Charleston, S.C. and Pomona, California (home of disgraced baseball slugger Mark McGwire) rank atop of a list of “Ten U.S. Cities With Less Than Ten Days Cash On Hand.”
According to The Wall Street Journal, the Holy City has zero days cash on hand. According to the Holy City, the paper is full of it.
Specifically, the city says the WSJ report neglected to take into account that the city’s fiscal year matches the calendar year – and as a result its analysis “does not reflect the $43.5 million of consolidated cash on hand on December 31, 2012 that was available to pay operating expenses.”
That may be true, but The Wall Street Journal report – prepared in the aftermath of Detroit’s bankruptcy – provides a frightening look at the piss poor state of municipal finances in America.
The biggest problem? Exorbitant pension benefits … and the massive unfunded liabilities they impose on local governments. According to a 2010 study, the total unfunded liability of city and county pension funds in America was $574 billion.