Allegheny County Council slashes Innamorato's budget proposal

Allegheny County Council members presented their plan Tuesday to make over $70 million in cuts to Allegheny County Executive Sara Innamorato’s budget proposal as a means to lower the proposed property tax increase rate that could hit residents next year.

An amendment introduced by Allegheny County Councilman John Palmiere, D-Baldwin, proposed a property tax increase to cover the county’s large budget deficit, but less than Innamorato’s proposal.

The proposal was presented during a contentious meeting Tuesday night at the Allegheny County Courthouse, where some members said they were given no advance warning of the proposal and were given just minutes to read it before voting on it.

Council members voted 4-3 to advance through committee a tax increase of 1.35 mills, which would be a 28.5% increase compared to the current millage rate. They also advanced a 2025 budget proposal that is at least $70 million less than Innamorato’s budget plan.

Innamorato has proposed a $3.1 billion budget that includes a 2.2-mill property tax increase, or 46.5% increase, to cover a budget shortfall of more than $100 million that began under the prior administration.

Supporters: Smaller hike would be supported

After the meeting, a group of council members defended the proposal including Palmiere, Council President Pat Catena, D-Carnegie, Suzanne Filiaggi, R-Wexford, and Sam DeMarco, R-North Fayette.

Filiaggi said her office has received a deluge of calls asking for there not to be an increase.

“It doesn’t solve everything,” Filiaggi said of the proposal. “The job of the council is to look out for our taxpayers.”

She said it does not lead to any county employee layoffs, and that it still increases the next year’s total budget compared to this year, but less than Innamorato proposed.

County Manager John Fournier sent a memo to council members earlier this month that a 1-mill increase would be “catastrophic” for county services and workers, and would lead to about 1,000 job losses, including 400 layoffs, to be made before this fiscal year.

Catena said that many of his constituents have criticized a tax increase, but understand its necessity given that there hasn’t been a property tax increase in over a decade in Allegheny County.

“They would support a more modest increase,” Catena said. “This is that.”

The largest section of cuts proposed by council came from a $28 million decrease in the allotment to the county’s rainy day fund. Instead of the $33 million proposed by Innamorato, council is proposing $5 million.

DeMarco said that refilling the rainy day fund more incrementally each year is more prudent than refilling it quickly.

Another large area of funding for the Department of Human Services. Council is proposing cutting $21 million in spending to the department. The county would spend $4 million less than under Innamorato’s proposal, but would also fail to qualify for a $17 million match in state funds.

Detractors: Decision rushed, difference minimal

Councilman Dan Grzybek, D-Bethel Park, admonished the process of introducing the budget amendment as being too rushed. Grzybek criticized the Department of Human Services cuts, saying it doesn’t make sense to miss out on that much state funding.

“So we are choosing to not spend $4 million and losing out on $21 million?” he said.

Councilman Jack Betowski, D-Ross, also lamented the proposal and the process in which it was introduced.

Council waived a rule that gives members at least 48 hours to read legislation over Betowski and others’ objections. He called it “irresponsible.”

Betowski also questioned if the cuts were worth it, since council will likely be passing a tax increase anyway.

Comparing the tax hikes

Innamorato’s proposed rate hike from 4.73 mills to 6.93 mills, coupled with a boost in the homestead exemption, would increase annual property taxes by roughly $182 — or about $15 more a month — on a house assessed at the county’s median value of $110,400.

Council’s proposed rate hike is from 4.73 mills up to 6.08, and leaves the county’s homestead exemption as it is. That would mean an increase of $135 — or about $11.25 more a month — on a house assessed at the county’s median value of $110,400.

Betowski questioned if a difference of about $3 to $4 a month is worth it and wondered if the county will have to come and raise taxes again next year to continue to fill the budget deficit.

Councilman Nick Futules, D-Oakmont, voted to advance the proposal out of committee. He said it was an open question if taxes need to be raised again next year, but said there were not the 10 votes required to pass Innamorato’s proposal. He believes council’s plan has a better chance.

It’s not clear who exactly supports the council’s proposal and if there are 10 out of council’s 15 members to back it.

Catena said he believes he has 10 votes to pass council’s plan, but left the door open to possible changes before next week if something can be reached with Innamorato.

Innamorato’s take

Innamorato has defended her proposal as fiscally responsible and necessary to avoid large cuts to senior care, county parks, and homeless services. She has also said the county cannot cut its way into prosperity, and must invest in economic prosperity to help grow the tax base.

Her spokeswoman, Abigail Gardner, released this statement Tuesday evening: “The County Executive put forward an honest budget in October, one that was only a 3% increase in spending over 2024 but was serious in addressing the significant, structural financial challenges the County faces. We will now review the amendments and budget as passed by committee tonight. While we believe the Council-proposed 1.35-mill increase is going to fall short of what the County ultimately needs, we will work hard to negotiate with Council leadership in hopes of finding agreement on a budget that will deliver core services, critical programs, and avoid layoffs.”

Council will vote on the proposal at the Dec. 3 meeting at the Allegheny County Courthouse.