Anchorage's Financial Health Declines, Receiving a "C" Grade

Anchorage’s financial condition remains strained, earning a "C" grade from Truth in Accounting based on its latest available financial report.

Due to the unavailability of Anchorage’s 2023 financial data, this analysis relies on 2022 figures, which revealed a $115.4 million shortfall. This equates to a Taxpayer Burden™ of $1,000, placing Anchorage among the “Sinkhole Cities.” Despite revenues exceeding expenses, the city's financial position declined due to a 6% increase in its share of the Alaska Public Employees’ Retirement System net pension liability from unrealized losses.
Key findings from the report include:

• Anchorage had $1.1 billion available to pay $1.2 billion in bills.
• The city’s financial obligations continued to grow, leading to a $115.4 million deficit.
• With a Taxpayer Burden™ of $1,000, Anchorage ranks 27th out of 75 cities evaluated.

Without access to 2023 data, city officials and taxpayers were left without a clear financial picture when making budget decisions. However, Anchorage took a notable step toward financial transparency by consolidating figures for both the primary government and component units, enhancing accountability.
For those interested in a deeper dive into Anchorage’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.