Contributing to its potential bankruptcy are soaring pension liabilities (currently estimated at over $200 billion), costly healthcare obligations for public employees, and an expansive public sector workforce.
A study by the Bureau of Governmental Research highlighted that the city faced a budget deficit of $97 million in 2021.
Key factors contributing to its precarious financial situation include a shrinking population, high pension liabilities, and the need for infrastructure improvements.
A combination of factors contributes to its perilous fiscal state, including high pension liabilities, hefty healthcare costs for public employees, and a persistent budget deficit.
The police and fire pension alone face a billion-dollar shortfall. The city’s financial troubles are underscored by an eye-opening total debt of approximately $7.6 billion.
The city’s public pension program is significantly underfunded due to investment losses. This and scarce revenue growth have contributed to regular budget shortfalls.
Miami’s financial state is inextricably linked to climate change. Its total debt amounts to approximately $1.3 billion.
The Windy City is grappling with ballooning pension liabilities, exacerbated by years of fiscal mismanagement and economic policy shortfalls.