PITTSBURGH — Pittsburgh City Council approved a 20% real estate tax increase on Sunday in an effort to remedy a roughly $20 million budget deficit.
It would be the first tax increase in the city in more than a decade.
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Councilperson Barb Warwick had initially proposed a 30% tax hike, but said this was a sort of compromise.
One of the budget cuts previously considered was for the Stop the Violence program.
Council members voted on Sunday to only fund $5 million on top of what’s already left in the budget. That’s down from the original $10 million in that budget season.
Warwick says the total cuts amounted to about $1.5 million, with savings found in overtime pay in the police department by changing vacancy allotments.
Councilperson Bob Charland defended the millage increase, citing recent deadly crashes in the city. Without an increase, he said, services in the city will be lacking, particularly in the southern areas.
A statement from Mayor Ed Gainey’s office reads in part, “As the process moves forward, the Mayor will thoughtfully evaluate the decisions made by City Council today, particularly in light of the significant tax increase and numerous modifications to planned spending that were approved.”
The mayor now has 10 days to approve the budget proposal, veto it or do nothing.
A statement from City Controller Rachel Heisler reads in part, "We’ve known for years that this is where we would end up. Between the loss of the Non-Resident Sports Facility Usage Fee, the rapidly shrinking Common Level Ratio, and skyrocketing inflation at the national level, we simply need more revenue."
Channel 11 reporter Frederick Price is gathering reactions tonight. Check back for updates on this developing story.
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