Issue

A deficit with State control on the horizon

Pittsburgh's growing deficits since pandemic aid ran out, and the risk of returning to state financial oversight.

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  1. Anthony Coghill · 3 stories
  2. Barbara Warwick · 1 story
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City Council

A 2% tax on unearned income could raise $51 million a year.

A proposed unearned income tax could raise $51 million a year for the city. Council members disagree on how to keep the city afloat during a difficult financial period. If passed, Pittsburgh would be the first municipality to enact such a tax. Council sent the bill to a public hearing.

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A city tax on investment incomeA deficit with State control on the horizonPittsburgh's yearly budget fights

City Council

Proposed bills would offer council budget training and put quarterly finance sessions into law.

Last November, council learned of $13 million in unaccounted-for city water bills. In April, it heard the city had pulled $10 million from two trust funds for general expenses. On Oct. 13, two council members introduced five finance reform bills to end such surprises. One would train members to read a budget, and another would put quarterly finance meetings into law.

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Pittsburgh's yearly budget fightsA deficit with State control on the horizonThe bills Pittsburgh didn't pay

City Council

Projected year-end deficit grows to $30.2 million as revenues fall short.

Pittsburgh's finances slipped further in the second quarter. On Sept. 1, a budget official told council the projected year-end deficit has grown to $30.2 million from $24.4 million. Finance staff said the NFL Draft likely cost the city at least $1 million. Still, the budget official was more hesitant than in June to say the outlook would improve.

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A deficit with State control on the horizonThe NFL Draft comes to Pittsburgh

City Council

Controller Heisler urges caution, citing $44.7 million deficit.

Pittsburgh ran a $44.7 million deficit in 2025 and expects another this year. Three years of deficits would put city finances under state control. This week, the controller emailed council arguing against the proposed Downtown TRID, citing that financial strain. She warned the city could owe over $3 million in 2027 without money set aside for early debt payments.

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Downtown's special tax district, the TRIDA deficit with State control on the horizon

City Council

Vehicle repair bills on track to reach $5.3 million this year.

City outreach workers could soon get a wheelchair van to help residents with disabilities. Council moved forward with the request on July 1. Meanwhile, unexpected repairs to the city's aging fleet are on track to cost almost $5.3 million this year, against $3.9 million budgeted. The acting fleet manager said new vehicles should help bring those costs down.

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Pittsburgh's broken-down vehicle fleetA deficit with State control on the horizon

City Council

With ARPA aid gone, 2025 closed with a $44.6 million deficit.

Pittsburgh is spending the last of its American Rescue Plan Act aid, which the controller said masked the city's spending problems. On June 24, she reported a $44.6 million operating deficit for 2025, the first year since 2020 without that aid. The city pulled $33.8 million from rainy-day savings to cover it. Still, state law limits how the city can raise revenue.

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A deficit with State control on the horizon

City Council

A projected $24 million shortfall in 2026 could leave one year before state financial control.

City income from permits, licenses, and investment interest is already falling short this year. The acting budget director said the 2026 deficit could top $24 million. If so, the city would have one more year to turn things around before falling under state financial control. Still, she said the city will have a better picture in about a month.

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A deficit with State control on the horizonThe bills Pittsburgh didn't pay

City Council

City property taxes slated to go up 20%.

Homeowners may see city property taxes rise 20%, or $161 a year per $100,000 in value. Council voted six to three for the increase, the city's first since 2014. It would mostly cover expected shortfalls in utility costs, overtime pay, and fleet maintenance. Now, the mayor has until Dec. 30 to veto it, and council needs only six votes to override.

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Pittsburgh's yearly budget fightsA deficit with State control on the horizon