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FOR IMMEDIATE RELEASE
August 28, 2024 |
Olga George
Press Secretary
Mayor's Office
olga.george@pittsburghpa.gov
412-627-0679 |
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GAINEY ADMINISTRATION RELEASES PRELIMINARY 2025-2029 REVENUE FORECAST
Department of Finance Presents Findings to Joint Task Force on City Finances
Pittsburgh, PA – Today, the City of Pittsburgh’s Department of Finance released a draft of the proposed 2025-2029 revenue forecast. These projections represent the calculation of what the administration believes the City will reasonably collect in revenue over the next five years. The availability of this preliminary document showcases the administration’s continued commitment to financial transparency.
“I would like to thank Director Jen Gula for analyzing every single revenue line to ensure that the methodologies and assumptions are accurate and reflect the most realistic understanding of economic conditions. The revenue forecast is the foundation for our budget,” said Mayor Ed Gainey. “I look forward to working with Council and the Controller to reach agreement on revenue expectations as I prepare to release a budget proposal.”
There is a projected 5.5% decrease in overall revenue in 2025, mostly attributable to the expiration of American Rescue Plan Act funds supporting the General Fund beyond 2024. Moderate growth of approximately 1.7% year-over-year is projected thereafter. Realty transfer tax revenue is projected to decrease due to continuing high interest rates and a tight housing market. Property tax collections are also predicted to decline as a result of property assessment appeals stemming from the court-ordered reduction in Allegheny County’s Common Level Ratio, as well vacancy rates of commercial properties in the downtown business district. Other revenues, however, continue to increase and have fully recovered to, and in some cases exceeded, pre-pandemic levels.
“Because of our 5-year budget planning cycle, we’ve been laying the groundwork to respond to the effects of the loss of ARPA funds and the Common Level Ratio decision over the last 3 years” said Deputy Mayor Jake Pawlak. “While a 5.5% reduction in revenue presents a challenge, it is one we’ve been preparing for, and one that we can handle.”
Per City Code, the Office of Management and Budget, the Council Budget Office and the Controller must meet before the end of August to review the revenue forecast for the next Operating Budget and Five-Year Plan. Today’s Joint Task Force on City Finances meeting satisfies this requirement for the 2025 budget cycle. The Controller is tasked with certifying revenues within 30 days of the revenue meeting. This forecast forms the foundation for the preliminary budget, which the Mayor must release by September 30, 2024.
The City of Pittsburgh 2025-2029 Preliminary Forecast document can be viewed here.
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