Mayor Corey O’Connor Provides Transparent and Honest Update on City’s Financial Position

Since taking office in January, the Administration has reviewed the unaudited end-of-year 2025 financials as well as the 2026 budget that was passed last year.   

“When I ran for mayor, I promised the people of Pittsburgh that I would be honest and transparent about the City’s budget challenges,” Mayor O’Connor said in a press conference this afternoon. “We knew we’d have to tighten our belts, but the reality is worse than we thought.”   

Despite projections last year that the City would end 2025 with a small surplus, the preliminary end-of-year financials indicate an $8.6 million deficit for the year, which includes spending $20 million more in employee overtime than what was budgeted.   

The 2026 budget’s 5-year projections showed spending down of the City’s emergency rainy day fund from $160 million to $127 million over those five years. However, review of the projection showed that it would actually be spent down to $84 million.   

While the Administration’s review of the 2026 budget is ongoing, several areas of concern need to be addressed when the budget is re-opened. The Administration has identified areas that were underfunded, improperly funded or not funded at all.   

Underfunded items that need to be funded in the 2026 budget include, but are not limited to:  

• City Healthcare Contributions – $9 Million  

• Fuel Costs – $500,000  

• Emergency Bridge Maintenance, City Emergency Boiler and Roof Repairs – $2.5 Million  

• Post-Retiree Healthcare Trust Fund – $6 Million  

• 412 Blvd of the Allies Office Capital Repair Fund – $250,000  

• Fleet Repair – $2 million  

Mayor O’Connor also raised concerns that city positions that used to be funded by the general operating budget are now being funded by the Parks Tax, an initiative that voters approved to increase spending in their neighborhood parks, not to plug existing budget holes. Additionally, there is no long-term sustainable funding plan for critical positions that are currently grant-funded. The 2026 budget also includes no funding for community programs like City Cuts, a program that helps seniors, veterans and residents with disabilities with grass cutting.   

“I’d like to commend Controller Heisler and City Council leadership for sounding the alarm early on this and the hard decision Council had to make last year about taxes,” Mayor O’Connor said. “We didn’t get into this position in a year, and we won’t solve it in a year. This is going to take responsible financial decisions over the next several years to get us back on track. I will work with City Council to focus on getting back to basics and delivering core services. My promise to Pittsburgh is responsible leadership, transparency and delivering a city that works for you.”  

The Administration is not currently considering new taxes, layoffs or cuts to critical city services.