Deep cuts expected in Corey O'Connor's preliminary budget proposal for 2027
Facing a fiscal crisis, Pittsburgh Mayor Corey O'Connor will release a budget plan on Wednesday for next year that calls for deep cuts.
To close a widening budget gap, the O'Connor administration is scheduled to present Pittsburgh City Council with a preliminary budget aimed at shoring up the city's finances without a tax increase or cutting basic services.
Despite last year's property tax increase and $70 million in nonprofit donations, the mayor has said the city's situation is far bleaker than previously expected, warning of a $250 million budget gap over the next five years and, without immediate cuts, a $30 million to $40 million shortfall next year.
The administration isn't saying, but in meetings with individual council members, KDKA-TV has learned it has proposed a series of possible cuts. These include freezing payments to the Stop the Violence Fund and the Housing Opportunity Fund for affordable housing projects.
According to Pittsburgh Controller Rachael Heisler, each fund is allocated $10 million a year but has large unspent balances. Heisler supports a freeze on the allocation that would cut the budget deficit by $20 million, though some members on council are likely to object.
The Stop the Violence Fund has strong supporters on city council despite the recently released warrant from the Allegheny County District Attorney's Office requesting documentation of the fund's allocations, questioning whether community groups who received grants produced records of work performed.
Sources added that the administration is also looking at lowering its contributions to the city's pension. Unlike Allegheny County's pension fund, the city's fund is solvent and more than 80% funded. Currently, the city contributes more to the fund than is required by law.
Councilman Bobby Wilson said he is open to such cuts that don't require a tax increase, layoffs or service cuts.
"I don't think putting a tax increase on the residents right now is the right thing to do," he said.
Under city code, the administration must present a budget by midnight Wednesday, and sources said the administration is still working on it.
