The Fiscal Health of Washington DC is great! If you’re curious about how well your city is managing its finances, there’s a fantastic resource you should know about: Truth In Accounting. It has detailed data on the national debt, and the fiscal health of states and cities. Go find yours!
Washington DC
The good news is Washington DC has been doing great!
They had an “A” grade in 2021.
And they had a “B” grade in 2019.
For the most recent data they have, for 2023, they were the #1 ranked city for fiscal health. They had a “B” grade for 2023. You can go to this URL and scroll to page 172 for all of the details.
Summary Details
Washington, D.C.’s financial condition worsened a bit from 2022 to 2023. But based on its audited financial report for fiscal year 2023, it still had $2.5 billion available to cover future bills. This resulted in a Taxpayer Surplus™ of $9,000 per resident. This earned a “B” grade from Truth in Accounting and maintained its status as a Sunshine City.
The Truth In Accounting website says a Sunshine City is a top 5 city as far as its fiscal health. And a Sinkhole City is a bottom 5 city, and not in good fiscal health.
Key points
Key points are:
- Washington, D.C. pre-funds retiree healthcare benefits, setting aside 91 cents for every dollar of obligations. Many other cities do not pre-fund such commitments.
- The city’s pension systems are nearly 100% funded!
Conclusion
If you are considering buying a new home in Washington DC, this should give you a positive feeling. Washington DC is fiscally well run!
Have questions on buying a home in Washington DC? Please schedule a call or email me.
Brian Martucci is a loan officer for Capital Bank Home Loans, a division of Capital Bank, N.A. He has been in the mortgage industry since 1986 and has served in a number of roles, including loan processor, loan officer, mortgage broker, branch manager, and vice president. Brian Martucci – NMLS# 185421. His opinions do not necessarily reflect the opinions and beliefs of Capital Bank Home Loans or Capital Bank. Capital Bank, N.A.- NMLS# 401599. Click here for the Capital Bank, N.A. “Privacy Policy”.
