Pittsburgh’s finances are tightening, new numbers show the city spent tens of millions more than it brought in last year.
City Controller Rachael Heisler said the city is now feeling the loss of federal pandemic aid, finishing 2025 with a nearly $45 million deficit.
“Without the American Rescue Plan, we would’ve had a deficit in 2023 and 2024 and now, here we are in 2025,” said Heisler. “The American Rescue Plan dollars account for almost exactly the net loss in 2025.”
Heisler says revenues dropped while expenses climbed, and the city dipped into its rainy-day fund, which ended the year at about $166 million.
Heisler pointed to rising costs and relatively flat revenue growth, even with gains in several tax categories, including increases in deed transfer, earned income, payroll preparation, and parking taxes.
Heisler warns spending hasn’t adjusted to the new reality, and says moving forward, the city needs stricter budgeting and new, long-term revenue sources.
See the full report HERE.
