Mayor Corey O’Connor says Pittsburgh’s financial problems are worse than expected.
Mayor O’Connor says the city faces a $250 million budget gap over the next five years.
He tells KDKA Radio’s Marty Griffin the financial picture is worse than expected, calling it “death by a thousand cuts.
“Five-hundred thousand here, a million here, eight-million here and it just adds up over time,” said O’Connor.
O’Connor didn’t directly blame the previous administration under Ed Gainey but said his administration’s projections are showing different numbers.
O’Connor is calling on City Council to act.
The city could also face a $30 million deficit this year, despite 70 million dollars in nonprofit donations. councilwoman barb Warwick says those donations are not guaranteed.
“We do have these commitments now, and that’s great, it’s a little bit, but it’s clearly not enough,” said Warwick. “We need to know that we have funding we can count on every single year.”
Warwick was raising taxes isn’t the answer and is pushing for changing the city tax code that would increase property taxes in small increments (1 or 2 percent) a year.
The $250 million deficit is about two times more than the city's current rainy-day fund.
One reason for the red ink is the Gainey administration underestimated city spending and overestimated tax revenue.
O'Connor says every area of spending will be reviewed. A balanced budget must be submitted to council by September 30.
