Coronavirus Financially Pummeling Pittsburgh

PITTSBURGH, PA - City revenues have plunged by about 25 percent during the coronavirus outbreak, officials said Wednesday. From March through May 8, city revenues totaled $94.4 million compared to $126.3 million for the same period last year - a difference of $31.9 million.

Expenses from March through May 8 this year were $101.5 million compared to $109.2 million last year - a difference in spending of $7.7 million and a decrease of seven percent.

“The City is holding its own through frugal spending but the gapsbetween our revenues and expenditures are likely to widen further," Mayor Bill Peduto said in a release. "With the help of cCity Council and the leaders of all city departments, we willhave to keep a hard watch on spending until the financial impacts of the COVID-19 pandemic become clearer.”

Last month, the city estimated it will suffer a 21 percent cut in projected revenues in 2020, going from $608 million down to $481 million, for a total loss of $127 million. Over a five-year period from 2020-2024 the City expects to lose a total of $239 million, which amounts to a 7.5% cut.

The tax revenues that are most impacted by economic hardship triggered by the pandemic are payroll, parking, earned income and property taxes: these four taxes alone could see $97 million in losses just this year.

The city has instituted a hiring freeze acrossall departments expected to save an estimated $3 million in salary this year, and is drafting plans for 10 percent cuts in non-personnel spending
across all departments.