Pittsburgh Mayor Corey O'Connor has warned that the city of Pittsburgh is facing a budget deficit of up to $40 million, following a 20% increase in property taxes in December. This comes after the city raised property taxes by 20% in December, and the mayor believes he can eliminate the deficit without raising taxes or cutting services. He plans to eliminate vacant positions, solicit donations from nonprofits, and review all spending to avoid a tax hike. The deficit was largely due to $20 million in unbudgeted overtime last year, and could reach 40 million this year. The 2026 budget underfunded employee health care by $9 million and fleet repairs by $1 million to $2 million, and there was no funding for emergencies like a major snowstorm. The mayor's plan is to reduce the deficit by eliminating vacant positions and soliciting donations from non-profit organizations.