Are City Fiscal Woes Widespread? Are Pensions the Cause? Detroit’s bankruptcy and Chicago’s pension problems have prompted a wave of speculation about city finances. What are the facts? The underlying problems in financially troubled cities have been decades in the making: population loss, declining tax bases, and other patterns of fiscal mismanagement. This brief explores the extent to which economic factors, poor fiscal management, and/or high pension costs contribute to the challenges cities with financial problems face. (12/13) Key Findings include: •Only a small number of cities overall face serious financial troubles and one-third of them are in California. •Pensions are a minor factor in financially troubled cities; fiscal mismanagement tops the list, followed by economic problems.