Albuquerque's Financial Health Worsens, Earning a "C" Grade

Albuquerque's financial condition took a step backward in fiscal year 2023, according to a recent analysis by Truth in Accounting. The city now faces a $768.5 million shortfall, equating to a $4,000 burden for each taxpayer. These findings have earned Albuquerque a "C" grade and the unfortunate designation of a "Sinkhole City."

Despite signs of recovery from the COVID-19 pandemic—such as improved investment income and program revenues—the city's financial stability was undermined by a rising unfunded pension liability, which has now grown to $1 billion. Additionally, Albuquerque's governmental expenses increased by $143.4 million over the previous year, driven by higher grant spending and inflation-related costs.

Key findings from the report include:

• Albuquerque had $1.1 billion available to pay $1.9 billion worth of bills.
• The city’s unfunded pension and retiree health care benefits continue to put significant strain on its long-term financial health.
• With a Taxpayer Burden™ of $4,000, Albuquerque ranks 45th out of 75 cities evaluated.

For those interested in a deeper dive into Albuquerque'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.