PITTSBURGH — Pittsburgh City Council President Dan Lavelle suggested a 5% across the board cut to every city department just last week.
But after hearing back from them, he said it’s unrealistic, and there’s likely only one way out of this looming financial crisis.
“The reality is we can’t cut ourselves out of the deficit. We’re going to have to bring in new revenue, which in some form or fashion means some increase in taxes,” said Lavelle, which he said would likely be in the form of a property tax hike.
In an interview on Wednesday afternoon with Chief Investigative Reporter Rick Earle, Lavelle said the tax increase appears more and more likely.
After hearing from all departments about his proposed 5% cuts across the board, he stated that most city departments simply cannot afford any further cuts, which could jeopardize city services.
“It’s unpractical. The reality, to do an additional cut on top of what’s already been done, means we would be depriving citizens of service deliveries,” he said. “And as we saw this past weekend, when we have vehicles that are out and we don’t have the manpower it becomes very problematic,” said Lavelle.
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Lavelle did propose diverting $4 million from the Stop the Violence Trust Fund, which has a surplus, to pay for new vehicles.
That’s on top of the $10 million already budgeted for new vehicles next year.
With ambulances and plow trucks breaking down, Lavelle said replacing the aging fleet is critical.
City officials have said they should be spending $20 million every year on vehicles to upgrade the old fleet.
Lavelle said organizations will still receive all the Stop the Violence funding.
He said he’s just pausing the transfer of $5 million in funds from the general fund for one year.
The other $1 million will go to small business development.
In other moves to narrow the budget gap, council also put the brakes on the $6 million construction of a salt dome and voted 6-3 to terminate a $2 million contract for a comprehensive plan that they had already approved.
That move drew sharp criticism from Mayor Ed Gainey, who called it an “legislative overreach” and said he would not terminate the contract.
Mayor Gainey said council already approved the contract and can’t terminate it.
Some council members said they disagree with that assessment, and they said the contract allows them to terminate the agreement.
As for that proposed 30% property tax increase suggested by Councilmember Barb Warwick, President Lavelle said it’s too much and he’s working to close the gap.
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