New York City’s Financial Crisis Worsens, Earning an “F” Grade

New York City’s financial condition worsened in fiscal year 2023, with the city facing a staggering $184.2 billion shortfall. This equates to a Taxpayer Burden™ of $56,800, earning New York City an “F” grade and ranking it as the worst-performing city in Truth in Accounting’s latest report.

The city’s financial decline was driven by a $5.1 billion increase in liabilities from its retiree health care plan, which operates on a pay-as-you-go basis. This growing obligation further strains the city’s ability to fund essential services and programs.
At the same time, New York City has been experiencing a significant population decline. The U.S. Census Bureau estimates that the city’s population fell to 8.3 million in 2023, a 5.3% drop since April 2020. Contributing factors include more people leaving the city, fewer new residents moving in, declining birth rates, and lingering effects of the COVID-19 pandemic.
Key findings from the report include:

• New York City had $92.4 billion available to pay $276.6 billion in bills.
• The city’s financial shortfall amounted to $184.2 billion, leaving each taxpayer with a $56,800 burden.
• Rising retiree healthcare liabilities and a shrinking population further complicate the city’s financial future.

With mounting debt and declining revenue potential due to population loss, New York City faces significant fiscal challenges. Addressing these issues will require careful financial planning and long-term structural reforms.

For those interested in a deeper dive into New York City’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.