incurred when retirement liabilities increase.

According to a Truth in Accounting press release, the organization’s 2020 Financial State of the Cities report surveyed the fiscal health of the 75 largest municipalities in the United States.

The 2020 FSOC report found that 12 of the largest cities have more assets than obligations, a key indicator of long-term financial health. The remaining 63 cities carried varying levels of debt, many of them in the billions of dollars range.

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Chris Butler is an investigative journalist at The Tennessee Star. Follow Chris on Facebook. Email tips to [email protected].
Photo “Memphis Skyline” by Trevorbirchett. CC BY-SA 3.0.

 

 

 

 

 

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2 Thoughts to “National Organization Gives Memphis and Nashville Low Grades on Fiscal Health”

  1. Steve Allen

    That’s because they’re controlled by the Leftists.Same as LA, San Fran, Chicago, Detroit, Baltimore, etc.A shining example of their failed social policies.

    1. 83ragtop50

      And it is only going to get worst if the mayor caves on the wasteful soccer stadium.

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