PITTSBURGH — Mayor Corey O’Connor announced Thursday that his administration will reopen Pittsburgh’s 2026 budget to address “serious concerns” and a multi-million dollar deficit.
The move follows a review of the city’s financial position, which revealed that the 2025 fiscal year ended with an $8.6 million deficit.
The decision to reopen the budget comes after the administration reviewed unaudited end-of-year financials from 2025 and the five-year financial projections passed last year. Mayor Corey O’Connor noted the severity of the situation during a press conference on Thursday afternoon.
“When I ran for mayor, I promised the people of Pittsburgh that I would be honest and transparent about the City’s budget challenges,” O’Connor said. “We knew we’d have to tighten our belts, but the reality is worse than we thought.”
The preliminary end-of-year financials for 2025 show an $8.6 million deficit, contradicting earlier projections that the city would finish the year with a small surplus. This deficit includes $20 million in employee overtime spending that exceeded the original budget. Current projections also indicate the city’s emergency rainy day fund will drop to $84 million over the next five years, significantly lower than the $127 million previously estimated.
The administration identified several specific areas that were underfunded or lacked funding entirely in the 2026 budget. These include $9 million for city health care contributions, $6 million for the Post-Retiree Health care Trust Fund and $2 million for fleet repairs. Additionally, $2.5 million is needed for emergency bridge maintenance and repairs to city boilers and roofs. Other items include $500,000 for fuel costs and $250,000 for the capital repair fund at the 412 Blvd. of the Allies office.
Mayor Corey O’Connor expressed concern regarding how certain city positions are currently being financed. He noted that positions previously supported by the general operating budget are now being funded by the Parks Tax. This tax was a voter-approved initiative intended to increase spending on neighborhood parks rather than covering existing budget gaps. Furthermore, O’Connor noted that several critical positions currently rely on grants without a long-term plan for sustainable funding.
Community programs are also impacted by the budget discrepancies. The 2026 budget currently includes no funding for City Cuts, a program designed to assist seniors, veterans and residents with disabilities with grass cutting services. Despite these challenges, the administration stated it is not currently considering new taxes, layoffs or cuts to critical city services.
O’Connor credited other city officials for identifying these financial risks.
“I’d like to commend Controller Heisler and City Council leadership for sounding the alarm early on this and the hard decision Council had to make last year about taxes,” O’Connor said. “We didn’t get into this position in a year and we won’t solve it in a year. This is going to take responsible financial decisions over the next several years to get us back on track.”
Mayor O’Connor stated he will work with the City Council to focus on core services and restore financial stability.
“I will work with City Council to focus on getting back to basics and delivering core services,” O’Connor said. “My promise to Pittsburgh is responsible leadership, transparency and delivering a city that works for you.”
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