A new report by the think tank Truth in Accounting (TIA) finds Florida top four major cities need to do a better job when it comes to their financial debt.
While cities are required by law to balance their books, TIA says local lawmakers are understating the city’s debt by not including future costs like employee pensions and healthcare costs. The report lays out the “Taxpayer Burden” the amount each taxpayer would need to spend for the government to pay off all its debt tomorrow.
Tampa was ranked number 12, Orlando was ranked number 29, Jacksonville was ranked number 65, and Miami was ranked number 69.
TAMPA
Although the city’s financial condition deteriorated, it retained a Taxpayer Surplus™ of $1,500, earning it a “B” grade.
According to Tampa’s 2022 financial report, it continued to spend federal COVID-19 relief funds and as the U.S. economy reopened, the city took in additional tax revenue. Such economic gains were offset by decreases in the value of the city’s pension investments.
In 2022, the city’s pension investments and financial condition demonstrated the risk to taxpayers when their city offers defined pension benefits to its employees. Tampa had set aside only 82 cents for every dollar of promised pension benefits and no money for promised retiree health care benefits.
The report shows Tampa had more than enough money to pay its outstanding bills, but due to lower valuations on pension investments, its unfunded pension promises increased significantly.
ORLANDO
TIA gave Orlando a “C” grade. Despite increased tax collections and federal COVID relief funds, Orlando’s pension investment values decreased. This created a per Taxpayer Burden of $800. The city’s 2022 financial report showed Orlando had set aside only 74 cents for every dollar of promised pension benefits and 42 cents for every dollar of promised retiree health care benefits.
JACKSONVILLE
The “River City” received a “D” GRADE. Jacksonville’s financial condition worsened by $984.6 million, resulting in a Taxpayer Burden™ of $11,200. This comes after the city accepted over $500 million in COVID funds and extra tax revenue. Like the other cities, Jacksonville lost money due to the increases in its pension liability.
Jacksonville set aside only 47 cents for every dollar of promised pension benefits and only 11 cents for every dollar of promised retiree health care benefits.
The bottom line, Jacksonville would need $11,200 from each of its taxpayers to pay all of its outstanding bills.
MIAMI
This was ranked as the worst ‘big city” in the state.
Like the other cities, increases from COVID relief funds and additional tax revenue were offset by increases in the city’s pension liability. Miami had set aside only 61 cents for every dollar of promised pension benefits and no money set aside for promised retiree health care benefits.
Miami’s financial woes show a $2.3 billion shortfall, an increase of $304 million from the prior year, and a burden of $15,500 per taxpayer.
