Chicago Receives Failing Grade for Fiscal Health

According to Truth in Accounting’s Financial State of the Cities 2026 report, Chicago did not have enough money at the end of fiscal year 2024 to pay all its bills. The report shows a shortfall that equals a Taxpayer Burden™ of about $42,600 per taxpayer.

The analysis notes that Chicago’s long-term obligations are driven by historically underfunded pension plans and significant unfunded retiree health benefits. These liabilities push total obligations above available assets. Chicago earned a grade of “F,” indicating the city is far from meeting its balanced budget requirements and is in serious financial trouble.

This report delivers a straightforward review of the five largest U.S. cities’ assets and debts, including often-overlooked retirement liabilities, to give taxpayers a clearer view of fiscal realities. To promote accountability, budgets must incorporate contributions to retirement systems, ensuring officials fully recognize and fund these commitments.