The MuniScore™ Methodology
Thousands of financial line items, distilled into a single 1 to 99 score. MuniScore gives you an immediate read on any municipality's fiscal health. Four factors. Nine metrics. One score.
Score composition
Anatomy of a MuniScore
The MuniScore is the weighted average of four factor scores. Each factor captures a different dimension of financial health, from the local economy to long-term debt obligations.
The weights reflect each factor's reliability: reserves (40%) are the most stable and universally reported indicator; a single-year operating margin (10%) can swing on one-time events.
The framework
4 Factors, 9 Metrics
Each factor measures a distinct dimension of financial health. The weight distribution reflects that fund balance reserves are the most reliable indicator, while a single-year operating margin can swing on one-time items.
Economic health of the municipality. A strong tax base and employed population support revenue and reduce social service demand.
- Median Household IncomeHigher ▲
- Unemployment RateLower ▼
- Poverty RateLower ▼
- Bachelor's Degree+Higher ▲
Evaluates whether revenues keep pace with expenditures. Weighted lowest of the four factors, since annual results are often influenced by one-time events like asset sales or grant timing.
- Operating MarginHigher ▲
Quantifies the financial buffer a municipality holds against unexpected shortfalls. Receives the highest weight because fund balance is the most consistently reported and reliable measure of fiscal resilience.
- Unreserved FB / ExpenditureHigher ▲
- Total FB / ExpenditureHigher ▲
Measures how heavily long-term commitments weigh on the municipality's revenue capacity. Uses Total Governmental Fund revenue as the denominator to capture all governmental revenue streams.
- Debt BurdenLower ▼
- Pension & OPEB BurdenLower ▼
Scoring engine
From Raw Data to Score
Here's how the math works.
Score Each Metric
Compare each raw value against fixed, sector-specific benchmarks calibrated from our municipal finance expertise. Map to a 1 to 99 score using five threshold tiers with linear interpolation between them.
Average Into Factors
Each factor score is the simple average of its available metric scores. If a metric can’t be computed, it is excluded from the average rather than counted as zero.
Weight Into MuniScore
The overall MuniScore is the weighted average of the four factor scores (25/10/40/25). If a factor is missing, its weight redistributes to the remaining financial factors.
Benchmark-to-Score Mapping
Sector-Specific Benchmarks
A school district with 30% reserves is strong for its sector but average for a city. Separate benchmarks ensure each entity type is evaluated fairly.
Fixed Across Years
The same benchmarks apply to every fiscal year. A score of 75 in FY2016 means the same as 75 in FY2024, making multi-year trends directly comparable.
| Metric (Moderate Tier) | City | County | School |
|---|---|---|---|
| Operating Margin | 2% | 2% | 2% |
| Total FB / Expenditure | 22% | 22% | 15% |
| Debt / Total Gov. Fund Revenue | 150% | 150% | 150% |
| NPL+OPEB / Total Gov. Fund Revenue | 150% | 150% | 175% |
Fair comparisons
Benchmarks Tailored by Sector
Every metric is scored against benchmarks calibrated for the municipality's sector. Cities, counties, school districts, and states each have their own thresholds.
Without sector-specific benchmarks, a school district with healthy reserves for its type would appear below average against the all-sector standard. Tailored benchmarks prevent this systematic bias.
Data completeness
Confidence Badges & Missing Data
Not every municipality has complete data for all 9 metrics. MuniScore handles this through dynamic weight redistribution: when a factor can't be scored, its weight is proportionally redistributed among the remaining financial factors.
A MuniScore requires Economy plus at least 2 financial factors. About 76% of scored municipalities receive High confidence, meaning 7 or more of the 9 metrics were available.
Annual Comprehensive Financial Reports
Audited financial statements extracted directly from municipal ACFRs. Digitized and standardized for FY2016–2024.
Census American Community Survey
Economic data from the Census Bureau's 5-year ACS at place, MSA, and state levels. Automatic 3-tier fallback. For the most recent fiscal years where ACS data is not yet available, we use our own forecasted values.
Transparency
Data Sources
MuniScore draws on two primary public data sources. All underlying data is audited or produced by federal agencies. Everything traces back to audited financial statements and federal Census data. No black boxes.
Financial data is extracted directly from audited ACFRs published by municipalities. Economic data comes from the U.S. Census Bureau's American Community Survey.
See It in Action
Pull Up Any Municipality in the Database.
Browse MuniScores for 17,600+ municipalities. Compare financial health across cities, counties, school districts, and states.