Allegheny County budget proposed with no new taxes
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Following a 36% property tax increase this year, Allegheny County is trying to hold the line for next year's budget.
Why it matters: The county increased property taxes for the first time in more than a decade this year, but it avoided an increase for next year amid the uncertainty of how federal cuts and state and federal budget impasses will affect county finances.
Driving the news: Allegheny County Executive Sara Innamorato presented a $3 billion budget Tuesday night with no new tax increases and no county worker layoffs.
- That's a small decrease over last year's $3.1 billion budget. This year's proposed budget was lowered due to federal pandemic aid expiring and a decrease in other federal grants made by the Trump administration, according to county budget officials.
What they're saying: "We have managed our budget exceedingly closely and are focused on finding efficiencies and savings wherever possible," Innamorato said.
Between the lines: The portion of this year's budget that pays for operating expenses like staff salaries is increasing by only about 1.5%, when that portion has typically increased about 3% each year.
State of play: The county is saving about $15 million next year due to rebidding contracts, eliminating funding for 35 chronically vacant positions, and lowering what officials said was overstaffing of contract nurses at county-run senior centers.
- But costs have increased due to inflation, tariffs and a ballooning jail population, county officials said.
Context: Before this year's tax increase, the county was facing a $133 million budget shortfall caused by expiring federal pandemic relief and lost value from commercial property tax assessment appeals.
Friction point: A federal shutdown and state budget impasse are causing Allegheny County to slow hiring and freeze discretionary spending, according to county officials.
- With both unsettled, the county can maintain operations without much pain through the fall, officials said, but things will change if the impasses continue into the holiday season.
- The county doesn't expect any imminent layoffs, but organizations that receive grants through the county will see funds cut off if Congress and state lawmakers don't pass their budgets soon.
What's next: County budget director Tim Cox said the county is anticipating drink tax and hotel tax revenues will lead to a small boost in funds next year when Pittsburgh hosts the NFL draft.
The bottom line: Cox said the proposed federal cuts from the Trump administration would only make balancing the budget harder, pointing to a potential loss of $120 million, but it's unclear if those cuts will pass.
- "That is not something that the county can absorb. Things will be cut," he said.