Allegheny County Council OKs budget with no tax hike

No layoffs are contained in the $3B spending plan.

By JULIA BURDELSKI
TribLive

Allegheny County Council on Tuesday unanimously approved a $3 billion budget for next year that does not raise taxes or lay off workers.

The budget is balanced — neither dipping into the county’s reserve fund, which will have about $84 million at the end of this year, nor growing it through a surplus.

Allegheny County Executive Sara Innamorato proposed a 2026 spending plan with a 1.5% increase in operating expenses and a 3% pay bump for county workers.

“I appreciate council balancing the need for fiscal restraint with the need to provide resources for our families and neighbors across Allegheny County,” Innamorato said in a written statement Tuesday.

The budget, she said, prioritized finding cost-saving measures and maintaining quality services without a tax hike.

Council members did not make drastic changes to the budget Innamorato sent them in October.

Amendments approved by council increased the budget for a rental assistance program and raised the cost of some fees, like those at the county golf course and skating rinks.

Councilman Jack Betkowski, D-Ross, criticized the introduction of eleventh-hour amendments, which required council to waive a rule that legislation be available 48 hours before a meeting.

“I really don’t like this last-minute stuff,” he said, voting against proposed tweaks but ultimately supporting the budget.

Councilman Dan Grzybek, D-Bethel Park, defended an amendment that increased fees for recreational services.

Without the increases, Grzybek said, the county might have to raid its rainyday fund and taxpayers would effectively be subsidizing the cost of people using amenities like South Park’s golf course.

“The budget is tight, but we’re committed to living within our means,” County Manager John Fournier told reporters when the spending plan was unveiled.

He said officials never seriously considered another tax hike for 2026 after county residents this year saw their taxes jump by 36%. That was the county’s first millage increase in more than a decade.

Officials have tried to tamp down spending, but they said three factors spurred the increase in operating costs: inflation, tariffs and an increasing jail population.

To curb costs, the county cut 35 vacant positions, plus about 650 jobs that were unfunded and existed only on paper. The trims saved about $1.9 million without laying anyone off, according to Fournier.

Officials cut another roughly $15 million from the operating budget by reducing staffing ratios at the Kane Community Living Centers, removing ineligible members from the county’s health care plan and centralizing information technology systems.

The budget funds several new initiatives, including an Office of Worker Protections, which aims to expand workers’ rights. Innamorato also plans to launch an Office of Management and Budget and a Safety Office in the upcoming year.

The new offices will primarily be staffed by existing workers whose positions are being moved.

The budget includes money for additional jobs in the public defender’s office, cybersecurity enhancements for the district attorney’s office and investments in housing, roads and bridges.

The capital budget allocates $18 million in 2026 and 2027 to expand Shuman Juvenile Detention Center’s capacity to 60 beds from 12.

Innamorato’s plan calls for a $66 million bond issue next year, plus one for $78 million in 2027.

Decreasing real estate values have put the county in a tight financial spot. The county’s tax valuation dropped by about 0.6% this year and is likely to stay steady or decline slightly next year, according to Tim Cox, the county’s budget director.

Decreasing commercial property values — particularly in Downtown Pittsburgh — have hindered how much the county can collect in property taxes each year.

It’s a trend that has played out nationwide since the COVID-19 pandemic, which spurred a widespread shift to remote work, leaving offices empty and less valuable.

But officials are anticipating a bright spot in the budget next year, as the 2026 NFL Draft is expected to generate about $4.5 million to $5 million in drink, hotel and sales tax revenue for the county.