No Tax Hike For Pittsburgh Despite Coronavirus Revenue Losses

PITTSBURGH, PA — Despite the coronavirus outbreak that has prompted deep revenue reductions in Pittsburgh, Mayor Bill Peduto on Monday unveiled a proposed 2021 budget that will not hike taxes.

The $564 million operating budget also works to avoid layoffs and furloughs of city personnel, Peduto said. However, the coronavirus outbreak has forced the city to spend nearly all of the $120 fund balance accumulated over the past seven years.

“We made tough decisions to stop public events, close pools, senior centers and rec centers, but still watched as our coworkers and neighbors lost their livelihoods and too often their lives,” Peduto said in his budget speech. “Our tax revenues cratered, and there is still no clear path forward to replace them.

"Despite all of this, we kept our resolve during one of the most difficult years in American history. I’m here today to tell you that with your help and that of Pittsburgh’s residents, we’re going to have to do it all over again in 2021, but it is my hope we will emerge from next year even stronger."

The Office of Management and Budget estimates the City will have a $55 million operating deficit at the end of this year. Pittsburgh is required by law to have a balanced budget, so should the city not receive federal aid from Washington the proposed budget would require making $25.6 million in personnel cuts starting July 1, which is approximately the jobs of 634 employees.

Other spending cuts and the depletion of most of the city’s reserves would be needed to further bridge the budget gap.

Next year, thecity will invest a total of $125 million into capital projects including funding for:

• Park investments at Deer Pit, Bud Hammer, Enright, Arsenal, Emerald View, Sheraden, and Kennard.
• Strip District Rail Banking and the Allegheny Green Boulevar.d
• Funding for Warrington, Jefferson, and Robert E Williams Rec Centers, as well as the Brighton Heights Senior Center.
• A new spray park in Chartiers City.
• Continued record funding for landslide repairs including El Paso Street, Riverview Park and Parkwood Road.
• Funding for EMS Diesel Exhaust Systems, Fire Station 19, and Stevens School Improvements.
• $4 million for phase one of the transition of all our street lights to LEDs

The draft budgets introduced today must be finally approved by the end of the year. Council is set to begin budget hearings with city departments and agencies starting Nov. 18, begin its preliminary votes December 14 and take a final vote December 21.

All hearings are votes are being held virtually.

See Peduto's budget speech here.