ST. LOUIS – A new report analyzing the financial state of many large US cities ranked St. Louis among the worst in fiscal health and gave it a “D” financial grade.
Truth in Accounting, a nonprofit that analyzes national trends in financial data, released its “2024 Financial State of the Cities” report on Thursday. The report offered insights into 75 of the largest U.S. cities and their finances.
St. Louis was ranked 64th among 75 U.S. cities measured in terms of fiscal health. Truth in Accounting determined that St. Louis needs nearly $1 billion to erase its debts, which would mean an average taxpayer burden of more than $11,000.
For what it’s worth, only 22 of 75 cities analyzed reported a taxpayer surplus.
Truth in Accounting determined that dozens of major US cities did not have enough money to pay their debts, despite increased tax revenues and COVID-19 relief funds.
The report mentions that St. Louis slightly improved its financial state with help from tax revenues and relief funds, though the gains are a bit deceiving due to outdated pension data.
“If the city’s pension investments experienced the same major decrease that most other cities experienced in 2022, St. Louis’ pension debt would be higher,” the report reads. “Over the past few years investment market values have swung dramatically. This volatility demonstrates the risk to taxpayers when their city offers defined pension benefits to its employees.”
The report notes that St. Louis had set aside only 87 cents for every dollar of promised pension benefits and no money set aside for promised retiree health care benefits.
Truth in Accounting also noted that continued market fluctuations, changing investment values, decreased COVID relief funds, and a stabilizing economy could slow tax collections, which could create more risk for the city’s fiscal health.
The report ranked Washington D.C. for having the best fiscal health with an average taxpayer surplus of $10,700 and New York City for having the worst fiscal health with an average taxpayer burden of $61,800.