O’Connor Budget Means Big Changes for Housing, Anti-Violence Funding

Mayor Corey O’Connor painted a dire picture of Pittsburgh’s financial future on Wednesday, one in which the city would completely run out of money by 2032 if it stays on the current course.

The mayor submitted a 2027 budget proposal to City Council that would draw $26 million from the city’s reserve fund to cover costs next year, even after cutting spending 2% from this year’s level. He proposes cutting trust funds related to violence prevention and affordable housing, though he said in a press release the underlying programs will go on.

The proposal does not include a tax increase, a year after council approved a 20% hike in the property levy for 2026.

He warned that without his proposed changes, the city would face a future without rec centers, pools or parks, with more flooding, litter and blight, and worse public safety services.

“The alternative to my budget would be massive city staff layoffs, which we know from history affects how we deliver fundamental services, and, in turn, is felt most significantly in our most disadvantaged communities.”

The mayor’s plan for 2027 calls for pulling $26 million out of the reserve fund to meet expenses, while cutting costs in three primary ways:

• Cutting off funding to the Stop The Violence Trust Fund.
• Cutting off funding to the Housing Opportunity Fund Trust Fund.
• Decreasing the city’s pension contributions.

The city has historically transferred $10 million to each of the two trust funds annually. The budget proposal also decreases pension contributions from $112 million to $105 million. O’Connor referred to the trust funds as an accounting “gimmick” used by past mayors to avoid counting the expenses against the city’s revenues when balancing the budget. He said the funds’ present cash reserves “will allow us to continue to invest in the critical work paid through these trust funds without the transfers.”

The 179-page operating budget document shows the mayor is adding 63 jobs to the Department of Public Safety that previously were part of the Stop The Violence fund. The budget does not make it immediately clear how the Housing Opportunity Fund programs would continue.

The five-year plan released Wednesday predicts an annual deficit of more than $25 million from 2028 to 2031, plunging the fund balance below the legally-required threshold of 10% of operating expenses — and emptying the fund completely before 2031 ends.

O’Connor is also proposing to cut the amount of money the city spends out of pocket on infrastructure and capital projects next year. While the total capital budget would increase next year, from $112 million to $145 million, the amount that comes from the city’s general fund would decrease from $21 million to $9 million. The rest comes from bond borrowing and federal and state sources.

The release of a preliminary operating budget starts a process which continues with a formal introduction in early November; a late autumn of City Council meetings, public hearings and amendments; and ultimately votes by year’s end.

This excerpt of an article that first appeared on Pittsburgh’s PublicSource on September 30, 2026, is republished in the supplied newsletter under Creative Commons. Read the full article at publicsource.org.