There’s an $8.6 million-dollar deficit in the City of Pittsburgh budget this year, and the red ink could go up to $40 million in the next five years.
That was the sobering message last week from Mayor Corey O'Connor who said he is reopening this year’s budget and plans to make spending cuts. It turns out Controller Rachel Heisler was right when she repeatedly warned the previous mayor that red ink was ahead. O'Connor said he’s not considering new taxes, layoffs or cuts to critical services but, unless the city gets a huge windfall, painful cuts will be necessary.
One revenue possibility is $37 million in property taxes the city is not getting from the five biggest non-profits.
Perhaps an agreement for payments in lieu of taxes can be reached.
In addition, the “big five” could help to fund non-critical services that would otherwise be reduced or eliminated.
Mayor O’Connor inherited a troubling financial situation, one that will test his ability to lead and make tough decisions; the kind that make people mad.