Innamorato’s proposed property tax increase probably dead, Catena says

A proposed property tax increase in Allegheny County likely does not have the votes to pass as currently constructed, county council President Pat Catena said.

Catena, a Democrat from Carnegie, said he opposed Allegheny County Executive Sara Innamorato’s proposal to raise county property taxes by 2.2 mills to cover a multimillion-dollar budget deficit. He said he doesn’t outright oppose a tax increase to cover the budget deficit, but he added that Innamorato’s proposal is too high and should be decreased.

There are five council members, including himself, who have come out publicly against the proposal, Catena said, and he expects more to follow because more council members have expressed reservations about the proposal to him privately.

Council must approve the proposal with a supermajority, meaning 10 of the 15 members must approve. If one more comes out against, it won’t have enough support.

“It’s close to a 50% increase. It is just too much,” Catena said. “It’s too much of a burden on the taxpayers of Alle­gheny County.”

The proposal is a 46.5% increase on the county’s property taxes. It is the first proposed tax increase in Allegheny County since 2011.

Allegheny County’s property tax rate is 4.73 mills. The proposal would raise it to 6.93 mills.

The new rate, coupled with a proposal to increase the homestead exemption, would increase annual property taxes by roughly $182 on a house assessed at the county’s median value of $110,400.

Catena acknowledged the large and growing budget deficit the county is under but said the tax hike isn’t the answer to the problem.

The county has been running budget deficits since 2021. Innamorato said last week the county has been filling those gaps with federal pandemic aid and by drawing from the county’s rainy day fund. For 2024, the budget deficit will be filled by $48 million in federal aid, which must be spent by the end of this year, and $33 million from the county’s rainy day fund.

Declining funds from sales taxes and higher than expected tax refunds have shrunk the county’s revenue streams.

But Catena said austerity measures need to be seriously looked at before proposing such a large tax increase.

Innamorato’s $3.1 billion budget proposes a 3% increase compared with the 2024 budget, which is in line with budget increases for the past few years.

With a tax increase to cover the deficit on the table, Catena said, this is the time to look seriously at budget cuts.

“What steps of austerity are available in order to reduce the deficit?” Catena said. “This needs an all-hands-on-deck approach.”

Innamorato spokeswoman Abigail Gardner said the executive is open to working with council on adjusting the proposal but noted balancing the budget will require tough choices.

“We are very open to working with council to pass a budget that continues to provide critical services for the people of Allegheny County,” Gardner said. “Asking for a tax increase is the last resort, not the first, but there will be no easy path to a balanced budget.”

Catena said he doesn’t have a target millage rate to hit, but he wants to see council take a serious look at where the budget can be cut so any potential tax increase is less dramatic.

“I don’t want to back into anything, but we need to go through the budget with fine-tooth comb,” he said.

Catena said four other council members have joined him in publicly opposing the proposal: Nick Futules, D-Oakmont; Bob Macey, D-West Mifflin; Bob Palmosina, D-Banksville; and Sam DeMarco, R-North Fayette.

DeMarco agreed with Catena that council and Innamorato will need to find austerity measures before he can support any tax increase. He said he would have expected to see hiring freezes or budget freezes for nonessential workers before such a large tax increase was proposed.

“I have not seen anything involved in cutbacks,” he said.

DeMarco said Innamorato’s proposal includes funds for 40% of the county’s 1,000 open positions. He said that could be one area where trimming could occur.

He expects the council to spend a lot of time and detail going over the budget over the next month or so.

“We can likely find some sort of compromise to make sure that the county can afford core services, but we can’t afford any luxuries right now,” DeMarco said.

Catena said the first public hearing on the budget is scheduled for 5 p.m. Thursday, Oct. 17, in the Gold Room of the Allegheny County Courthouse.