Allegheny County is grappling with a financial situation that mirrors the struggles of the City of Pittsburgh and its schools, as reported by Allegheny County Controller Corey O'Connor. With federal pandemic emergency funds dwindling, the county confronts an urgent need for a financial strategy overhaul. O'Connor announced that last year marked the first time since 2011 that the county's expenditures surpassed its revenue, painting a stark picture of the fiscal challenges that lurk on the horizon, according to PublicSource via New Pittsburgh Courier.
Last year, Allegheny County's spending totaled over $921 million, overshooting its revenue by $23 million, data from the Popular Annual Financial Report revealed. O’Connor underlined the need for the county to lessen its dependence on costly contract workers and find alternative revenue sources, given that the "rainy day fund" cannot be the forever crutch it has come to be, as reported by TribLive.
In a statement obtained by PublicSource via New Pittsburgh Courier, O'Connor said "Our pension system is struggling for long-term survival," with a funding level that has tumbled from more than 60% in 2014 to a scant 31% now. The use of contract employees who do not contribute to the pension fund exacerbates the issue, threatening the system's stability. The county's property tax revenue—a critical vein of its budget—grew by a paltry 0.1% in 2021, hinting at deeper issues with the assessed property values.
O'Connor and Abigail Gardner, a spokesperson for County Executive Sara Innamorato, have both acknowledged the need for strategic planning. "It is time to be clear-eyed about Allegheny County’s finances and what changes need to be made headed into the next budget season," Gardner stated, as reported by PublicSource via New Pittsburgh Courier. The county's pension dilemma, O'Connor predicts, could plunge into insolvency by the late 2030s unless substantial reforms are initiated. He also suggested nurturing an internal workforce, particularly in health care, to mitigate reliance on contractors and fortify the pension fund.
Addressing the issue of a financially sustainable course amid these challenging waters requires a composite of fiscal prudence, innovative revenue mechanisms, and steadfast commitment to the community's welfare. This could include rethinking the reliance on outside agencies for essential services and reevaluating the management of the pension system to ensure its longevity, as O'Connor proposed. Ultimately, the fraught path Allegheny County treads calls for difficult yet necessary decisions to secure a financially sound future for its citizens.
