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Pittsburgh City Council

A projected $24 million shortfall in 2026 could leave one year before state financial control.

Written by Amy Whipple

Acting Director of the Office of Management and Budget (OMB) Rea Price’s assessment of 2026 thus far — and projections for its remainder — fared only marginally better.

While OMB budgeted for $721 million in revenue, first quarter analysis shows the city potentially ending the year with only $707 million in income. The city is already falling short on income from permits, licenses and interest from investments.

At the same time expenditures are projected to be $10 million over budget. The result, Price said, could be more than a $24 million deficit for 2026. If that happens, then the city would only have one more year to turn things around before falling under state financial control.

One pitfall for this year is $36 million of expenses rolled over from 2025, which included the $7 million remaining on the water bill and $1.4 million in unexpected fleet maintenance costs. “[Rollover] essentially gives the departments the ability to overspend their adopted budget,” she said.

The city also has to balance $4.5 million in overtime and other expenses for the January snowstorm, increased Teamster wages, a potential increase in police salaries (the matter is still in arbitration) and high fuel costs. Price said the city has spent $30 million more in the first quarter of 2026 than in the first quarter of 2025. 

All hope for the year, though, Price said, is not lost. “We tend to be much more conservative at the beginning of the year, because we don’t want people to be too confident,” she said. “We’ll have a better picture in about a month.”

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Topics:
City Budget & Fiscal
Governments:
Pittsburgh City Council

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