Cleveland’s Financial Strength Grows, Earning a “B” Grade

Cleveland’s financial condition continued to improve in fiscal year 2023, earning the city a “B” grade from Truth in Accounting. With a $400.9 million surplus, Cleveland remains classified as a “Sunshine City,” meaning it has more than enough money to cover its financial obligations. This equates to a Taxpayer Surplus™ of $2,900.

The city’s financial position improved by $400.9 million, largely due to strong investment earnings from higher market returns and a reduction in its share of Ohio’s pension system debt. Cleveland’s revenue growth was also driven by a $19.9 million increase in income tax collections, bolstered by lower unemployment, and a 15.8% rise in other tax revenues as sports, entertainment, and hospitality industries rebounded. Despite these gains, the city still faces $1.1 billion in unfunded pension liabilities, underscoring the need for careful long-term financial planning.
Key findings from the report include:

• Cleveland had $2.7 billion available to pay $2.3 billion in bills.
• The city’s financial surplus grew to $400.9 million, equating to a $2,900 Taxpayer Surplus™.
• Higher investment returns and increased tax revenues strengthened Cleveland’s finances, despite ongoing pension liabilities.

Cleveland’s continued financial growth highlights its resilience, but managing pension liabilities and market volatility will be critical to maintaining long-term fiscal stability.

For those interested in a deeper dive into Cleveland’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.