The city controller presented Pittsburgh’s 2024 Annual Comprehensive Financial Report on May 1, summarizing results from 2024 while expressing concerns over the financial future of the city.
Looking at the general fund – which encompasses the city’s core government functions – revenues totaled $703.6 million while expenditures totaled $699.7 million, resulting in a surplus of roughly $4 million.
Total revenues were $10.6 million lower than the budgeted amount but $15 million (2.3 percent) higher than 2023 actuals. A Tribune-Review article labeled tax revenues as a “mixed bag,” highlighting that the amusement and parking taxes were closer to pre-pandemic levels – roughly $79.5 million combined – while a Post-Gazette article noted the deed transfer and real-estate taxes combined were almost $20 million below expectations.
Total expenditures were $20.8 million lower than the budgeted amount, but $44.1 million (6.7 percent) higher than 2023 actuals.
The city’s unassigned general fund balance – essentially its “rainy day” fund – rose to roughly $200 million.
Despite running a general fund surplus and boasting a sizable fund balance, the controller maintained reservations about the city’s overall finances. Declining commercial value Downtown and the legality of the facilities usage fee (“jock tax”) continue to create uncertainty for future revenues. 2024 marked the year that all American Rescue Plan (ARP) funds, which buoyed the general fund for the last few years, had to be allocated.
In 2024, ARP funds accounted for approximately $46.48 million in general fund revenues. Without the continuation of ARP funds, expenditures will need to be reined in – or revenues will need to grow in future years to avoid a rapid decline in the fund balance to help plug holes in the budget.
The controller has already touched on concerns about overtime, or “premium pay,” spending in Q1 of 2025, which could end up costing the city millions more than previously budgeted.
Despite these concerns, the controller maintains that the situation is “manageable” and a tax increase is not necessary at this stage. To help turn the city’s fortunes around, the controller recommended adopting policies which attract residents and grow the tax base. The Allegheny Institute recently published an update on previous policy recommendations which address the city’s need to rein in spending, grow the tax base and focus on delivering core services.
