Pittsburgh City Council 2026 Budget & Tax Hearing (Dec 20, 2025)
Pittsburgh City Council 2026 Budget & Tax Hearing (Dec 20, 2025)
On December 20, 2025, Pittsburgh City Council convened a public hearing to deliberate on the 2026 fiscal year budget amendments, specifically focusing on three bills (2451, 2452, 2461) regarding procurement, contract letting, and tax interest rates, alongside a proposed 30% property millage increase to address a projected budget shortfall. Budget Director Pete McDevitt presented a five-year forecast, noting that without intervention, the city faces critical deficits, though he cautioned that a 20% increase is also a viable option to balance the budget without immediate deep cuts. The hearing featured extensive public testimony regarding the necessity of the funds for essential services like the Food Justice Fund and Stop the Violence Initiative, while simultaneously debating the fairness of the tax proposal against the backdrop of under-assessed properties and non-paying major nonprofits.
Consent Calendar
- Adoption of Bill 2451: Resolution authorizing participation in cooperative purchasing agreements for the 2026 fiscal year.
- Adoption of Bill 2452: Resolution providing for the letting of contracts and use of existing contracts for city department purchases, maintenance, and repairs for 2026.
- Adoption of Bill 2461: Ordinance fixing the interest rates on delinquent earned income and home rule taxes for the year 2026.
- Adoption of Resolution 2455: Fixing the authorized number of city employees for 2026 (noted for potential discrepancy with current Fire Bureau staffing levels).
Public Comments & Testimony
- Support for Social Services & Food Justice: Several speakers, including Dan McCarthy (Just Harvest), Gabriel Mitnick, Jamie Marie Christian (Let Us Start Up the Beat Sustainability Collective), Joel Malloy (C.A.R.I.C.), Forrest Kesterson, and Dr. Karen Hall (OzNo, Inc.), expressed strong support for maintaining or increasing funding for the Food Justice Fund and Stop the Violence Initiative. They argued these programs are essential infrastructure for public health, community stability, and violence prevention, noting that federal cuts and SNAP delays have significantly increased food insecurity (citing a 25% increase in food insecurity and a 10% increase in child food insecurity).
- Opposition to 30% Tax Increase: The majority of registered speakers, including Faith Mews, Chris Parsnik, Stormy Morris, Alita Hermanowski, Bailey Passano, John Seifer, Gina Polaris (later identified as Gina P.), April Clissora, and Harvey Holtz, expressed strong opposition to the proposed 30% property tax increase. They argued the burden falls disproportionately on working-class residents, small landlords, and renters (via rent hikes), while large non-profits (UPMC, universities) remain under-taxed. Many called for a reassessment of property values by Allegheny County and urged the city to negotiate better Payments in Lieu of Taxes (PILOT) from major nonprofits.
- Alternative Revenue Proposals: Multiple speakers, including Chris Beam, Faith Mews, Bailey Passano, Russell Dreyer, and Alison Escobar, suggested that the city should target the five largest non-profits (UPMC, AHN, Pitt, CMU, Duquesne), noting they hold over 20% of property value but pay negligible taxes. Others proposed taxing capital gains, sports betting revenues, or implementing a split-rate tax structure (taxing land higher than buildings) to address the deficit more equitably.
- Concerns Regarding Basic Services: Ralph Socorro and John Kett emphasized the critical need for additional revenue to address the Pittsburgh Bureau of Fire's fleet replacement gaps (estimated at $30 million for 2026) and general infrastructure deficits, questioning if a tax increase alone would translate to tangible service improvements without strict accountability measures.
- Balanced Perspectives & Nuance:
- Laura Shew Weens expressed support for the tax increase to ensure the city remains fully funded and to support the PRT Partner Pass program.
- Mel Packer acknowledged the deep fiscal crisis, stating that "chopping a piece" of the budget is insufficient, and that while a 30% hike might feel excessive, a 20% increase might be necessary to fund basic services, arguing that some long-term residents can afford it despite local disparities in assessment.
- Aaron Bergen expressed willingness to accept a 30% increase specifically to fund pool reopenings for his daughter.
- Addy Lord and Casey Brown advocated for holding the line on social services while acknowledging the necessity of revenue, suggesting that the city must prioritize "fairness" in tax structures, such as capital gains taxes, to protect lower-income homeowners.
Discussion Items
- Budget Forecast & Fiscal Reality: Budget Director Pete McDevitt presented a five-year forecast showing positive operating results only if a tax millage increase is implemented. He outlined scenarios for 10%, 15%, 20%, and 30% increases, noting that a 20% increase would result in an approximate $240 annual bill increase for a home with a $100,000 taxable value, though senior exemptions could lower this significantly.
- Fire Fleet & Staffing: Councilman Rosario and others raised specific concerns that Resolution 2455, fixing the number of firefighters for 2026, does not accurately reflect current staffing levels (696 firefighters), potentially putting the city in violation of authorized limits immediately upon enactment. They called for a transparent funding strategy to address the $30-40 million gap in fire apparatus replacement.
- Tax Increase vs. Cuts: A significant debate occurred regarding the necessity of a tax increase versus budget cuts. Councilwoman Gross expressed reluctance to vote for a 30% increase, citing recent savings ($8 million in one week on comp plans and salt dome issues) and the need to explore deeper cuts and private sponsorships first. Councilman Strasberger emphasized the historical context of the city being under-occupied post-1979, necessitating revenue to fund infrastructure designed for a larger population, while Councilman Warwick noted the lack of consensus on the exact budget gap and the difficulty of making a final decision within 24 hours.
Key Outcomes
- No Final Vote on Tax Bill: The meeting concluded with the council acknowledging the urgency but deferring a final vote on the 30% millage increase. Councilwoman Warwick stated she is willing to consider a smaller increase if significant budget cuts are made first, while Council members Strasberger and Warwick emphasized their commitment to finding a solution that balances fiscal responsibility with community needs.
- Commitment to Transparency: Councilwoman Strasberger and Councilman Wilson pledged to ensure any additional revenue generated is transparently allocated to specific needs, including the fire fleet, snow plows, and essential public services, while protecting the fund balance (rainy day fund) for future unknowns.
- Continued Advocacy on Nonprofits: Council members reaffirmed the city's stance on holding non-profits accountable, with Councilman Mosley noting the historical difficulty of legal challenges against entities like UPMC and advocating for legislative changes at the state level to allow for a more equitable tax structure.
- Moment of Silence: Council President convened a moment of silence for I Shir Kami, a Carrick High School student who passed away after being hit by a sliding car.
- Adjournment: The public hearing was adjourned with instructions for the council to deliberate further within 24 hours before a final budget vote.
Meeting Transcript
Good morning and welcome to Pittsburgh City Council's public hearing on Saturday, December 20th, 2025, relative to the 2026 tax and budget amendments legislation. Would the clerk please read the title of the bills? Bill 2451. Resolution authorizing the City of Pittsburgh to participate in applicable cooperative purchasing agreements for goods, materials, equipment, supplies, services, or construction as authorized by the Commonwealth Procurement Code, and the Pennsylvania Intergovernmental Cooperation Law for the 2026 fiscal year. Bill 2452, resolution providing for the letting of contracts and for the use of existing contracts for the purchase of materials, supplies, and equipment for city departments, and the maintenance, repair, rental, and or leasing rehabilitation, renovation, inspection, or servicing of city buildings and facilities, and for any miscellaneous services in and for any city departments and providing for the payment of the cost thereof for the 2026 fiscal year. Bill 2453.03. Bill 2461 Ordnance Amending the Pittsburgh Code Title II Fiscal Article 7, Business Related Taxes, Chapter 245, Earned Income Tax, Section 245.03, Declaration and Payment of Tax at Subsection D so as to fix the rate of interest on delinquent earned income tax for the year two thousand and twenty-six. So as to fix the rate of interest on delinquent home rule tax for the year two thousand and twenty-six. For the record, we're joined by Councilman Strasberger, Councilman Warwick, and Councilman Wilson is with us online. And then we'll take testimony from Register Speakers. Thank you, Council President. Let me just pull this up. Okay, this is um the same presentation that we gave council members a couple weeks ago to go over uh the the just a quick overview of the budget. So quick agenda is to go over the five-year forecast and what uh the council budget office thinks is a realistic version of the five-year forecast with actual numbers that we pay out every year, and then to look at potential uh operating cuts to the budget and potential millage increase scenarios. So this is the five-year forecast that was sent over in the mayor's operating budget, and you can see the operating results are positive in each of the years, and we stay within the threshold of the ten percent minimum fund balance as a percentage of expenditures. Um our office has kind of brought up a lot over the past six weeks or so, it would save us just under three million dollars. Then we looked at a few throughout the city. A little bit more impactful here. We looked at the five year forecast our way out of. If we utility our way out of this, we had various options for millage increases. So this shows options for a 30% increase or a 20% increase for 15 or 10. Um the average residential property taxable value in the city of Pittsburgh is around 100,000. So a 30% increase would increase uh the total bill by 246 dollars per year, or about $4.75 a week. That it's also important to point that this does not take into account possible reductions to the assessed values of those properties for things like the homestead exemption or senior tax relief reductions. So if you are a senior that uh qualifies for this and you own and live in your house and it's taxed at 100,000, that would actually drop the value, the taxable value down to 45,000 a year. Uh so it would be somewhere closer to 140 increase um at a 30% millage increase. So this is what the five-year forecast would look like with a 20% millage increase, but also not applying any of those cuts. You can see that we are able to pay all of those bills that we highlighted as the most urgent and important to address first. Uh you will have a positive operating result, and you will hit your fund balance uh percentage as uh as a percentage of expenditures in each of the years. This doesn't take into account potential increases for um increased transfers to pay-go to pay for fleet and demos, which we sorely need. Uh it still has the outer year increases to salaries for non-union employees at one or two percent in each of the years. Uh and it still doesn't address things like um maintenance for vehicles, but a 20% increase, and we just showed this as an example. This isn't a recommendation, we just wanted to put stuff out in front of you so you could take it in and digest it. Um this would be able to get you to uh a balanced budget. That was it. Thank you very much. Councilman Schlossberger. May this is it possible for this? We realized that this is these were really small numbers for this to be included as an attachment to the uh this budget hearing, this public hearing, as well as any relevant legislation. Thank you very much. Thank you. That director reflect we've also been joined by Councilman Sharlin. We're now going to move on to testimony from our public speakers. Once your name is called, please provide your restate your name, provide your neighborhood for the record. You'll be given three minutes to speak. After we have exhausted our list of registered speakers, we'll take comment from anyone else in chambers, and you will also be given one minute to speak. Our first registered speaker is Daniel McCarthy. Uh my name is Dan McCarthy. I live in Shady Side, and I'm an organizer at Just Harvest. Just Harvest works to address hunger in Allegheny County at the route through economic injustice and through a focus on public policy, food access, and community power.
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