Portland needs $4.4 billion to get out of the red

A new report on the financial condition of the 75 most populous cities ranked Portland no. 70 in the nation for fiscal health. The report is based on the cities’ 2019 comprehensive annual financial reports, which are not analyzed on this scale by any other organization.

The analysis by Truth in Accounting (TIA), a nonprofit government finance watchdog group, found Portland needed $4.4 billion to get out of the red, or $20,400 from each of its taxpayers.

According to the watchdog's annual Financial State of the Cities report, Portland owed $5.8 billion and only had $1.4 billion to pay those bills after capital and restricted assets are excluded. This resulted in a $4.4 billion shortfall, or a $20,400 Taxpayer Burden™, which is each taxpayer's share of the municipal debt after the city's available assets have been tapped.

TIA's Taxpayer Burden indicator incorporates both assets and liabilities, including all retirement liabilities. COVID-19 has made it more important than ever that governments are transparent about their financial situation. A strong and healthy balance sheet would enable governments to have confidence in moving quickly and aggressively to address COVID-19.

The bottom line is that Portland did not have enough money to pay its bills, which is why it received an F grade for its fiscal health.

You can read the full report here and Portland’s individual report here.