Peduto warns of job cuts without federal virus aid
Pittsburgh Mayor Bill Peduto again sounded the alarm about municipal financial disaster facing cities and towns across the nation if federal COVID-19 relief funds aren’t made available, this time warning that his own city would likely have to cut jobs, including those in the public safety ranks.
“If we were to have to present a budget at this moment, we would be $100 million short,” Mr. Peduto said. “If we were to lay off 400 employees across all departments, 10% reduction through every department, that would make up around $25 million out of that $100 million. It wouldn’t even come close to filling the hole. It’s the reality of where we are.”
The mayor shared the comments at a virtual news conference convened by the Pennsylvania Municipal League that featured his counterparts and a council member from cities across the commonwealth, including Altoona, Easton, Lancaster, Philadelphia and Pittston.
Of the city’s $608 million budget in 2020, 42.3% is allocated for salaries and wages, 33.5% for employee
benefits and 9.2% to debt service.
Peduto said he has had discussions with City Council members on delaying presenting a budget beyond the expected September time frame “until November in order to see what Washington does and what our reality is regarding revenue for next year.”
“As of today, our reserve fund is gone. We have spent our entire reserve fund in order to pay the bills,” he said.
The city has built up approximately $85 million in reserves since 2014.
Mr. Peduto has been warning of “dark days ahead” since April. In May, the city announced a hiring freeze on 64 unfilled positions, saving an estimated $3 million in salary costs, according to city officials’ estimates. Additionally, the mayor asked city directors to cut nonpersonnel costs by 10% citywide.
In July, he joined mayors from across the country — not for the first time — to warn the federal government cities will likely have to cut critical services and jobs if Congress doesn’t deliver another rescue package that includes municipal relief. Mr. Peduto specifically cited Pittsburgh’s dwindling parking and amusement tax revenues.
Mr. Peduto said Friday he joined both Democratic and Republican mayors from Michigan, Ohio and Pennsylvania to call for emergency funding for Rust Belt cities and towns still recovering from industrial collapse and the Great Recession that began in December 2007.
“Having a third nail put into the coffin because we can’t get a national response to COVID would mean economic recovery may never come,” the mayor said Friday to news media after a ribbon cutting. “These are three battleground states for the vote to see who will be in the White House, and if the Trump administration believes that it supports first responders, then the first thing they should be doing is assuring that they have a job on Jan. 1.”