Toledo Faces $222.6 Million Shortfall, Earning a “C” Grade

Toledo’s financial condition showed improvement in fiscal year 2023, but the city still faced a $222.6 million shortfall. This equates to a Taxpayer Burden™ of $2,200, earning Toledo a “C” grade and classifying it as a “Sinkhole City” in Truth in Accounting’s latest report.
The city’s financial position improved as reported revenues exceeded expenses, but substantial outstanding liabilities remain. Toledo has opted for gradual payments on these obligations, while its unfunded pension liabilities remain uncertain due to market volatility and fluctuating actuarial assumptions.
Economic growth has helped stabilize Toledo’s finances, with thousands of new jobs created and over $2 billion in capital investment in recent years. However, failing to address long-term liabilities could eventually lead to higher taxes for residents as the city works to cover past obligations.
Key findings from the report include:

• Toledo had $723.7 million available to pay $946.3 million in bills.
• The city’s financial shortfall amounted to $222.6 million, leaving each taxpayer with a $2,200 burden.
• Economic development has strengthened financial stability, but unresolved liabilities pose future risks.

Toledo must take strategic steps to manage its long-term financial obligations while ensuring continued economic growth and stability.
For those interested in a deeper dive into Toledo’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.