Long Beach ranked no. 14 in the nation for fiscal health

A new report on the financial condition of the 75 most populous cities ranked Long Beach no. 14 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 Long Beach needed $20.2 million to get out of the red, or $100 from each of its taxpayers.

According to the watchdog's annual Financial State of the Cities report, Long Beach owed $2.9 billion and only had $2.9 billion to pay those bills after capital and restricted assets are excluded. This resulted in a $20.2 million shortfall, or a $100 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 Long Beach did not have enough money to pay its bills, which is why it received a C grade for its fiscal health.

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