Allegheny County elected officials are facing tough decisions as the county government is spending more than it’s bringing in via tax revenue.
Last month, Allegheny County Controller Corey O’Connor warned County Executives that revenue in the first six months of 2024 weren’t covering expenses. In fact, O’Connor told the panel of elected officials in an interim report that the county increased expenses even while revenue decreased. According to O’Connor, the county deficit could reach $60 million by the end of 2024.
To fill the hole, Allegheny County Executive Sara Innamorato unveiled a county budget for 2025 that increases property taxes by more than 46%. Innamorato called the tax hike part of a “fiscally responsible budget” after what County Council member Bethany Hallam, an Innamorato ally, called a “mess” she “inherited” from the previous administration.
Falling revenues are in part the result of commercial properties in downtown Pittsburgh declining in value. Complicating the matter is the county’s reliance on federal COVID-19 relief funding doled out by Washington the last four years. That money is drying up and must be allocated or spent during 2024.
County Council member Sam DeMarco criticized the budget proposal, saying the tax increase doesn’t have to be that large and that he has recommended austerity measures. Additionally, DeMarco revealed the county has been running a “structural deficit” since 2021. John Petrack of the Realtors Association of Metropolitan Pittsburgh also criticized the tax hike, saying it’s difficult “to see the justification” of such an increase, and asking for spending cuts to be considered.
Innamorato’s property tax hike would add roughly $200 per year to a house valued at $110,000. The County Executive also proposed increasing the homestead exemption from $18,000 to $21,000.
County Council will spend the next few weeks debating the budget, which calls for $3.1 billion in spending, 3% more than what was budgeted for this year. Innamorato argued the property tax increase was important so that “critical services” could be protected from budget cuts, saying the county “cannot cut our way to a balanced budget.”
Council is set to hold two hearings on the budget on October 17 and 30.
