Pittsburgh budget to use casino funds for pensions
PITTSBURGH (AP) —
Pittsburgh Mayor Luke Ravenstahl's proposed budget for 2013 includes no tax increase and uses $10 million in casino revenues to pay for pensions and other legacy costs.
Ravenstahl submitted the budget Monday to the Intergovernmental Cooperation Authority, which is one of two panels overseeing the financially distressed city's expenditures.
City Finance Director Scott Kunka proposed using half the gambling revenue to pay into the city's pension fund and the other half for retiree health care, workers compensation claims, risk management and other so-called "legacy" costs.
The proposed budget includes $459 million in expenditures, about the same as this year's budget.
Kunka said the gambling money might help the city close its gap between pension income and expenditures. The pension fund draws in about $82 million annually, while paying out about $87 million.