Preliminary Pittsburgh Public Schools budget won't hike taxes; $32 million deficit projected

Pittsburgh Public Schools doesn’t intend to increase taxes to support its 2021 budget. But the $668.5 million spending plan includes a $32 million deficit that needs to be addressed, Superintendent Anthony Hamlet said in a statement.

“We recognize the need to take steps to increase our revenue to the extent possible, while also reducing expenditures,” Hamlet said. “We will continue to work with the board to review our options and we will continue this work after the budget is passed to address our structural deficit.”

The board will hear public comment on the budget during a virtual hearing at noon Monday. Residents can call 412-529-3868 to register to speak during the hearing, which will be livestreamed here.

The preliminary budget is available here. It represents a $3.7 million increase from the 2020 budget.

Last year the district raised property taxes by 1.15% in a contentious process where the board approved a budget Dec. 19, but failed to approve the tax rate. The hike was approved in a marathon meeting Dec. 27 where a divided board passed a tax hike that was half the amount needed to address a $27.3 million deficit.

In May, district officials warned school board members the financial outlook was bleak and the loss in revenues because of the coronavirus pandemic could mean a loss of between $17 million and $82 million.

Officials didn’t respond to a request to clarify the district’s financial position.

According to preliminary 2021 budget documents, the district projects a $19.1 million deficit this year. If the 2021 budget draft is approved, the district will end 2021 with a deficit of $32 million.

The district has been balancing its books using its fund balance while being able to comply with a self-imposed policy of keeping 5% of its budget in reserve.

That will end in 2021, unless spending is cut or revenue increases, according to financial projections by the district. If changes aren’t made by 2023, the district will have depleted its reserves entirely and will face a $23.3 million deficit.