Miami Faces $2.3 Billion Shortfall, Earning a “D” Grade

Miami’s financial condition showed some improvement in fiscal year 2023, but the city still faced a $2.3 billion shortfall. This equates to a Taxpayer Burden™ of $13,400, earning Miami a “D” grade and classifying it as a “Sinkhole City” in Truth in Accounting’s latest report.

The city's financial shortfall decreased slightly, but significant challenges remain. Miami International Airport played a vital role in the region’s economy, serving 52.3 million passengers and contributing an estimated $32 billion annually. This growth has supported tourism, infrastructure development, and local businesses.
Miami also led all metro areas in job gains across key industries, with 12,200 new jobs added in leisure and hospitality. Growth in construction, professional services, financial activities, and manufacturing further reinforced the city’s strong economic base. However, this economic strength will be essential in addressing the city’s $2.3 billion in unfunded bills from prior years.
Key findings from the report include:

• Miami had $962.5 million available to pay $3.2 billion in bills.
• The city’s financial shortfall amounted to $2.3 billion, leaving each taxpayer with a $13,400 burden.
• A growing economy and job market will be critical in addressing long-term financial challenges.

Despite strong economic growth, Miami must take strategic steps to manage its unfunded liabilities and ensure long-term fiscal stability.

For those interested in a deeper dive into Miami’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.