COVID-19 and the resulting economic downturn made a considerable impact in many areas of the U.S. economy during 2020, but most certainly in municipal budgets. Taking a look at the nation’s 75 largest municipalities, Truth in Accounting found that most could ill afford a large-scale health crisis.
The organization’s just-released 2021 Financial State of the Cities found that in fiscal 2019, just 13 of the largest cities had more assets than obligations, a key indicator of long-term financial health. The remaining 62 cities carried varying levels of debt, with many cities already billions of dollars in hock prior to the onset of the pandemic.