Pittsburgh councilman says he'll heed controller's budget shortfall warnings
PITTSBURGH (KDKA) -- Is the city of Pittsburgh headed into a fiscal disaster?
On Wednesday, City Controller Rachael Heisler warned of a major budget shortfall and the need for immediate action. One city councilman tells KDKA-TV Lead Investigator Andy Sheehan he will heed that warning and ask council to do what's necessary to shore up city finances.
City Controller Rachael Heisler sounded the alarm, warning the city is heading into a financial crisis and needs to take action now.
"It would have been smart to do last year, it's smart to do today, it's smart to do tomorrow. We cannot wait because the longer you wait the more painful the cut or modifications in spending is going to be," Heisler said.
On Wednesday, Heisler sent a letter to the mayor and council saying the city's budget is grossly unfunded and does not take into account tens of millions of dollars it stands to lose in Downtown real estate assessments appeals and a tax on visiting athletes and performers which the courts of have ruled unconstitutional. Recently sworn-in Councilman Bob Charland agrees.
"We need to be honest, and if that budget has things in it we know are lies, then we need to do our work to make sure that we're being truthful and honest with the public here about what our situation is in the years to come," Charland said.
Charland says he will heed Heisler's warning and ask his fellow councilmembers to reopen the budget to begin taking the necessary actions.
"If we need to make cuts now, if we need to do measures of austerity like a hiring freeze, those things are things that we need to have those conversations in March of 2024," Charland said.
For its part, the Gainey administration says it anticipated and budgeted for much of the decrease and can make adjustments to avoid a shortfall.
"As we get further into the year and we keep tabs on our quarterly spending, I think that's when we'll have a better sense. At the same, I think there are plenty of places where we have flexibility worked in," said Patrick Cornell, the city's chief financial officer.
The city will be helped this year by the last cash infusion from the Biden administration's pandemic-era American Rescue Plan. But Heisler and Charland say cuts are needed now to avoid future pain, even if the administration doesn't agree.
"I believe there are other council members who are ready to take this seriously. It would be nice if folks on the other side of the hall were as concerned as we are," Charland said.
Charland believes that other council members will be heeding this call and make the necessary cuts to ensure the city rights its financial ship.