By Jack Bernard, contributing columnist
PEACHTREE CITY, Ga. | As a fiscal conservative, I have criticized both political parties for their mutual failure to balance the budget and reduce the national debt. The GOP has been disingenuous on this issue, lowering taxes on the wealthy while not cutting expenses. Under President Trump, our deficit reached new higher levels.
But a recently issued report on fiscal affairs, 2017-2021, and the 75 largest U.S. cities stunned me. The site, Truth in Accounting, said that the fiscal situation is getting more severe in several key cities which have Democrats as mayors, something played up by the Republicans. This is not surprising in that of the 100 largest U.S. cities, two-thirds are led by Democrats.
The city of Atlanta is ranked 25th regarding financial issues. On the positive side, it is improving, rated as a “B” because it “comes close to meeting its balanced budget requirement.” But barely. Atlanta has less than a million dollars in reserves. On the negative side, because the stock market went down in 2022 and pension funds are invested in it, expectations are that Atlanta’s rating will go down when the next report comes out.
The relatively good news is that debt per taxpayer decreased in New York City, Philadelphia, Dallas, Pittsburgh and Miami. But it was already outrageously high in these entities. The average New Yorker would owe $56,900 if the city were to pay off its debts. For the other cities, this is the cost per taxpayer to pay off their city’s debt: Philadelphia, $21,800; Dallas, $14,700; Pittsburgh, $14,600; and Miami, $14,000.
The even worse news: debt per resident is high and still increasing in these cities: Chicago, $41,900 (up 16%); Honolulu, $26,100 (up 14%); Portland, $23,400 (up 15%); New Orleans, $22,700 (up 33%);and St. Louis, $18,000 (up 8%). When will the officials running these cities wake up and address their looming disaster?
The fiscal deterioration of our major cities should not be ignored by the Democrats. On almost every domestic issue, Democrats lead the GOP in national polling, showing the Republicans are out of step with the average American. The one exception is prosperity, including fiscal integrity.
Gallup recently polled Americans, asking: “Looking ahead for the next few years, which political party do you think will do a better job of keeping the country prosperous?” The GOP came out ahead, 51% versus only 41% for the Democrats. Prior to 2010, the Democrats had been winning on this issue since World War II.
Falling confidence in the ability of the Democrats to keep our nation doing well (including fiscal integrity) is bound to hurt them long term at the ballot box in both state and national elections. People, at least the more responsible ones in both parties, want a balanced budget on every level of government.
It makes no sense for our largest municipalities to keep running deficits. They cannot go on adding debt forever. Will these cities eventually declare bankruptcy, stiffing those Americans holding their bonds? Many cities already have, including Detroit ($18 billion in debt), Stockton, and San Bernardino in California, Moffett, Okla. and Washington Park, IIll., which filed twice.
Unfortunately, we will just have to wait and see.
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