New York City Receives Failing Grade for Fiscal Health

According to Truth in Accounting’s Financial State of the Cities 2026 report, New York City 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 $61,700 per taxpayer.

The analysis notes that while the city pays actuarially determined pension contributions, it has accumulated extensive unfunded retiree health benefit obligations, which contribute heavily to total long-term liabilities exceeding available assets. New York City earned a grade of “F,” indicating the city is far from meeting its balanced budget requirements and remains 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.