Councilmembers look to state to help with rising costs: "Councilmembers look to state to help with rising costsThe presentation from the budget office was solid. I've got it on tape. I would like to get it on the web or this blog.
A year into its fiscal recovery effort, the city of Pittsburgh has made some substantial cuts, but it is still in a tightening fiscal vice of high debt and rising pension and health insurance costs, City Council members said yesterday.
Council spent its first meeting on a proposed 2006 budget throwing itself on the mercy of the commonwealth and criticizing the state-appointed recovery team created under Act 47 for not dealing with major issues.
'The Act 47 plan stinks,' said Councilman Luke Ravenstahl. 'We're no better off than we were before.'
He said council and Mayor-elect Bob O'Connor should lobby Harrisburg for help."
Thursday, December 01, 2005
My approach = Self Reliance: Theirs = Councilmembers look to state to help with rising costs
I agree Act 47 stinks. I don't agree about what needs to be done to fix the overall problems. To fix Pittsburgh, once and for all, we need to have a new attitude of self-reliance. And, voters, it includes you. Fellow reformers, self-reliance and teamwork requires you too!
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Councilmembers look to state to help with rising costs
Thursday, December 01, 2005
By Rich Lord, Pittsburgh Post-Gazette
A year into its fiscal recovery effort, the city of Pittsburgh has made some substantial cuts, but it is still in a tightening fiscal vice of high debt and rising pension and health insurance costs, City Council members said yesterday.
Council spent its first meeting on a proposed 2006 budget throwing itself on the mercy of the commonwealth and criticizing the state-appointed recovery team created under Act 47 for not dealing with major issues.
"The Act 47 plan stinks," said Councilman Luke Ravenstahl. "We're no better off than we were before."
He said council and Mayor-elect Bob O'Connor should lobby Harrisburg for help.
An analysis by council's budget staff found that the last three years have seen cuts in public safety and public works costs. But those have been more than offset by rising debt, employee benefit and pension costs, which are expected to eat up 52.5 percent of the city's $418 million budget next year.
Those costs, council members said, haven't gotten enough attention from the Act 47 team. Act 47 team co-leader James Roberts could not be reached for comment.
Pension costs especially are worsening, thanks to hundreds of police and firefighter retirements and declining state aid.
The city needs to put $37 million into its pension funds next year, up from $23.9 million in 2003, council Budget Director Scott Kunka said. State pension aid to the city, though, has dropped from $18.2 million then to $17.2 million next year.
Council members said the state could help by changing the formula governing pension aid, allowing city workers to join the state health insurance plan or reimbursing revenues lost due to the many tax-exempt entities within city boundaries.
"We have made the hard cuts" state officials asked for, Mr. Ravenstahl said.
The 2006 plan would slash another 175 positions from the budget, adding to 771 cuts since 2003, Mr. Kunka said.
Council Finance Chair Doug Shields said he would not vote for the budget proposed by Mayor Tom Murphy as it now stands. He also wondered how much latitude council will have to change the budget, if and when it is approved by state overseers.
(Rich Lord can be reached at rlord@post-gazette.com or 412-263-1542.)
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