PITTSBURGH — Allegheny County Executive Sara Innamorato presented a $1.25 billion proposed operating budget for 2027 to the County Council on Tuesday night.
The proposal includes no tax increases and no staff layoffs.
The proposed operating budget represents a 4.7% increase over the previous year. In addition to the operating funds, the spending proposal includes a $160 million capital budget and a $1.7 billion grants and special accounts budget.
The operating budget increase includes a one-time $10 million payment on a 2010 bond issuance and $21 million spent to draw down funding from the State Department of Human Services and Juvenile Probation.
Without those two specific line items, the operating budget increase would be 2.0%, meaning the majority of county departments will operate with a smaller budget in 2027 than in 2026.
“Just like families across Allegheny County, at the county government we are being asked to do more with less. State and federal cuts to important human services programs will take a toll on our budget next year. And while we have worked hard to find significant cost savings everywhere we can without reducing services, inflation and other cost drivers are still applying upward pressure on our expenditures,” Innamorato said. “Nevertheless, we are being creative with our funding opportunities, block grants, corporate and philanthropic partner asks to fund catalytic programs that spur our economic growth and improve life for Allegheny County families.”
In a press release, Innamorato broke the budget down into three key categories. They are as follows:
INITIATIVES
- Housing and Eviction Prevention: $4 million from capital and funding rental assistance with $7 million from operating and grant funds.
- Forward with Families, Childcare Expansion: $5 million (offset with foundation support).
- Highlands Juvenile Detention Center: $33 million (capital improvements).
- Kane facilities: $3.5 million (capital improvements, RACP recipient).
- Main Streets Allegheny: $3 million.
- Police and Fire Training Academy: $1 million (capital improvements, RACP recipient).
- Targeted Site Development for Economic Development: $2 million.
- Trail Development: $2.4 million.
COST SAVINGS
- For the 2026 budget, 35 vacant positions were closed to save $2 million; for 2027 we are closing 150 vacant positions to save $9 million.
- Anticipated savings of more than $30 million over the next four years due to various initiatives like ending our reliance on agency nurses and healthcare changes.
- Refinanced outstanding debt to save $12 Million in 2028; and rebidding contracts and insurance to save another million.
- Centralizing some operations in IT, HR and Budget for long-term efficiencies and improvements.
- Jail population has stabilized, which was driving unanticipated costs at the end of 2025.
COST DRIVERS
- $10 million debt payment committed by a prior administration.
- Negotiated wage increases for union employees.
- Increased gasoline and diesel costs are certainly putting pressure on our budget.
- Inflation and federal decisions on tariffs have also driven up costs for things like road salt.
- Federal cuts to DHS will cost millions of dollars in mental and behavioral health and addiction support.
- DHS is also facing $5 million in state cuts to our aging programs.
- Expiring federal funding for health department positions will add $400,000.
- Pharmaceutical expenses for residents at the Kanes and ACJ will add $1 million.
- Residential placement costs in Juvenile Court will add $5 million.
- Increasing overtime for all public safety personnel will add $3 million.
The budget is not finalized and still needs approval from the council.
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