Chicago – February 06, 2026
Chicago finished fiscal year 2024 with a $41.1 billion gap between the money it has available to pay bills and the obligations it owes, according to a new report from Truth in Accounting, placing the city among the worst financially managed major cities in the nation.
The nonprofit’s Financial State of the Cities 2026 report analyzed the five largest U.S. cities using audited financial statements. Chicago earned an “F” grade and a taxpayer burden of $42,600 per taxpayer.
Only New York City ranked worse, though Truth in Accounting CEO Sheila Weinberg said Chicago’s finances appear stronger than they are because key entities like Chicago Public Schools and the park district are excluded from the city’s reports.
Despite the findings, Chicago officials continue to claim the city operates under a balanced budget, a claim Weinberg said depends on what she called “shenanigans” in the city’s accounting practices.
“They only include the expenses they’ve paid, not all the expenses they’ve incurred,” Weinberg said. “They also include loan proceeds as revenue and still claim the budget is balanced. In the real world, borrowing money to balance your budget would be insane. But in government budgeting, that’s how they do it.”
Chicago’s four major pension funds are among the most underfunded in the nation, with only about 25 cents set aside for every dollar promised in benefits, according to Weinberg. The city’s unfunded pension liability exceeds total employee payroll by more than eight times.
