‘There is no room for error’: Pittsburgh City Controller paints clear picture as city works on budget deficit
PITTSBURGH —
Pittsburgh City Controller Rachael Heisler painted a clear picture of the city’s financial outlook during a meeting at the Pittsburgh Economic Club, saying the city needs to be decisive in its spending, but there are some trends in the right direction.
“We don’t have a lot of options right now, and there is no room for error,” Heisler said on Tuesday.
Heisler stated that the city is expected to face a deficit of more than $20 million in 2026. While she did not comment on the recently unsealed search warrant involving the city of Pittsburgh, she did speak on the financial practices of the Gainey administration and how they handled the city’s budget process.
“The reality is the previous administration did not account for expenditures that we knew we would have in an effort to get the budget to balance,” Heisler said.
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On a positive note, Heisler pointed out that real estate tax collections are on pace with last year, while earned income tax, payroll preparation tax, and deed transfer tax revenues are exceeding last year’s figures and even prior years. She also highlighted the impact of voluntary payments from major nonprofits.
“It is a huge, huge win, and it cannot be overlooked how much more budget flexibility we have because of the money that has come in in the form of voluntary payments,” Heisler said.
However, Heisler noted some areas of concern, including a $5 million drop in parking tax revenue in April, which she attributed to the NFL Draft. Other areas of concern are that charges for services are down, facilities usage fees revenues are not being collected, and interest earnings have continued to decline.
She emphasized the importance of focusing on core city services while trying to get the city back on good financial footing.
“But we are going to have to change other things that are expenses that we’ve had for the last few years, and what that looks like is to be seen,” Heisler said. “But the reality is the current trajectory of spending is unsustainable.”
Heisler also stressed the importance of growth and retaining young people in Pittsburgh after they graduate.
“We need to be a place where it’s easy to do business, and we need to put the welcome sign out, put the welcome mat out, and do everything we can to make Pittsburgh and western Pennsylvania an attractive place to start or grow a business and to start or grow a family,” she said.
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