Pittsburgh City Council approves $800M budgets for next year

Pittsburgh City Council on Monday unanimously approved the city’s 2023 operating and capital budgets, as well as an updated American Rescue Plan Act spending plan.

The city’s budgets have been tweaked several times since Mayor Ed Gainey introduced them last month, with the spending plan for American Rescue Plan Act dollars changing repeatedly. The budgets total about $804 million — $657 million for the operating budget and$147 million for the capital budget.

Ultimately, the budget council approved Monday included funding for many of the initiatives Gainey had highlighted when he unveiled his first budget proposal. They included funding for a new bridge asset management program, money for two police recruit classes and a bigger budget for the Department of Public Works.

The budget includes no tax increase.

Council last week amended the budget to provide the city’s nonunion workers with a 3% pay raise next year and to give council members a 6% pay increase, which is in line with the city’s home rule charter.

Other changes made last week nixed several proposed new positions, gave the Pittsburgh Parks Conservancy $800,000 from the parks tax trust fund for a project at the Allegheny Commons North Promenade and reduced the number of crossing guards budgeted for next year.

After significant debate, council members reached an agreement on an American Rescue Plan Act spending plan that had been tweaked repeatedly throughout the budget process. They unanimously voted Monday to authorize a plan that will give the Land Bank $7 million in ARPA dollars, while providing $3 million in the federal relief funding for a food justice fund, $3 million for a scaled-back LED streetlight project and $1 million for a medical debt relief program that was introduced to council last week.

This comes despite concerns from some council members about providing the Land Bank with less money than was initially proposed. In the earliest iteration of the budget, the Land Bank was slated to receive $10 million in ARPA funding, though Gainey later proposed taking $3 million of that to launch the food justice fund.

The Land Bank has already approved a $10 million ARPA spending plan.

City Councilman R. Daniel Lavelle, who also sits on the Land Bank board, said they will likely amend the Land Bank’s spending plan at their next meeting in January to reflect their lower ARPA allocation. The board has not discussed what changes they may need to make to their spending plan, he said.

Related:

• Gainey touts investments in infrastructure, public safety in Pittsburgh budget

• Pittsburgh City Council makes additional budgetary changes ahead of Monday's final vote

• Pittsburgh budget process begins with overview of city's financial position

Council President Theresa Kail-Smith last week described the budget negotiations as “pitting one need against another” for funding, a process she described as “terrible.”

Kail-Smith on Monday introduced legislation that would require the newly-created food justice fund have a spending plan before money is released. She had said last week that she wanted to ensure there was accountability and planning for how the cash was used.

Legislation governing that process could be approved as early as next week.

City Council also overrode a proposal the mayor had set forth in his budget that would have moved the city’s cable bureau, print shop and other communications staff under his office’s purview. Council members said they would not support consolidating the city’s communications in the Mayor’s Office and changed the budget to keep those services in the city’s Department of Innovation and Performance, where they can serve the mayor, council and other city departments.

City Council on Monday also unanimously voted for a change in the way money in the Stop the Violence trust fund can be allocated. Gainey proposed the change in a package of budget-related legislation.

Under rules approved last October, no more than 20% of the money held in the trust fund can be spent on internal operations, including the Office of Community Health and Safety. The remaining 80% must be given to outside community organizations.

The legislation council approved Monday would allow the city to use up to 40% of that funding on internal operations, meaning only 60% would have to go to outside organizations.

The budget package will now return to Gainey for his approval. The mayor confirmed he will sign the budget measures.

In a statement, Gainey thanked council members for “helping to finalize a budget that focuses on restoring core city services to the people of Pittsburgh.”

“This budget is a reflection of our value as a city, one where we continue the work of building safe neighborhoods, welcoming communities, and that provides more opportunities for everyone to thrive,” Gainey said.