Pittsburgh Mayor Corey O’Connor presented the 2027 budget proposal in his State of the City Address on Monday.
The City of Pittsburgh is facing what O’Connor previously said is a $250 million deficit over the next five years.
He said on Monday, the plan is to use $28 million from the “rainy day fund.”
“Starting with this budget, we must bring back strong financial responsibility,” O’Connor said. “It’s going to take decisive leadership, putting the future of our city ahead of politics, and making tough decisions.”
A group of people rallied ahead of the speech in support of Housing Opportunity and Stop the Violence, two city funding programs that will not receive additional funding next year under the proposal.
“We still have funds from previous years that will continue to fund these programs and those trust funds that we have learned about, and have been, you know, success stories,” said Bobby Wilson, who represents District 1 on Pittsburgh City Council.
The mayor’s staff said there will be millions of dollars in the budget for contracts with violence-prevention organizations.
“So, our commitment is on the focus, not the structure. And as I’ve met with organizations and people who have expressed concern, I’ve shared that – that we will continue to fund the priorities and we’re seeing it happen in the streets with violence being down in a positive way with great work by our outreach teams,” Chief of Staff Dan Gilman said.
When it comes to housing, O’Connor said millions will be transferred to the Urban Redevelopment Authority to invest in affordable housing, home ownership, and small business development.
“The trust fund changes. It is a transfer to the URA, allowing the URA to reprogram that money how it wants to be,” said Pittsburgh City Councilman Bob Charland, of District 3. “Personally, the Housing Opportunity Fund for me is the most challenging portion of this budget. I can’t always say that city services are given to my district the same way they’re given elsewhere in the city, but the Housing Opportunity Fund is something that does serve my district really well.”
The mayor announced other cost-saving measures like eliminating several vacant positions and turning down hundreds of department funding requests.
The budget does not propose new taxes for city residents.
“I think, you know, we’re on a path to really, you know, make the right choices in terms of spending. And I think there’s going to be some hard decisions that they make. You can already see that kind of play out today,” Wilson told Pittsburgh’s Action News 4 Reporter Jordan Cioppa.
A public hearing will be held before council votes on the budget in December.