tag:blogger.com,1999:blog-7481330.post114447258164961692..comments2023-10-24T11:05:25.288-04:00Comments on Mark Rauterkus & Running Mates ponder current events: Lawsuits add to Pittsburgh's financial woes - PittsburghLIVE.comMark Rauterkushttp://www.blogger.com/profile/17157914569686528007noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-7481330.post-1144472662532015182006-04-08T01:04:00.000-04:002006-04-08T01:04:00.000-04:00Lawsuits add to Pittsburgh's financial woesBy Jere...<I>Lawsuits add to Pittsburgh's financial woes<BR/><BR/>By Jeremy Boren<BR/>TRIBUNE-REVIEW<BR/>Saturday, April 8, 2006<BR/><BR/>Lawsuits have amplified the costs of guiding Pittsburgh out of its financial mess, according to preliminary budget figures from the city's state oversight board.<BR/><BR/>Much of the higher-than-anticipated costs comes from legal fights the board started or was forced into with former Mayor Tom Murphy, the city-county Sports & Exhibition Authority and the city's firefighters union.<BR/><BR/>"I think we were forced to spend more on litigation than we should have had to spend," said Henry Sciortino, executive director of the oversight board, which is officially known as the Intergovernmental Cooperation Authority. Unanticipated litigation costs mounted to $500,000 between February 2004 and December 2005, he said.<BR/><BR/>The oversight board filed lawsuits against the Sports & Exhibition Authority and the firefighters union in 2005. Its lawyers also participated in former City Controller Tom Flaherty's lawsuit against the city and Murphy, whom he took to court for cutting the Controller's Office budget between 2004 and 2005.<BR/><BR/>So far, the oversight board has paid nearly $800,000 to Downtown-based law firm Reed Smith. By June, its legal bill will reach about $900,000, Sciortino said.<BR/><BR/>"Our legal bills now have dropped off dramatically since the O'Connor administration came in," he said. O'Connor has been mayor only since Jan. 3, but authority board members have lauded the new mayor's willingness to cooperate, in contrast with his predecessor.<BR/><BR/>Murphy did not respond to a message left at his home Friday seeking comment.<BR/><BR/>Despite the higher-than-expected legal fees, the oversight board has stayed within its means.<BR/><BR/>Since the Legislature created the oversight board in 2004, the state has set aside $1.75 million for operations through June. The authority has spent $1.39 million as of yesterday and expects to stick to its allotted share of state funding, Sciortino said.<BR/><BR/>"What did the Commonwealth get for their $1.7 million? A lot," said Sciortino, who noted that the $40 million deficit Pittsburgh reported in 2004 has evaporated through oversight board-driven budget cuts "without the Commonwealth writing a check for $40 million."<BR/><BR/>Sciortino, the authority's only full-time employee, is paid an annual salary of $168,000, plus benefits, money which had been earmarked by the authority.<BR/><BR/>The oversight board spent $250,000 on financial studies it commissioned on the city's police and fire bureaus, workers compensation costs and retirement health care pay. About $100,000 was spent on financial audits of the Fire Bureau and the Sports & Exhibition Authority.<BR/><BR/>A final report on the authority's two years of finances could be available by late next week.<BR/><BR/>Meanwhile, the city's other financial overseer, the Act 47 recovery team, has repeatedly delayed release of its operating expenses.<BR/><BR/>In November, Pittsburgh City Council passed a resolution requesting an audit of the Act 47 team's finances.<BR/><BR/>"We sent them a letter and haven't heard anything," said Deputy City Controller Tony Pokora. "It should only take a month, tops."<BR/><BR/>Kevin Ortiz, spokesman for the Department of Community and Economic Development, said a report on the Act 47 recovery team's spending would probably be available "early next week."<BR/><BR/>"Every government entity has an obligation to let the public know what it is doing," said Councilman Doug Shields. "This is a simple dollars-and-cents question that isn't being answered."<BR/><BR/>Jeremy Boren can be reached at jboren@tribweb.com or (412) 765-2312. </I>Anonymousnoreply@blogger.com