Mayor Ed Gainey says Pittsburgh is prepared for fiscal challenges in final budget address

PITTSBURGH — As Mayor Ed Gainey’s administration nears its conclusion, he says Pittsburgh is poised for future challenges.

During his final State of the City address, Mayor Gainey emphasized the administration’s commitment to prioritizing Pittsburgh’s residents, maintaining fiscal responsibility and ensuring vital services remain funded despite financial constraints.

“My budget proposal for the coming year reflects our ongoing dedication to Pittsburgh’s future, even amid difficult financial circumstances,” Gainey said.

He says his administration cut non-essential spending by $3.5 million, eliminated vacant positions that no longer serve city needs and ensured vital services were fully funded.

Gainey says the city has weathered a tough fiscal period, thanks in part to the city’s five-year financial planning ordinance that allowed his administration to anticipate the lean years in 2025 and 2026. He says the city is poised to close the year with a modest surplus.

The 2026 proposed budget is “similarly designed” to 2025, Gainey says, intended to guide Pittsburgh through remaining fiscal challenges. It also reportedly balances financial stewardship with investment for the city’s future.

Gainey also highlighted the administration’s focus on safety, which he says has reduced workers’ compensation claims by over half, saving nearly $5 million annually.

Safety was also a catalyst for larger initiatives, like a $600 million reinvestment plan that’s set to bring new housing and a refresh meant to keep Downtown vibrant.

“We’ve brought our downtown back from the brink and positioned it for long-term success,” Gainey said. “Pittsburgh’s future is brighter than ever.”

The administration also focused on equity and inclusion, a subject that extends into violence prevention and public safety. As part of this, the city reauthorized the Stop the Violence Fund and invested in community-based organizations.

“These partnerships have contributed to an 8-year low in homicides, with a 37% decrease and no homicides among youth ages 13 to 17 in 2024,” Gainey said. “These aren’t just numbers. These are lives saved, families kept intact, futures protected.”

And, Gainey called the Land Bank out as a success, since it has sold or is in the process of selling over 170 properties under his administration.

Gainey says the city has a solid foundation for growth and progress.

And while Gainey says the city is on solid foundation for growth and progress, other city officials are more concerned about the 2026 budget.

City Controller Rachael Heisler issued a statement, calling the budget “not a realistic document.” Specifically, highlighting that there may need to be a tax increase because of spending that’s not accounted for in the budget. Her full statement reads:

“As I have said throughout the budget process, this is not a realistic document. The numbers may appear to add up on paper, but the details tell a different story – and just because the Mayor’s speech and the current draft of the budget have no plan for a tax increase doesn’t mean that one won’t be necessary. The Controller’s office has already calculated more than $70 million in spending over the next five years that is not accounted for in this budget: utilities, overtime, and judgements. This is money the city is going to spend, and we’d be wise to budget for it now. The only way to get this budget to balance is more revenue, and it’s very likely to come in the form of a property tax increase. We also need a county-wide property reassessment, especially as the Common Level Ratio continues to diminish property tax revenue.

“There are other efforts that must continue to move forward as it relates to revenue, including pursuing strategies for long-term growth and the ongoing dialogue to secure sustainable long-term voluntary payments from our large non-profits, but this budget will not get to balance without additional revenue next year. It’s unfortunate we’re in this situation, but as I’ve said from the beginning, my top priority is to make sure the public understands where the city stands financially. We need to demonstrate some fiscal restraint as well and be good stewards of public money.

“For all of us in City government, we must be honest with the public about what it will take to keep the City running and keep providing essential services over the next five years. This budget, as currently drafted, does not do that. I hope City Council quickly recognizes the deficiencies with this document, works to address both the spending and revenue realities, and puts us on more realistic path over the course of the next six weeks.”

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