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City treasurer: Pittsburgh faces $100 million less revenue because of pandemic

Tom Davidson
| Wednesday, September 2, 2020 2:25 p.m.
Courtesy of City of Pittsburgh
Pittsburgh Treasurer and Finance Director Douglas Anderson

The coronavirus pandemic’s toll on Pittsburgh’s finances could mean the city collects $100 million less in revenues than projected, Treasurer Douglas Anderson told council members Wednesday.

This year will be a “weird budget cycle,” Councilman R. Daniel Lavelle said, as council heard from Anderson about how the 2021 city budget will be crafted.

It remains unclear whether there will be any federal relief efforts to help Pittsburgh and other cities facing fiscal woes because of the pandemic, Anderson said.

Mayor Bill Peduto asked council to approve an exemption from having a preliminary budget in place by Sept. 30 because of the pandemic.

Anderson was appointed last month by Peduto as treasurer and finance director to replace Margaret Lanier, who retired. Council approved the appointment last week and Anderson started the job by advising council that he, the mayor and council members need to be in “constant communication” throughout the budget process. Anderson previously served as the city’s deputy controller and chief of staff to Controller Michael Lamb.

In July, Lamb also predicted a grim financial picture for the city because of the pandemic. He projected $60 million in revenue losses in a financial report released in July. But property tax revenue was close to last year’s levels, Lamb said, and there was an increase in earned income tax revenues.

Decreased parking and amusement tax collections are a big reason behind the shortfall, Anderson told council. He said he’s going to be working to see if all money due the city is collected through the end of the year.

To help offset the losses, Peduto enacted a hiring freeze in May.

Anderson plans to have weekly conversations with council members throughout the budget process, which will play out in October to allow for more time to get an accurate picture of the financial situation and/or any federal relief efforts.

“Do not expect to receive federal relief money,” Lavelle said.

Peduto has been vocal about the fiscal crisis facing cities because of the pandemic. In a July press call with other mayors, Peduto said it was critical that cities be given financial help.

“There will be not be a recovery if our cities are left to die,” Peduto said then.

His spokesman, Tim McNulty, said Wednesday the mayor continues to work with the U.S. Conference of Mayors and other organizations to lobby for funding for cities. Peduto will work with other officials and council throughout the budget process, McNulty said.

A 2021 budget will be presented in November.


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