Atlanta Faces $521 Million Shortfall, Earning a “C” Grade

Atlanta’s financial condition showed slight improvement in fiscal year 2023, but the city still faced a $521.2 million shortfall. This equates to a Taxpayer Burden™ of $3,100, earning Atlanta a “C” grade and classifying it as a “Sinkhole City” in Truth in Accounting’s latest report.

The city’s financial position benefited from increased revenues, including a $165.8 million boost from higher air passenger traffic and service charges. However, Atlanta’s pension liabilities surged to $1.5 billion due to investment losses exceeding 11%. While retiree healthcare liabilities decreased slightly due to a more favorable discount rate, rising pension costs continue to strain the city’s long-term fiscal health.
Key findings from the report include:

• Atlanta had $3.3 billion available to pay $3.8 billion in bills.
• The city’s financial shortfall amounted to $521.2 million, leaving each taxpayer with a $3,100 burden.
• Despite revenue growth, pension liabilities remain a significant challenge.

Atlanta’s financial outlook underscores the need for strategic fiscal planning to balance revenue growth with long-term financial obligations. Managing pension liabilities will be key to maintaining the city’s economic stability in the coming years.

For those interested in a deeper dive into Atlanta’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.