Mayor Daria Devlin has unveiled her proposed 2027 City of Erie budget, a spending plan aimed at closing a nearly $15 million budget shortfall while maintaining essential services and addressing long-standing financial challenges facing the city.
The proposed budget includes approximately $87.8 million in expenditures, excluding pension funds, representing a modest increase of 0.7% over the previous year’s budget when pension expenditures are included in both years. City officials say the proposal balances rising costs tied to contractual wage increases, inflation, and debt service while limiting spending growth through targeted cost-saving measures.
“This is a difficult budget, and the challenges we’re facing did not develop overnight,” said Devlin.
City officials entered the 2027 budget process facing a projected deficit of more than $13 million. Additional financial pressures, including approximately $1 million in contractual salary increases and $600,000 in added debt service costs, pushed the budget gap to nearly $15 million.
To address the shortfall, the proposed budget relies on a combination of spending cuts, increased revenue, and use of existing reserves.
Key components include:
Approximately $3 million in departmental savings through reductions in professional services and operating expenses.
Nearly $600,000 in personnel savings from position eliminations implemented earlier this year.
About $2 million in additional projected revenue from sources including parking, amusement taxes, and contributions.
A one-mill property tax increase expected to generate roughly $2.8 million.
A $6.5 million transfer from the City’s fund balance to close the remaining gap.
The proposal does not include any increases to garbage collection or stormwater fees.
Despite the financial challenges, the administration says it remains committed to providing core services residents depend on every day.
The budget continues Mayor Devlin’s focus on “fixing the basics” by prioritizing road maintenance, snow removal, and improvements to the city’s aging infrastructure while working within tight fiscal constraints.
While the proposed budget addresses the immediate 2027 deficit, city leaders acknowledge Erie continues to face deeper structural financial issues.
The administration plans to explore additional revenue options moving forward, including renewed discussions about a Home Rule Charter, which officials believe could offer greater flexibility in addressing long-term budget challenges and improving the city’s financial stability.
To help residents better understand the budget process, Mayor Devlin announced the launch of a dedicated budget webpage where community members can review budget documents, submit questions, and provide feedback on the proposal.
Questions submitted by residents will help shape a frequently asked questions section as the budget moves through public review. The mayor also plans to release a series of videos in the coming weeks explaining key aspects of the budget, the city’s financial challenges, and the reasoning behind major decisions included in the spending plan.
Residents can find more information and participate in the budget discussion online here and following the City’s official social media channels for updates throughout the review process.