Are city fiscal woes widespread? Are pensions the cause?

Abstract

The brief's key findings are: (1) Detroit's bankruptcy and Chicago's fiscal problems have led some to question whether cities nationwide are in trouble and if pensions are the reason. (2) But a search for cities identified by the media as financially troubled found only a small number overall, with about one-third located in California. (3) And, among the financially troubled cities, pensions are only a minor factor; the main drivers are poor financial management and weak economies. (4) Thus, the answer to both questions appears to be “no.”