Innamorato’s $3B Allegheny County budget plan spares layoffs, hikes no taxes

County officials estimate that eliminating 150 vacant positions next year would save $9 million.

By MEGAN TROTTER
TribLive

Allegheny County Executive Sara Innamorato proposed a $3 billion 2027 budget Tuesday night that would avoid a tax increase and employee layoffs while eliminating 150 vacant positions as the county grapples with rising costs and cuts in state and federal funding.

The operating budget is $1.25 billion, the capital budget is $160 million and special account and grant money is $1.7 billion. While the county’s operating budget would grow 4.7% overall, county officials said most departments would receive less funding than in 2026, as much of the increase goes toward one-time and other costs outside their regular budgets.

“State and federal cuts to important human services programs will take a toll on our budget next year. And while we have worked hard to find significant cost savings everywhere we can without reducing services, inflation and other cost drivers are still applying upward pressure on our expenditures,” Innamorato said.

Much of the operating budget’s growth is driven by a one-time $10 million debt payment amassed in 2010 under former County Executive Dan Onorato’s administration, as well as $21 million in spending tied to drawing down state funding.

Without those expenses, county officials said, operating spending would rise about 2%.

Still, spending would increase in two of the county’s largest operations: the Department of Human Services and the Allegheny County Jail.

The 2027 recommended budget increases DHS funding by $10.2 million, or 3.48%, to $303.1 million, while the Allegheny County Jail budget increases by $9.6 million, or 7.82%, to $132.4 million compared with the 2026 adopted budget.

In June, Allegheny County’s acting Controller Amy Weise Clements released a report stating the Department of Human Services and the Allegheny County Jail have accounted for more than $100 million in spending increases since 2019. Weise said the two departments collectively need to trim $30 million in spending by 2027.

Both face additional cost pressures next year, officials said federal funding cuts will cost millions of dollars in mental health, behavioral health and addiction support, while DHS is also facing $5 million in state cuts to senior and aging adult programs.

Other cost drivers include an additional $5 million for juvenile residential placements and $1 million on pharmaceutical costs at the Kane facilities and Allegheny County Jail.

The county estimates that eliminating 150 vacant positions next year would save $9 million. This is a significant increase from the 35 vacant positions eliminated in the 2026 budget, which officials said saved $2 million.

The administration is projecting another $30 million- plus in savings over the next four years through measures including reducing its reliance on agency nurses and making changes to employee healthcare. The county also refinanced outstanding debt, which the county’s Budget and Finance Division anticipates will save the county $12 million in 2028.

The county is facing millions of dollars in new or higher costs, including negotiated wage increases for union employees, higher fuel costs and inflation. Officials also pointed to federal tariffs as contributing to higher prices for supplies such as road salt.

The budget includes an additional $3 million to account for public safety overtime.

How funding is divided between the jail and sheriff’s office could change depending on the outcome of negotiations over which agency will be responsible for guarding incarcerated people while they are hospitalized.

The issue stems from Sheriff Kevin Kraus’ office stopping the use of deputies to guard hospitalized people in August, a move that prompted Allegheny County Council members to seek a resolution with the administration and sheriff.

The budget proposal also allocates millions to housing, child care and infrastructure projects.

Housing and eviction prevention initiatives receive $4 million in capital funding and rental assistance receives $7 million in operating and grant funding.

The budget still has to be approved by Allegheny County Council before it can be adopted for next year.