Jacksonville Faces $3.6 Billion Shortfall, Earning a “D” Grade

Jacksonville’s financial condition worsened in fiscal year 2023, with the city facing a $3.6 billion shortfall. This equates to a Taxpayer Burden™ of $9,800, earning Jacksonville a “D” grade and classifying it as a “Sinkhole City” in Truth in Accounting’s latest report.

The city’s financial performance declined slightly, with governmental activity expenses increasing by $433.7 million—outpacing a $304.5 million rise in revenues. Public safety costs, which make up 53% of total government expenses, rose by $418.1 million, adding strain to Jacksonville’s financial stability. Property taxes remain the city’s largest revenue source, making effective management of rising costs crucial for long-term fiscal health.
Key findings from the report include:

• Jacksonville had $4.6 billion available to pay $8.2 billion in bills.
• The city’s financial shortfall amounted to $3.6 billion, leaving each taxpayer with a $9,800 burden.
• Public safety expenses rose sharply, contributing to growing financial strain.

With expenses growing faster than revenue, Jacksonville must prioritize strategic budgeting and long-term financial planning to maintain stability and continue supporting essential public services.

For those interested in a deeper dive into Jacksonville’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.