Property Tax revenue collected by Allegheny County declined for the first time in 15 years, accompanied by decreased Sales Tax and Drink Tax proceeds that previously had been rebounding sharply post-pandemic, Allegheny County Controller Corey O’Connor’s Annual Comprehensive Financial Report (ACFR) and Popular Annual Financial Report (PAFR) show.
Property Tax—which makes up over 40 percent of County revenue—fell by $5 million after remaining essentially flat in 2023.
“While the first millage increase in over a decade may prevent immediate service cuts in the coming year, our situation remains unsustainable,” O’Connor wrote in an introduction to the PAFR. “Neither further tax increases nor a County-wide reassessment advocated by some would change the dynamic of rising costs combined with the exhaustion of federal pandemic aid and assessment reductions to large commercial properties.”
Assessment appeals resulting from a Court-ordered change in valuation methodology reduced the overall taxable value of properties in the County by more than $1.2 billion in 2023-24. As many properties eligible for assessment reductions—particularly valuable commercial properties in Downtown Pittsburgh—have now received them, these sharp reductions in taxable value should begin leveling off.
The County spent $45.5 million more than it took in last year, up from $23.1 million in 2023.
Contributing to an overall revenue increase of $22.6 million were State reimbursements for Children, Youth and Family (CYF) services, which grew by $15 million—more than half of this resulting from renovation costs and the reopening of services at Shuman Juvenile Detention Center. Fees for services provided at the Kane Regional Centers, which saw an 8.3 percent average daily occupancy increase, grew by $11 million.
An overall increase in expenditures of $45 million would have been far higher without the use of over $30 million in remaining emergency federal aid funds to meet personnel costs, particularly for overtime and contracted health care services in the Kane Centers and Jail.
Despite their increased occupancy, the Kane Centers ran a $10 million deficit even while using $8 million in federal aid to cover contracted nursing costs. Without use of these funds, this deficit would have exceeded $18 million, nearly as high as during the pandemic years, which saw sharply reduced occupancy.
The Jail, where nearly $24 million in remaining federal aid was used for personnel costs, presents a similar picture. Without the use of these funds, the facility would have shown a $15 million cost increase for 2024.
Over $380 million in emergency federal aid received by the County in 2021-22 is now fully obligated and must be spent by the close of 2026. At the close of 2024, only about $5 million of $102 million in Capital funds remained, while just over $20 million in Grant funds used to fill funding gaps and fund initiatives throughout County government was left to be spent.
After a decade of growth, the General & Debt Service Fund Balances have been reduced by nearly $39 million over the past two years, currently standing just below $80 million. This reduction would be far more significant without the benefit of federal aid. In addition to the $31.8 million being used for personnel costs, $19.5 million in federal funds were transferred to the General Fund in 2024, resulting in the use of more than $51 million in aid.
While economic trends for the County are generally favorable and holding steady, O’Connor cited emerging areas of uncertainty.
“The threat of federal funding cuts to essential Human Services programs such as homelessness prevention raises serious concern, as does the prospect of significant service cuts by Pittsburgh Regional Transit (PRT), our County’s public transportation authority,” he wrote. “Reductions in the Sales and Drink taxes show troubling economic indicators.”
Proceeds from the County’s one-half share of the additional 1 percent Sales tax fell by $2.6 million in 2024, while collections from the 7 percent Drink Tax fell by $2.8 million—a nearly unprecedented decline barring the pandemic years.
The standing of the County’s Pension Fund remains of serious concern. Despite a .5 percent increase of the employer/employee Contribution Rate to 11 percent of wages in 2024 and continued favorable interest rates, total assets grew only slightly and an alarmingly low 31 percent ratio of assets to liabilities remained steady.
“Ultimately, maintaining essential services and supporting our residents and communities will require increased resources generated by economic growth,” O’Connor continued. “We must focus on fostering development, especially in areas which have suffered from disinvestment. New housing can increase affordability and support underinvested business districts. Population growth that alleviates a shortage of working‑age adults can open the door to new industries.
“Convening all levels of government, business, organized labor, education and workforce institutions, the foundation community, and more to facilitate this growth must be an immediate and urgent priority for the County and its partners.”
The Popular Annual Financial Report (PAFR) is an easily understandable presentation of the County’s financial and economic standing. The full report can be viewed here. An online version with interactive charts and graphs can be found here.
The Annual Comprehensive Financial Report (ACFR) is the complete, audited accounting of the County’s funds and component units. This report can be found here.