Pittsburgh Faces $1.2 Billion Shortfall, Earning a “D” Grade

Pittsburgh’s financial condition showed some improvement in fiscal year 2023, but the city still faced a $1.2 billion shortfall. This equates to a Taxpayer Burden™ of $10,500, earning Pittsburgh a “D” grade and classifying it as a “Sinkhole City” in Truth in Accounting’s latest report.

The city’s financial position benefited from revenues exceeding expenses and a decline in net pension liability following investment losses in 2022. However, Pittsburgh’s pension system remains vulnerable to fluctuating market values and uncertain funding estimates, contributing to its ongoing financial challenges.
Pandemic-related economic shifts further impacted Pittsburgh’s revenue streams. Deed transfer taxes fell $21.1 million short due to lower home sales, and real estate tax collections missed budgeted projections by $10.3 million. These shortfalls highlight the city's economic vulnerabilities and the need for strategic financial management.
Key findings from the report include:

• Pittsburgh had $1 billion available to pay $2.2 billion in bills.
• The city’s financial shortfall amounted to $1.2 billion, leaving each taxpayer with a $10,500 burden.
• Revenue growth helped, but pension liabilities and economic fluctuations remain a challenge.

Pittsburgh will need to balance pension obligations, adapt to revenue fluctuations, and invest in essential services and infrastructure to ensure long-term financial stability.

For those interested in a deeper dive into Pittsburgh’s finances—and how it compares to other major U.S. cities—you can read the full Financial State of the Cities 2025 report here.