The University of Pittsburgh will contribute $5 million to city government over the next five years, the school announced Monday. It’s the second major Pittsburgh nonprofit to commit money to the city since Mayor Corey O’Connor took office in January, after UPMC gifted $10 million for ambulances. The city also received a $2 million gift from PNC Bank for snow removal vehicles.
“Mayor O’Connor has already expressed appreciation for the vital role the University plays in Pittsburgh, and from the first day of his administration, has sought opportunities to partner with Pitt for the benefit of the city,” Pitt Chancellor Joan Gabel said in a press release.
The money is earmarked for three areas central to O’Connor’s agenda: parks, business corridor development and public safety. It’s the latest chapter in Pittsburgh leaders’ longtime quest to secure more money from local nonprofits, the five largest of which are exempt from taxes on property assessed at $4.3 billion, according to a 2022 report from the city and county controllers.
O’Connor thanked Pitt and phrased the contribution as a “generous gift,” rather than connecting it to the university’s tax-exempt status. He used similar rhetoric after UPMC announced its gift in January.
The abundance of university- and hospital-owned property in Pittsburgh, while seen as an employment driver, squeezes the city’s budget.
The “big five” nonprofits (UPMC, Pitt, Carnegie Mellon University, Highmark/AHN and Duquesne University), if they weren’t exempt, would owe around $34 million in property taxes annually, according to the controllers’ report. That figure is greater than the budget hole City Council filled last year by raising property taxes and greater than the additional budget hole O’Connor announced this month.
“We absolutely need contributions from nonprofits,” said City Council Finance Chair Erika Strassburger after O’Connor briefed reporters on the city’s financial predicament.
UPMC’s ambulance gift met broad approval from public officials, but some community organizers criticized the deal for falling short of what the group should pay the city.
“Pittsburgh homeowners just agreed to pay $28 million a year in increased property tax for perpetuity while UPMC is agreeing to make a one-time contribution of $10 million,” said Pittsburgh United Executive Director Alex Wallach Hanson in January.
The Pitt contribution, at $1 million per year, represents about 10% of what the university would pay if its property holdings were taxable. Many agreements reached between other cities and local institutions, known as payment-in-lieu-of-tax (PILOT) agreements, are for 25-50% of tax liability.
Public safety investments will be “directed toward areas the [O’Connor] administration determines will make the most meaningful difference,” according to the release. The announcement did not include detail about how the funds would be distributed among the three priorities or which parks or business corridors would see investments.
Charlie Wolfson is the local government reporter for Pittsburgh’s Public Source. He can be reached at charlie@publicsource.org.




