Pittsburgh Mayor Corey O’Connor said the city is facing a budget deficit of up to $40 million.This comes after the city raised property taxes by 20% in December.But the mayor said he can erase the deficit without cutting services or raising taxes even further.”We knew, taking this job, that we were going to walk into a situation where we would have to tighten our belts. But the reality is much worse than we thought,” O’Connor said at a news conference Thursday.When former Mayor Ed Gainey left office in January, he said he was leaving a 2025 budget with a small surplus.O’Connor said the city actually had an $8.6 million deficit last year, in part due to $20 million in unbudgeted overtime. He said the projected deficit for this year is much higher.O’Connor said the 2026 budget underfunded employee health care by $9 million and fleet repairs by $1 million to $2 million.There was no funding for emergencies like the major snowstorm in late January.O’Connor said his staff is hoping to avoid a tax hike by eliminating some vacant positions, soliciting donations from nonprofits and scrutinizing all spending.”For us, it’s looking at each line item. There are contracts out there that we know were overspent years ago, and one prime example that could save probably $1.5 million is our comprehensive plan,” O’Connor said.City Controller Rachael Heisler said she believes the deficit can be eliminated without raising taxes.”An additional tax increase should not be necessary. I do think that we can focus on cost containment measures and looking at places that we can grow and really focusing on those two things and hopefully avoid an additional tax increase,” Heisler said.Asked if the deficit can be erased without raising taxes or cutting services, City Council member Erika Strassburger said, “I sure hope so.”

PITTSBURGH —

Pittsburgh Mayor Corey O’Connor said the city is facing a budget deficit of up to $40 million.

This comes after the city raised property taxes by 20% in December.

But the mayor said he can erase the deficit without cutting services or raising taxes even further.

“We knew, taking this job, that we were going to walk into a situation where we would have to tighten our belts. But the reality is much worse than we thought,” O’Connor said at a news conference Thursday.

When former Mayor Ed Gainey left office in January, he said he was leaving a 2025 budget with a small surplus.

O’Connor said the city actually had an $8.6 million deficit last year, in part due to $20 million in unbudgeted overtime. He said the projected deficit for this year is much higher.

O’Connor said the 2026 budget underfunded employee health care by $9 million and fleet repairs by $1 million to $2 million.

There was no funding for emergencies like the major snowstorm in late January.

O’Connor said his staff is hoping to avoid a tax hike by eliminating some vacant positions, soliciting donations from nonprofits and scrutinizing all spending.

“For us, it’s looking at each line item. There are contracts out there that we know were overspent years ago, and one prime example that could save probably $1.5 million is our comprehensive plan,” O’Connor said.

City Controller Rachael Heisler said she believes the deficit can be eliminated without raising taxes.

“An additional tax increase should not be necessary. I do think that we can focus on cost containment measures and looking at places that we can grow and really focusing on those two things and hopefully avoid an additional tax increase,” Heisler said.

Asked if the deficit can be erased without raising taxes or cutting services, City Council member Erika Strassburger said, “I sure hope so.”