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Peduto asks Trump for funding, cites potential $127M deficit for Pittsburgh

Bob Bauder
| Monday, April 20, 2020 11:51 a.m.
Tribune-Review file photo
Pittsburgh Mayor Bill Peduto

Mayor Bill Peduto on Monday asked President Trump for funding to help cities provide essential services during the coronavirus pandemic, saying Pittsburgh is facing a $127 million deficit in 2020 and $239 million in losses over the next five years.

Peduto in a letter urged the president to provide at least $250 billion for local governments struggling with revenue losses because of the pandemic. Peduto last month joined other mayors in calling for a similar measure.

“Despite almost no revenue from vital sources such as parking tax, amusement tax, parking revenue, facility usage fees and deed transfer tax, the City of Pittsburgh continues to incur increased financial costs associated with managing the emergency and public health response, continuing to provide essential services, obtaining critical protective equipment for our front-line workers and working to provide emergency support to vulnerable residents,” the mayor wrote. “We need relief and we need it now.”

Pittsburgh in December adopted a balanced $608 million operating budget for 2020 with $85.8 million on reserve. Peduto said the city estimates revenue will drop by 21% ($127 million) this year and expects to lose 7.5% of revenue ($239 million) from 2020 through 2024.

Dan Gilman, Peduto’s chief of staff, said city officials are looking at ways of cutting expenses in every city department. The city has continued to pay all of its 3,300 employees throughout the crisis.

Gilman said the city can tap reserve funds but is required by ordinance to maintain a minimum yearly fund balance equal to 10% of operating expenditures.

“Not only would it be financially imprudent to zero out reserve funds, but also it’s illegal,” Gilman said. “We absolutely need support from the federal government as does every city in America. We continue to support first responders, public works and building inspectors, who are out there every day working on the front lines, but we don’t have the tax revenue coming in to meet those payroll needs.”

The Trump administration and Democrats on Sunday agreed to a new $450 billion funding package that would help small businesses, expand coronavirus testing and provide funding for hospitals across the country, according to the New York Times. Mayors and government officials from around the country have urged Congress and the president to also include funding for local governments.

Trump has said that he supports funding for municipalities, but the money was not likely to be included in the package under discussion.

In his letter, Peduto said the city would soon face cash flow problems impacting the ability to pay first responders and other critical employees.

“For us to continue to protect my community and save lives, I request that America’s cities be allocated at least $250 billion in dedicated funding in a way that considers the role local governments are taking in responding to the pandemic, regardless of population,” Peduto wrote.


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