Honolulu receives 'F' grade for fiscal health

A new report on the financial condition of the 75 most populous cities ranks Honolulu no. 73 in the nation for fiscal health. The report is based on the cities’ 2018 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 Honolulu needs $3.3 billion to get out of the red, or $26,400.00 from each of its taxpayers.

According to the watchdog's annual Financial State of the Cities report, Honolulu has $6 billion in bills and only $2.7 billion in available assets to pay those bills after capital and restricted assets are excluded. This results in a $3.3 billion shortfall, or a $26,400.00 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. Fiscal year 2018 was the first year city governments reported all retirement liabilities, but TIA has been including this information in their analysis for the last several years.

The bottom line is that Honolulu does not have enough money to pay its bills, which is why it received a "F" grade for its fiscal health.

You can read the full report here and Honolulu's individual report here.