Council lets mayor delay budget process amid flux

The city of Pittsburgh likely will bypass the Sept. 30 deadline for a preliminary budget this year due to economic uncertainties caused by the COVID- 19 pandemic.

City Council on Wednesday gave a tentative nod to allowing the mayor’s office to forgo the preliminary budget process.

Pending final approval, the mayor’s office now will submit the operating and capital budgets to council on the second Monday of November.

“There’s such a huge question mark that we didn’t see the value in a process around such a budget in flux, and instead it’s better to spend the time and effort with council and the public on budget scenarios both with the hope of a federal relief pack and one with the very real possibility of no federal action,” said

Dan Gilman, chief of staff to Mayor Bill Peduto.

In early August, Mr. Peduto publicly floated the idea of delaying the budget presentation.

The city faces a roughly $ 100 million shortfall, according to the mayor’s office.

Mr. Peduto has joined hundreds of mayors from across the nation in urging Congress and President Donald Trump to pass a relief package that includes emergency funding for municipalities with populations of less than 500,000.

No deal has been reached.

Several of the city’s revenue streams were hit as businesses temporarily — or permanently — shuttered and people remained indoors to stop the spread of the highly contagious respiratory coronavirus.

“Going into 2019, we had a surplus of $ 20 million and a general fund revenue balance of $ 133 million. As COVID hit, we have losses in parking tax, amusement tax, [ we’ve] taken huge hits. It could be a lot worse,” Doug Anderson, the city’s acting finance director told council Wednesday.

Mr. Peduto said in August that the city’s $ 85 million reserve fund, built up since 2014, had been spent “in order to pay the bills.”

“If we were to lay off 400 employees across all departments — [ a] 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,” he said on Aug. 11.

All eight members of council present voted to give an affirmative recommendation to forgoing the preliminary budget deadline. Council President Theresa Kail- Smith was absent.

Councilman Corey

O’Connor requested updated budget shortfall figures by Tuesday.

Council will take a final vote Tuesday.

Council moved for one week Mr. O’Connor’s bill that would require legislative approval of police use of facial recognition technology. Council is expected to introduce technical amendments and discuss the bill Wednesday.