Highmark, UPMC pledge $45M to Pittsburgh
Add Axios as your preferred source to
see more of our stories on Google.
Photo illustration: Axios Visuals. Photo: Ryan Deto
Mayor Corey O'Connor on Thursday unveiled a five-year, $45 million capital funding partnership with Highmark and UPMC to support citywide emergency response.
Why it matters: The deal with the region's two largest health care providers marks the most significant commitment yet from Pittsburgh's nonprofits under O'Connor, as city leaders grapple with mounting budget pressures.
Zoom in: Highmark will invest $20 million over five years to support first-response services. The initial investment will focus on upgrading the city's fire department vehicles.
- Following its $10 million January gift for ambulances, which freed up city funds for new snowplows, UPMC will donate an additional $25 million over five years for EMS vehicles and equipment.
The big picture: The city's nonprofits don't pay property taxes, despite occupying roughly 20% of Pittsburgh real estate. Efforts to secure financial support from the biggest players have spanned multiple administrations, but the tactics have varied.
- O'Connor has pursued mission-aligned voluntary contributions from the city's large nonprofits — an approach similar to former Mayor Bill Peduto's.
- O'Connor's strategy has diverged from his predecessor, former Mayor Ed Gainey, who sued the nonprofits, hoping the courts would force payments. The city spent more on legal fees than it recovered in taxes during that process.
By the numbers: O'Connor has now secured more than $70 million in nonprofit commitments, including a $5 million, five-year partnership with Pitt, $2 million from the PNC Foundation for snowplows, $3 million from Carnegie Mellon, and millions more from other organizations.
Between the lines: The city is headed toward a $24 million deficit despite a 20% property tax hike and budget overhaul, TribLive reports.
- A recent Keystone Research Center report found that if the region's five largest nonprofits lost their tax exemptions, they would generate about $133 million a year for the city, Allegheny County, and Pittsburgh Public Schools.
What they're saying: The contributions will ensure first responders "have the equipment to provide proper care, reliable vehicles to respond, and facilities that ensure the highest quality of service for years to come," said O'Connor.
What we're watching: Whether nonprofit contributions can meaningfully ease Pittsburgh's long-term fiscal woes.