Warning of dire financial situation, Pittsburgh Mayor Peduto pens letter to President Trump

PITTSBURGH — Pittsburgh Mayor Bill Peduto said the city stands to lose $120 million this year.

The planning for our new future includes coming to terms with dark days ahead for the city’s budget.

The bones of a strong budget remain from the hard lessons we learned through Act 47, but the financial picture is still bleak; There will be a shortfall of tens of millions of dollars this year, even taking into account the $85 million in reserves the city has built up since 2014, which will then have heavy repercussions onto our next five years of budgets.

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Large cuts to spending will likely be necessary. Again, it will take the strength and perseverance of residents, workers and the greater Pittsburgh community to help the city.

Peduto joined hundreds of mayors across the country sending a letter directly to the President Donald Trump, urging the federal government for $250 billion in emergency assistance.

“…The scale of this crisis has simply been overwhelming—it is only a matter of time before we will face cash flow issues affecting our ability to pay first responders and essential workers.” Peduto wrote in the letter. “We need relief and we need it now.”

The mayor’s chief of staff, Dan Gilman, echoed those concerns.

“It’s critical that the federal government play a role here and provide the same direct assistance to city governments that you see being provided rightfully so to airlines and airports and public TRANSIT agencies,” said Gilman.

The mayor’s letter to the president outlines the loss of revenue, estimated at $120 million this year, with little or no money coming in from the parking revenue, amusement tax, facility usage fees and deed transfer tax, while continue to provide essential city services, like garbage collection and public safety.

“The federal government needs to put their action where their mouth is and not just talk about front line workers but actually help them,” Gilman said.

During an address to the city last week, the mayor, even with $85 million in reserves, painted a bleak financial picture.

The city hasn’t laid off any employees, and doesn’t plan to, but Gilman said they are looking at ways to cut costs.

“We are analyzing every vacant position, every program cost, every capital project department by department and line by line, through the budget we are already taking steps,” Gilman said.

The mayor closed the letter by saying that extraordinary times demand collaboration and bold action from the government to support the people they serve. Gilman said he and the mayor are optimistic they will eventually get some help.

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