PITTSBURGH (Newsradio 1020 KDKA) - During a virtual news conference sponsored by the Pennsylvania Municipal League, Mayor Bill Peduto made some dire predictions about the city's finances in wake of the coronavirus.
"As of today our reserve fund is gone," said the mayor. "We have spent our entire reserve fund in order to pay the bills."
Peduto blames the loss of revenue from the Amusement, Parking and other taxes. Plus increased costs due to the virus, mostly in public safety. He predicts a $100 million dollar shortfall by the end of the year.
"If we were to lay off 400 employees across all departments, a ten percent reduction through every department, that would make up around $25 million out of that $100 million."
Peduto and other city leaders who met for a virtual PA Municipal League news conference are asking Congress to target cities in the next COVID funding package. But will there be a package?
Pennsylvania U.S. Senator Pat Toomey issued a statement even before the news conference saying Congress has already sent half a trillion dollars to state and local governments to cover COVID costs, . Medicaid, public health, hospitals, schools, and mass transit. The statement says Pennsylvania is sitting on more than $1 billion and Allegheny County has spent a fraction of the funds committed.
"States and counties should allocate the existing allotments so we can thoughtfully determine what needs remain," said Toomey in the release.
When asked about the statement, Peduto said those dollars aren't making it to cities.
"The senator voted on these bills. He knows that the money is not coming to the cities. And yet he is going to allow hundreds of firefighters and police officers to lose their jobs," said Peduto.
Allegheny County released a statement later in the day saying it has posted a new dashboard on the Budget and Finance page so the public can track Cares Act funding. The statement says $24 million has already been distributed with another $59 million committed. It says $83 million or 39% of its Cares Act funding will be spent by the end of the month.
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