Philadelphia Receives 'D' Grade for Fiscal Health

According to Truth in Accounting’s Financial State of the Cities 2026 report, Philadelphia 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 $17,000 per taxpayer.

The analysis notes that Philadelphia consistently funds its pension obligations at or above actuarially determined contributions, which helps manage long-term pension costs, but retiree health benefits remain minimally prefunded and contribute to total liabilities. Philadelphia earned a grade of “D,” indicating the city is in major debt.

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.