Cincinnati’s Financial Burden Grows, Earning a “D” Grade

Cincinnati’s financial condition worsened in fiscal year 2023, with the city facing a $1.6 billion shortfall. This equates to a Taxpayer Burden™ of $13,400, earning Cincinnati a “D” grade and placing it among the nation’s “Sinkhole Cities,” according to Truth in Accounting’s latest report.

The city’s growing financial obligations were primarily driven by the doubling of the Cincinnati Retirement System’s pension debt. This increase resulted from a reduction in the discount rate from 7.2% to 6.9%, which provides a more realistic projection of future pension liabilities but significantly raises the estimated amount needed to meet obligations. Additionally, the police budget rose by $2 million, driven by increased overtime spending to address violent crime and unexpected officer attrition, which led to higher lump sum payments.
Key findings from the report include:

• Cincinnati had $1.1 billion available to pay $2.7 billion in bills.
• The city’s financial shortfall amounted to $1.6 billion, leaving each taxpayer with a $13,400 burden.
• Pension debt doubled to $1.9 billion, while the police budget increased due to overtime and attrition costs.

With rising pension liabilities and increasing public safety expenses, Cincinnati faces a challenge in balancing financial stability while maintaining essential services. Addressing these fiscal pressures will be critical to ensuring the city’s long-term economic health.

For those interested in a deeper dive into Cincinnati’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.