Chicago?s Financial Crisis Deepens, Earning an ?F? Grade

Chicago?s financial condition worsened in fiscal year 2023, with the city facing a staggering $40.9 billion shortfall. This equates to a Taxpayer Burden? of $40,600, earning Chicago an ?F? grade and ranking it among the worst-performing cities in Truth in Accounting?s latest report.

Despite a $2.2 billion increase in revenues?driven primarily by a 55% rise in property tax collections?the city?s expenses still outpaced its income, leading to a reported $580 million shortfall. Unfunded pension liabilities continue to be a major concern, exacerbated by recent legislation that added $1.2 billion to the Policemen?s Annuity and Benefit Fund?s unfunded liability. These growing pension obligations further strain the city?s long-term fiscal health.
Key findings from the report include:

• Chicago had $13.1 billion available to pay $54.1 billion in bills.
• The city?s financial shortfall increased by $2.6 billion, resulting in a $40,600 burden per taxpayer.
• A newly passed state law added $1.2 billion to the city?s pension liabilities, worsening its financial outlook.

Chicago?s financial crisis underscores the urgent need for structural reforms, particularly in pension funding and long-term debt management. Without significant changes, the city?s financial burden on taxpayers will continue to grow.

For those interested in a deeper dive into Chicago?s finances?and how it compares to other major U.S. cities?you can read the full Financial State of the Cities 2025 report here.