Fiscal woes: Of major cities, Philadelphia fourth in largest burden on taxpayers

(The Center Square) – The tax burden on Philadelphia residents to cover municipal debt is one of the highest in the country when compared with other major cities, and puts the slow-growing metropolis at a disadvantage compared to the rising economies of the Sun Belt.

A report from Truth in Accounting found that, of the 10 largest cities in America, Philadelphia was the fourth-worst for residents from the financial burden of government entities such as schools, transit systems, and government bodies. Philadelphia had a per-taxpayer burden of $48,100 – only Los Angeles, New York City and Chicago were worse.

Cities in the Southwest such as Phoenix ($11,200), San Antonio ($19,400), and Dallas ($26,000) were in better fiscal shape.

Not all of the problem falls on local leaders, however. While local debt is higher than the total debt in the Southwest cities ($29,800), the burden of state debt alone is $18,300 per taxpayer.

The fiscal problems generated by spending approved by the General Assembly and governor have created a burden for cities, making Pennsylvania less competitive than other places. As The Center Square has previously reported, critics have noted Pennsylvania’s poor financial discipline and wealthier residents have been leaving the state for years, making its long-term financial situation worse.

Recognizing the problem can also be tricky, thanks to lackadaisical reporting standards.

“Taxpayers and voters do not have the information needed to be knowledgeable participants in their state government,” the report noted.

While New York City includes financial information including debt in its annual financial report for all government entities, many cities do not.

If voters don’t know the true tax burden their cities face, economic growth may be less of a priority for them.

“(Philadelphia) went into the COVID-19 pandemic in poor fiscal health, and it will probably come out of the crisis even worse,” pension expert Ed Bachrach wrote in Truth in Accounting’s report on the financial state of cities.

As more Americans and immigrants choose cities in the South and West, Pennsylvania’s cities have yet to figure out a plan to regain significant population growth.

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