PITTSBURGH — On Tuesday, Pittsburgh city controller Rachael Heisler would not directly comment on the District Attorney’s investigation into the administration of former Mayor Ed Gainey and the city’s finances during his time as mayor.
She did, however, talk about the current budget deficit, as current Mayor Corey O’Connor and other city officials look ahead to fiscal year 2027.
“I cannot comment on this in any form, but the city is in a delicate financial position, and we need to maximize the value of every dollar. That’s my perspective and all I can say on it,” Heisler said.
During the Economic Club of Pittsburgh’s meeting, Heisler called the city’s budget deficit “a real problem” but believes the current administration can fix it. Heisler said the city’s 2025 budget deficit was $44 million. It’s projected to be between $25 and $30 million in 2026.
“We’ve been very, very upfront for the last two-and-a-half years about where things are headed,” Heisler said.
She is mentioned multiple times in court documents, which were unsealed Monday, saying her office “had concerns last year during the budgeting cycle when it appeared that the 2026 budget was misrepresenting expenses.” The paperwork also said Heisler was made aware of a Snow Preparedness Fleet Study, that she requested a copy of the study, but “no one had been able to find the study for her.”
Heisler said while the city spends a million dollars a month on maintenance of old vehicles, she praised the efforts of large nonprofit employers, whose voluntary payments will help tremendously.
“A new vehicle costs less to maintain than an old vehicle, and not to mention, it improves service delivery, so everything we can be do to bring in money to pay for the acquisition of new vehicles, we need to be doing as a city,” Heisler said.
The Jock Tax is also mentioned in court documents, saying it was being included in budgeted revenues but was ultimately ruled unconstitutional.
“The jock tax – the facility usage fee – is not coming back. It was struck down by trial court here, the appellate court, and the Pennsylvania Supreme Court. It is not a legal source of revenue. The courts ruled it a tax. We do not have the authority, per the Pennsylvania Constitution, to implement such a tax,” Heisler said.
Heisler also talked about what she called “bright spots,” including the city’s pension fund. She said it remains extremely healthy and is more than 80% funded. She also said several revenue sources increased, including money from the deed transfer tax, earned income tax, and payroll preparation tax.
O’Connor’s initial 2027 budget will be released next week. Heisler says it will show a demonstration and commitment to fiscal restraint.
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