Which city has the most hidden debt?

State and local governments used to hide their large unfunded retirement benefits off their balance sheets. Thanks to new accounting standards, hidden debt is largely a thing of the past but some governments still hide retirement benefits that they are responsible for. Thankfully, Truth in Accounting is here to dig up that hidden debt and find the truth in the annual Financial State of the Cities report.

Which city is the worst when it comes to still hiding their debt? Is it New York City, Detroit, Los Angeles, San Jose, or Jacksonville?

On average the 75 largest cities in the U.S. have a $59.73 million discrepancy between their reported and actual unfunded retirement benefits.

San Jose has the fifth-largest hidden debt related to retirement benefits coming in at $309 million. In the 2020 report San Jose, CA ranked 56 out of 75 with a Taxpayer Burden of $10,300.

Jacksonville has the fourth-largest hidden debt at $357 million. Jacksonville, FL ranked 55 out of 75 with a Taxpayer Burden of $10,100.

With the third-largest hidden debt is Detroit at $363 million. Detroit, MI ranked 46 out of 75 with a Taxpayer Burden of $6,100.

New York City has the second-largest hidden debt at $635 million. New York, NY ranked last in the 2020 FSOS report with a Taxpayer Burden of $68,200.

Finally, Los Angeles has the largest hidden debt at $666.5 million. Los Angeles, CA ranked 38 out of 75 with a Taxpayer Burden of $4,000.

You can see how much hidden debt your city has here, and check out the financial report for your state and city at Data-Z.

Madison Randolph is a development intern at Truth in Accounting.