Zappala Demands Independent Oversight for Allegheny's $1.4 Billion Pension Gap

Q: With a $1.4 billion shortfall threatening insolvency, which new tax will residents ultimately face to rescue the county's sinking pension fund?

No specific new tax has been chosen yet. County officials and the Retirement Board have said the pension rescue will require a new dedicated revenue source, but the options still under discussion are a payroll tax, an earned income tax, a sales tax, or a property tax. The reporting makes clear that residents are likely to face some form of broad-based tax increase if the county moves ahead with a long-term pension fix. The county’s retirement system is only about 32.7% funded, carries a roughly $1.4 billion unfunded liability, and could become insolvent by 2043 without major changes. Consultants estimated the county and Airport Authority need roughly $90 million to $100 million more per year for about 20 years to stabilize the fund. What appears least settled is which tax would be used. Treasurer Erica Rocchi Brusselars has said no final revenue source has been selected and that discussions with county leaders and state lawmakers will shape the choice. County Executive Sara Innamorato has also said the 2027 budget will not include a property tax increase, even though property tax remains one of the options identified in the pension report. So the best answer is that residents have not yet been told which tax they will pay, only that officials are weighing payroll, earned income, sales, or property tax measures to generate the money needed.

2 articles · Updated · WPXI Pittsburgh · Jul 25

A three-page response to the retirement board’s report urged Allegheny County Council and the state legislature to install independent oversight while officials weigh new revenue, a new pension system and a reworked board.
Zappala said board members’ political ambitions are driving the problem, framing the county’s $1.4 billion unfunded liability as a long-running governance failure he had already challenged in a 2024 lawsuit.
Sara Innamorato pushed back, saying the board has released a preliminary plan to shore up the fund and protect retirements, while accusing the district attorney of offering no holistic fix despite decades in office.
The seven-member board includes the county executive, controller and treasurer, leaving the fight over who should control the fund especially sensitive for workers nearing retirement who say they depend on its stability.