Report on Pittsburgh's finances shows shows rising costs, $44M deficit in 2025

The state of Pittsburgh's finances is the focus of a report out from City Controller Rachael Heisler.

This is the city of Pittsburgh's annual comprehensive report from the controller's office, the "financial report card" for the city in 2025.

The report shows that the city has some serious concerns when it comes to keeping the books balanced, but some things are going well.

Heisler didn't mince words, however.

"We are in a very delicate position, and we must be vigilant about where things are headed. A problem we can see is a problem we can fix," Heisler said.

At its heart, the report comes down to dollars and cents; $687 million in, $732 million out, resulting in a net loss of $44 million.

According to the controller's office, the reasons are many and great. The report shows some startling statistics, especially regarding city fleet maintenance.

"We spent an average of $1 million a month to maintain our fleet in 2025, with unanticipated costs reaching half of the planned maintenance cost," Heisler said.

How did the city's finances end up this way? According to Heisler, the elephant in the room is American Rescue Plan funding, which is all gone.

"In prior years, we have cautioned that the ARP dollars masked the city's spending problems. The mask is off," Heisler said. "Without the ARP, we would have had a deficit in 2023 and 2024, and now here we are in 2025."

There are some good things, though. According to the controller's office, some city revenue streams are improving.

"Our earned income tax, the city's wage tax, continued to increase."

Heisler says real estate taxes seem to have found their level post-pandemic.

"Pittsburgh is the only city where it is cheaper to buy than to rent," Heisler said. "Pittsburgh has a lower unemployment rate than either the regional or national average."

While there would seem to be excessive red ink in the report, Heisler says the city's financial ship can be turned around with responsible fiscal management.

"Make sure we are doing everything we can to incentivize people to move here and businesses to move here to make you grow as inclusively as we can."