A report from Truth in Accounting revealed that three of Texas’ biggest cities are in solid financial shape, but five are struggling. The pro-taxpayer group urges people to push public officials to ditch “outdated” accounting practices and embrace clearer, more open financial reporting.
In their Financial State of the Cities 2025 report, Truth in Accounting studied eight Texas cities and found their cumulative debt is a steep $37.45 billion. Austin had the highest share with $9.8 billion in debt, while Plano had the least at $467.9 million.
“The data confirms what most people suspect—Texas’ local governments are addicted to debt. And that has major consequences for today’s taxpayers and tomorrow’s Texans,” James Quintero of the Texas Public Policy Foundation stated.
The cities contribute to the mountainous $621.7 billion debt of all the 75 cities Truth in Accounting reported on.
Of these 75, Truth in Accounting (TIA) found that 54 are “Sinkhole Cities.” That means these cities didn’t have enough money to pay their bills. Five of these 54 sinkhole cities are in Texas. TIA figured out each city’s total debt, its budget shortfall, and how much of that deficit each taxpayer owes.
Texas Scorecard graphic based on Truth in Accounting 2025 report.
Dallas was ranked among the bottom 10 least fiscally healthy cities TIA studied. This put them among Cincinnati, New Orleans, Chicago, and New York City.
“Once again, Truth in Accounting’s State of the Cities report for 2025 shows that many cities in Texas, including major cities like Dallas and Houston are spending into oblivion, and forcing their residents to shoulder an unsustainable and crushing tax burden,” wrote Andrew McVeigh, president of Texans for Fiscal Responsibility.
For their report, TIA examined the annual comprehensive financial reports of these cities, which—except for three non-Texas cities—were dated 2023.
