As the deadline to pass Allegheny County’s 2025 budget looms, County Executive Sara Innamorato is making a case for her $1.2 billion proposal, defending a proposed tax increase, and touting key initiatives she argues will bolster local economic development.
“We cannot be passive spectators in our economic future. It is time to be proactive in building the economy that we want — an economy that we all deserve,” Innamorato told spectators gathered for a press conference at the Braddock Civic Plaza.
Innamorato’s spending plan calls for a 2.2-mill property tax hike, which would be the first tax increase in more than a decade, and would bring the county millage rate to 6.93 mills. The change would cost the median homeowner an additional $15 each month.
Two-thirds of county council must approve the increase, but some immediately pushed back on the idea of a 46.5% property tax increase, calling the idea “dead on arrival.”
The plan doesn’t represent a major increase in spending; it’s a 3% bump over the proposed 2024 budget and in line with past raises. Innamorato has argued that the increase is the only way to fix a long-running structural deficit slated to leave the county more than $81 million in debt, and to stave off challenging economic headwinds, including stagnant state funding, increased operating costs, and the end of COVID-pandemic-era federal funds that once offset deficits.
On Wednesday, Innamorato sought to broaden the argument by highlighting her proposal’s investments in workforce programming, Main Street revitalization, and affordable housing, She said the only way to stabilize county finances and bring property taxes back down over the long term is to make big investments in the local economy.
Innamorato argued that the budget’s investments would ultimately “grow the pie” and result in reduced blight, properties returned to the tax rolls, and expanded homeownership — all of which would shore up future financial success.
“Where you have high levels of vacancy, you often have higher tax rates and more of a burden falling on those residents that stick through the tough times in a community. So if we don't grow as a region, if we don't create more homeowners … then fewer people are bearing the burden,” she said.
The budget includes $100 million for the county’s Department of Economic Development to be spent on programs including blight removal, first time homebuyer programs, and support for entrepreneurs. Innamorato said the investment is meant to help the county “put our foot on the gas” and rebound after the COVID-19 pandemic, adding that the proposed budget more proactively shapes local economic development that “would pay dividends for years to come.”
Her proposal includes $675,000 in financing and support for small businesses, $2 million to retain and attract technology and manufacturing businesses, and $2 million to increase affordable homeownership, among other things.
“These seed investments, they are catalytic in nature and they can create a continued cycle of private investment that flow into our communities, into our businesses and into necessary programs,” she said.
Former Braddock Borough Council member Tina Doose said the plaza is a centerpiece of county investment in the area. The development helped spur new businesses in the area, which is now surrounded by apartments, restaurants, and other commercial buildings.
“We had an opportunity to establish new businesses along Braddock Avenue,” she said. “And I'm grateful for that. We are building wealth and equity in our community.”
Innamorato noted that other western Pennsylvania counties, like Westmoreland, have also seen recent tax increases after dealing with drop offs in tax bases and revenue and soaring costs.
But County Council members, who must approve the budget, have been reluctant to support Innamorato’s plan. At a committee meeting last week, 10 of 15 council members said they would not vote for a 2.2 mill increase. Instead, they’ve asked county budget officials to identify possible cuts, which County Manager John Fournier warned would be “catastrophic.” Just a 1 mill increase would result in $95 million less in county revenue, he said, leading to $250 million in budget cuts that would require eliminating entire departments critical to daily county operations.
Innamorato echoed those concerns Wednesday, warning that anything less than a 2.2 mill increase could mean “wildly unpopular” cuts, like closing county pools and parks and 1,000 layoffs including police officers, emergency dispatchers, and more.
“We have to be clear eyed about the reality that we're facing,” she said.
“I brought a solution to the table that raises property taxes but invests in things that will help us not only deliver quality services like public safety and infrastructure and quality human service and public health initiatives, but things that will prime us for growth. Because we do need to grow as a region,” she added. “We can't continue to be stagnant. We can't continue to lag behind other metro areas that are in our peer communities.”
Council members have said they’re working on alternative proposals, but have declined to discuss them publicly.
Still, Innamorato said she believes the tax hike will ultimately win council’s support. One council member, Anita Prizio, joined Innamorato at the press conference Wednesday.
“Most of [the] county council members want to put us on strong financial footing, want to be fiscally responsible and are being realistic about what it's going to take to get us there,” Innamorato said.
Innamorato and the council must approve the budget before Dec. 6.
