In the shadow of a looming $20 million budget deficit, the Pittsburgh City Council has made its move with a 20% real estate tax increase. The decision, reached during a rare Sunday session, attempts to bridge the financial gap by adjusting the city's income strategy. WPXI reported that the council cast a 6-2 vote in favor of the hike, which marks the first such uptick in more than a decade. Divisive within the council and among citizens, the increase was a compromise, toned down from the 30% initially proposed by Councilperson Barb Warwick.
Councilwoman Theresa Kail-Smith stood against the plan, underscoring the consecutive layers of tax increases from county, public school, and now city levels. In her interview with CBS News Pittsburgh, Kail-Smith conveyed her concern, noting the challenge this represents for residents, "I feel like it was somewhat of a compromise. I think for our residents, though, it's a challenge." The council's session ended with an approved spending plan totaling over $693 million, trimmed by making cuts, including in areas like the city's violence prevention program, which will see reduced funding in the coming year.
The Stop the Violence program, a focal point of budget contraction, will operate with half of its usual $10 million. Despite the reduction, Warwick assured that no immediate program cuts would be necessary as existing funds carry over into the new year. "The little bit of help we have is not enough for people who are middle class, who aren't eligible for a lot of this stuff, and they're getting hit extremely hard from all different angles," Kail-Smith added, as reported by CBS News Pittsburgh.
Now, the budget plan awaits Mayor Ed Gainey's assessment. His administration is to forecast the impact of the tax increase on local businesses, already grappling with prior tax escalations. A statement from his office, procured by WPXI, indicates the Mayor will "thoughtfully evaluate the decisions made by City Council today, particularly in light of the significant tax increase and numerous modifications to planned spending that were approved." The council stands prepared, with Warwick confident that they possess the votes to override a veto if it comes to that juncture.
