The City of Detroit’s financial status isn’t completely failing, but it’s pretty close.
Detroit received a “D” for fiscal health, according to the 2020 Financial State of the Cities report.
The report is compiled by Truth in Accounting (TIA), a nonpartisan think tank.
TIA ranked the largest 75 cities in the nation; Detroit landed at 41 and was among 32 other cities that received a “D.” Grades are determined by taxpayer deficits or surpluses.
The report found that Detroit has $3.9 billion of bills and $2.7 billion available after counting restricted capital and assets, leaving a $1.1 billion debt burden.
Detroit taxpayers down the line will have to foot a $5,100 per person bill if changes aren't made, said Sheila Weinberg, founder and CEO of TIA.
A contributing factor to the city’s “D” grade is the 2014 bankruptcy that brought a 90-percent reduction to retired city workers’ healthcare benefits.
The city is $1.7 billion short of fulfilling its $6.7 billion owed in pension benefits, the report found.
Other cities are also struggling with benefits owed to retired workers.
“The bad news is for every $1 of promised retiree health care benefits, the 75 cities have only set aside 13 cents to fund these promises,” Weinberg said.
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