In what marks a significant shift in fiscal policy for Pittsburgh, Councilwoman Barb Warwick is advocating for a 30% hike in property taxes to address a looming $30 million budget shortfall. The proposed increase, which would be the city's first in over a decade, sparked debate among city officials and residents alike on the necessity and impact of such a move.
According to CBS News Pittsburgh, Warwick stressed that although the proposal is "wildly unpopular," it is essential to ensure the city's financial stability. "Nobody wants to do this," Warwick said, outlining that the responsibilities of the city council include being "the fiscal stewards of the city." The tax increase would translate to approximately an additional $20 per month for a property assessed at $100,000. Council members have challenged Mayor Ed Gainey's no-tax increase budget, arguing it overlooks escalating expenses ranging from city personnel overtime, to utility costs, to the deteriorating state of municipal vehicles.
Meanwhile, Councilman Bobby Wilson aired his disapproval, advising austerity within the government before passing the burden onto homeowners and working families. "We should make all the necessary cuts in city government before we even look to see what taxes should be increased," Wilson said, in a statement obtained by CBS News Pittsburgh. The finance committee responded to the outcry with an alternative measure: a uniform 5% budget cut across all city departments and freezing funds allocated to the Stop the Violence Trust.
In a follow-up on the issue, WTAE reported that Warwick's proposed legislation could generate $41 million in revenue, exceeding the deficit and providing funds for other budgetary demands, such as upgrading emergency vehicles. Further intensifying the discourse, City Controller Rachael Heisler indicated that her office warned of the fiscal predicament over two years ago, saying, "without significant budgetary changes, the city will likely be operating at a net deficit by 2025, and that the reserve fund could be depleted by 2028 if not sooner."
The office of Mayor Gainey, despite opposing the tax hike, expressed willingness to collaborate with the Council. "We’re committed to working collaboratively with Council to ensure the final budget reflects our community’s priorities," the Mayor said, according to a statement shared by WTAE. Mayor-elect Corey O'Connor also chimed in, indicating a commitment to maintaining essential services while evaluating all financial options available to the city.
The legislative proposal from Warwick is due to be put forth today at the council meeting. With a public hearing scheduled just before Christmas, the final decision will have to be made before the month’s end to set the city's financial course for the upcoming year.
