Baltimore’s Financial Woes Deepen, Earning a “D” Grade

Baltimore’s financial condition worsened in fiscal year 2023, with the city facing a $3.2 billion shortfall. This equates to a Taxpayer Burden™ of $14,400, earning Baltimore a “D” grade and reinforcing its classification as a “Sinkhole City,” according to Truth in Accounting’s latest report.

The city's financial strain was driven by expenses exceeding revenues by nearly $179 million, while pension debt continued to rise due to accruing benefits and interest outpacing investment income and contributions. On a positive note, Baltimore stands out for using up-to-date pension data for its city plans—an uncommon practice that improves financial transparency.
Key findings from the report include:

• Baltimore had $4.1 billion available to pay $7.3 billion in bills.
• The city’s financial shortfall amounted to $3.2 billion, leaving each taxpayer with a $14,400 burden.
• Governmental expenses increased by $1 billion, with the largest cost rises in public safety, education, and infrastructure.

Baltimore’s spending grew significantly in key areas, including a $400.2 million increase in public safety costs and a $248.2 million rise in education expenses. While these investments address critical services, they also highlight the financial challenges of balancing the budget.
For those interested in a deeper dive into Baltimore’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.