Link: https://manhattan.institute/article/big-city-pensions-and-the-urban-doom-loop#new_tab
Graphic:
Key Findings:
- Pension spending increased in all of the 10 largest American cities over the last decade, with a few cities experiencing a doubling or even tripling of their expenditures in 2021 dollars.
- Almost all cities saw an increase in pension spending per employee.
- There is large variation in the amount per employee that American cities are spending on pensions.
- To respond to rising pension demands, some cities have reduced employment, often in the area of public safety.
- A worsening market environment for pension funds will necessitate increased pension expenditures by cities in 2023 and beyond, exacerbating pressures to limit or reduce employment and, thus, city services.
Author(s): Daniel DiSalvo, Jordan McGillis
Publication Date: 6 April 2023
Publication Site: Manhattan Institute