Pittsburgh's new 2026 budget is approved, with nearly $30 million in realigned expenses

Pittsburgh City Council passed a highly amended 2026 budget Monday morning that increased expenses on paper by nearly $30 million, which city leaders say would have been spent regardless of whether it showed up on the budget.

Mayor Corey O'Connor's administration announced their intent to adjust the budget last month, saying the original financial forecast put together by former Mayor Ed Gainey's administration significantly under-budgeted spending on retiree health care, overtime payments and more that made the city's outlook "worse than we thought."

The amendments approved Monday better align those projections with what the city will actually spend, officials said.

The original 2026 budget, amended and approved by council and put into law without Mr. Gainey's signature at the end of his term, had some line items zeroed out.

Mr. O'Connor's amended budget accounts for about $28 million in realigned expenses that had not appeared on the original budget, but Councilwoman Erika Strassburger said Monday that the newly approved spending plan puts the city on a better track nonetheless.

"I do feel as if we're taking the most responsible path forward," she said. But, in that, council had to make difficult decisions in deciding where cuts were made.

Changes and pushback

Among the changes, the Food Justice Fund, which helps support food access in Pittsburgh, saw a reduction of half its money for this year, down to $250,000 from $500,000

"This was a bitter and difficult vote," said Councilwoman Deb Gross, who championed the creation of the fund years ago using federal COVID-19 relief dollars that are expiring. "I look forward to working with the current administration on ways to make sure we are continuing investment in the food system."

There was little pushback to Mr. O'Connor's proposed changes overall, expect in one area.

Because of donations from UPMC and the PNC Foundation for new ambulances and snow removal equipment, the mayor's office shifted some funding from EMS vehicles to various other line items.

Councilwoman Barb Warwick raised concerns that those funds, even if not needed for EMS vehicles, should go to replacing vehicles in other departments.

"Fleet has been deprioritized every year, and it has been deprioritized again here," she said during previous budget discussions.

Administration officials said they felt that because EMS was covered by the donations, they should shift the funds to other "critical needs."

For years, the state of the city's fleet has been a concern, with reports of ambulances transporting patients breaking down. Additionally, nearly one-third of the city's snow plows were out of service during a massive snowstorm in January.

Ms. Warwick had introduced her own amendments, suggesting about $2 million meant for EMS vehicles be reallocated for equipment for the Bureau of Fire or Environmental Services, which has been grappling with garbage trucks breaking down.

Ultimately, Ms. Warwick's amendments were voted down.

Missing pieces

Pittsburgh ended 2025 in a nearly $9 million deficit, starting the clock on the city potentially requiring financial oversight from the state.

If the city ends in the red for three consecutive years, the state could swoop in to assist the city under the Department of Community & Economic Development's Act 47.

Mr. O'Connor's team estimated that about $30 million-$40 million in spending over the next five years was not accounted for in the original budget.

The new budget, although putting the city on more "solid footing," still does not have wiggle room for unexpected expenses, such as damage from natural disasters or a lawsuit with a large payout, Ms. Strassburger said.

The city also will have to pull about $6.5 million from its rainy day fund to keep the budget balanced and cover some of the additional expenses in the amendments.

City Controller Rachael Heisler has warned against using that fund as a "revenue substitute."

"While it's preferable to recognize its use up front, this cannot become a regular practice," Ms. Heisler said in a statement last month. "The fund balance is our budgetary lifeline. I urge Council and the Mayor's Office to develop a detailed plan to reduce our dependence on our fund balance in the years ahead."

Ms. Strassburger agreed that dipping into the fund "cannot become a pattern."

"That being said, it's raining," she said.

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This story was originally published April 20, 2026 at 3:51 PM.