City debt could crush credit ratings

Stacks of cash

The state comptroller’s office is warning that the size of debt that big cities have in their employee retirement and health care plans could start harming city and state finances. Truth in Accounting’s Sheila Weinberg says either retirees will have to take less or taxpayers will have to pay more.

Comptroller Glen Hegar says the debt is reaching the point where it could cut into municipal debt ratings, that would mean higher costs for everyone. 

(Photo: Shutterstock by Rrraum)

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