Columbus’ Financial Health Shows Modest Gains, Earning a “C” Grade

Columbus’ financial condition showed some improvement in fiscal year 2023, but the city still faced a $699.5 million shortfall. This equates to a Taxpayer Burden™ of $2,000, earning Columbus a “C” grade and classifying it as a “Sinkhole City” in Truth in Accounting’s latest report.

The city reported a $258 million surplus in 2023, with revenues increasing by 12%, largely due to a 56% rise in income tax receipts. However, expenses grew at a faster rate of 22%, highlighting potential fiscal challenges ahead. On a positive note, Columbus made progress in reducing long-term liabilities, cutting pension debt by $62.2 million and retiree healthcare debt by $29.6 million.
Key findings from the report include:

• Columbus had $3 billion available to pay $3.7 billion in bills.
• The city’s financial shortfall amounted to $699.5 million, leaving each taxpayer with a $2,000 burden.
• Revenue growth outpaced prior years, but rising expenses present financial risks.

While Columbus’ financial position has improved, the city must carefully manage rising costs to ensure long-term fiscal stability. Strategic budgeting and disciplined financial planning will be crucial to maintaining positive momentum.

For those interested in a deeper dive into Columbus’ finances—and how it compares to other major U.S. cities—you can read the full Financial State of the Cities 2025 report here.