Peduto: Without federal aid, Pittsburgh will cut over 630 jobs

Pittsburgh Mayor Bill Peduto introduced a $564 million operating budget for 2021 on Monday that doesn’t include a tax increase. But he said cuts will be required if federal relief for cities impacted by the coronavirus pandemic isn’t approved soon.

“It never should have come to this — and it breaks my heart to say — but if we do not get aid from Washington it will require the city to make $25.6 million in personnel cuts starting July 1, which is approximately 634 city employees,” Peduto said.

The financial situation of the city is the worst it’s been since 2003, when Pittsburgh was on the brink of bankruptcy, Peduto said.

“The financial responsibility we showed together the last seven years by building up the $120 million fund balance we had at the start of the year has helped us avoid pain so far, but now the cupboard is bare,” Peduto said. “Our tax revenues cratered, and there is still no clear path forward to replace them.”

#StateOfPgh pic.twitter.com/Ke0WskH4T6

— Office of the Mayor (@TheNextPGH) November 9, 2020

City officials estimate there will be a $55 million operating deficit at the end of 2020. It could be worse — officials initially projected a $100 million shortfall, but the impacts of the pandemic on some tax revenue hasn’t been as dire as originally thought, according to Kevin Pawlos, director of the city’s Office of Management and Budget.

Although parking, amusement and visiting-athlete tax revenues have taken a hit, other areas like the city’s payroll preparation and earned income tax haven’t, Dan Gilman, Peduto’s chief of staff, said in a virtual press conference after the mayor’s presentation.

But if federal aid isn’t approved, the city will need to make spending cuts in addition to laying off employees, the mayor said.

The projected cuts of 630 of the nearly 4,000 city employees would amount to more than 10% from each city department, Gilman said.

“It is absolutely necessary for Congress to provide cities on the front lines of this pandemic with economic relief,” Peduto said in his address. “In the meantime, we are doing our part to implement cuts across all city departments.”

Non-union employees won’t be receiving cost-of-living raises, vacant positions are being eliminated and a hiring freeze remains in place, Peduto said.

The proposed spending plan also addresses police reform measures that also were at the forefront this year, with regular protests in the city following the May 25 killing of George Floyd in Minneapolis that galvanized the Black Lives Matter movement.

“We are not defunding the police, but are re-funding our communities,” Peduto said.

Council has previously enacted a number of reforms, including one shepherded by Councilman Ricky Burgess that created a Stop the Violence Prevention Fund that will earmark about $5 million toward prevention programs.

About $1.6 milllion also would be budgeted for the Public Safety Department’s Group Violence Intervention Program, an initiative that previously depended upon grants for funding, Gilman said.

The measures would allow the police to focus on crime, Peduto said.

There also won’t be a new class of police recruits in 2021, Gilman said, because the department’s staffing of more than 1,000 officers is adequate.

Peduto also touted investments the city made in 2020 to its parks and recreation centers. The budget proposal calls for $125 million in projects at seven city parks, three recreation centers and one senior center.

It also would fund more landslide repairs including those on El Paso Street, Riverview Park and Parkwood Road, according to the proposal.

The proposal also commits more than $10 million — double the 2020 allocation — to affordable housing programs spearheaded by the Urban Redevelopment Authority.

The city also would spend $17 million to repave 65 miles of streets in 2021, according to the proposal.

Council will begin hearings on the budget next week, starting at 10 a.m. Nov. 19. It intends to vote on a budget Dec. 14 and approve a final budget on Dec. 21.

#StateOfPgh pic.twitter.com/e1hNQfu1DY

— Office of the Mayor (@TheNextPGH) November 9, 2020

To view the 2021 proposed operating budget, click here. To view the 2021 proposed capital budget, click here. For a copy of Peduto’s budget address, click here.