New report highlights Allegheny County's pension fund crisis

Allegheny County is facing a major financial crisis. The pension system is seriously underfunded, and massive infusions of cash are needed now to prevent it from being depleted.

After years of kicking the can down the road, a new report coming out on Thursday says the bill has come due at $1.4 billion. The county will need to come up with an additional $100 million per year for the next 20 years to fix it.

The report by Allegheny County Treasurer Erica Rocchi Brusselars says the pension needs this large stream of new revenue to stay solvent. Unfortunately, there are few good options. And the report is pointing at the taxpayer to help.

On the heels of last year's big property tax hike, the report is suggesting large increases in at least one of four broad-based taxes: property tax, earned income tax, sales tax, or payroll tax. 

Rocchi Brusselars told KDKA Lead Investigator Andy Sheehan that no decision has been made on where the money will come from, but both she and Allegheny County Executive Sara Innamorato say the county needs to address the underfunding now. 

"It is a big problem," Rocchi Brusselars said. 

Innamorato added, "It has really taken us more than 20 years to get to this level of a problem, and it's going to take years and a multi-pronged collaborative strategy to really fix the underfunding that has occurred. I am really proud that our administration isn't kicking the can down the road anymore. And we are acknowledging the challenge. And saying let's do something collaboratively."