City Controller: Pittsburgh spent more than it made in 2023, projects the trend to continue

PITTSBURGH — It’s a difference of opinions. If you ask the Deputy Mayor about the city’s financial future, he says he’s cautiously optimistic, but ask the City Controller and there is trouble on the horizon.

“Expenditures are outpacing revenues period by more than 2% and that is accounting for the American Rescue Plan Act and that money goes away in December,” City Controller Rachael Heisler said.

Heisler said it’s unrealistic for the city to do nothing when it comes to the financial future. In her office on Wednesday, she unveiled the city’s annual report with the numbers now proving what she’s been saying about trouble on the horizon.

“Twenty-five percent of our tax basis comes from the Golden Triangle. Businesses that were down here and property are worth less than it was pre-pandemic. Buildings are half occupied, and leases are contracting in size,” Heisler said.

So, what’s the answer to building back up that lost tax revenue? The city said it is working with the county to find an answer for the health of the region.

“Bringing more residential uses into Downtown is important to make it a more balanced economy and prevent these kinds of shocks of having an impact in the future,” said Deputy Mayor Jake Pawlak.

That’s something Heisler agrees with as new residents not only bring property tax but more opportunity for economic growth. But as these conversations happen at a city level, Heisler said it’s important for residents to know what’s going on too.

“I think everything needs to be on the table,” Heisler said.

Pawlak doesn’t disagree just with the timing. He believes the time to talk to residents is during the budget conversations as the city does each year in the summer.

“Then we can involve the public in those discussions like we do every year, but that’s not something we have the opportunity to do when doing mid-year changes which is why we adopt budgets and make fiscal decisions on an annual schedule,” Pawlak said.

The city did start a financial task force following Heisler’s initial concerns. The Deputy Mayor said those conversations are continuing and future meetings will dive into the budget on what models look like for the years to come.

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