(The Center Square) – Pension liabilities contributed to poor ratings for Missouri’s largest cities in a report by Truth in Accounting, a nonprofit organization devoted to examining the fiscal health of governments.
Both cities received “D” grades. Kansas City was rated 62nd out of 75 cities and St. Louis 64th. The report gave 22 cities (29%) “D” grades as the taxpayer burden was between $5,000 and $20,000.
The methodology is to examine the cities’ bills, their respective number of taxpayers and determine if there is burden or surplus for each. Grades of “A” or “B” are given to governments making their balanced budget requirements; “C” for passing if it comes close; and “D” and “F” when it is not balanced and there are significant taxpayer burdens.
The organization recommends pension plans be overfunded during market upturns so the plans can weather downturns in the market.
“Unfortunately, elected officials may see temporary, unrealized,
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