Financial impact on City gov't (Pittsburgh, Penn: home, luxury, college)

[erieguy]

Originally Posted by Goog Game Well Played

City police are underpaid. They actually answer calls. Cops in the south hills and the well to do burbs around the city make too much. They’re draining the funds and are a cause for tax increases.

Tell me why monreville cops need to make $52.00/hr straight time???

Why does Whitehall make 100k a year. They’re not proactive police departments. They’re not doing much besides going to eat n park.

Places like Whitaker and Braddock making 13 bucks an hour is a crime.

When was there a tax increase due to cops being “overpaid”?

[Independentthinking83]

Peduto is upset pittsburgh in line to get 0 dollars from the stimulus. He lobbies for Pittsburgh as well as other cities like Huntington, WV and Dayton, OH to be included.

If they go by 2010 census numbers it will be 33 US cities to receive funding. Going by estimates only it would be 36. That is a lot of cities.

Pittsburgh is smaller than Henderson, NV which is a Las Vegas suburb. We are 66 in size, with Greensboro, NC and Anchorage, AK within striking distance of passing us up.


https://www.pghcitypaper.com/pittsbu...t?oid=17022877

[qwerty01]

It is very likely that federal, state, and municipals will see a sharp decrease in revenues for their respective fiscal years. Governments generally issue bonds to cover expenses during these periods, but tend to pay a premium on interest rates if there is a major economic downturn. To combat this liquidity crisis at a more localized level, the US Federal Reserve announced another massive round of stimulus this morning. This one includes an additional $500B program for the Fed to actually buy municipal bonds for the first time ever. Unfortunately for Pittsburgh and Allegheny County, the requirements mandate the county must hold over 2M people or the city itself over 1M to recieve this assistance. This is very unfortunate for us.

https://www.federalreserve.gov/newse...y20200409a.htm

[tyovan4]

“Despite years of sound fiscal management, the scale of this crisis has simply been overwhelming – it is only a matter of time before we will face cash flow issues affecting our ability to pay first responders and essential workers. We need relief and we need it now,” Mr. Peduto wrote in a letter to Mr. Trump dated Saturday.
...
The city faces an estimated 21% decrease in projected revenues for 2020, “going from $608 million down to $481 million, for a total loss of $127 million,” according to mayor’s office.


Echoing Mr. Peduto’s public address Thursday, the office also said Monday in a press release that the city could face a 7.5% cut in tax revenue — or $239 million — over the next five years.

The office called the projections “extremely fluid” and said the figures could change depending on how long businesses remain closed.

https://www.post-gazette.com/local/c...s/202004200080

Doesn't seem good...

[Independentthinking83]

Originally Posted by tyovan4

Doesn't seem good...

Nope. A budget shortfall of 127 million will likely push the city towards filling for bankruptcy.

When Pittsburgh entered Act 47 in 2003 it’s predicted deficit was 30 million and swelling to 72 million by 2005. That was a walk in the park compared to this

The city isn’t going to get the money to stay solvent. Money is going to cities at least 500,000 in population.

This shutdown is going to Permanently cripple governments and school districts in this area. There will be consolidation and mass layoffs.

[erieguy]

Originally Posted by tyovan4

Doesn't seem good...

Hence the need to come up with solutions to get people back to work rather than simply declaring businesses non essential and shutting them down.

[Independentthinking83]

Originally Posted by erieguy

Hence the need to come up with solutions to get people back to work rather than simply declaring businesses non essential and shutting them down.

Bingo. It needs managed. The government is picking economic winners and losers once again.

[Independentthinking83]

It doesn’t look like McConnell is in favor of any more federal money for state and local governments. He wants bankruptcy to be an option. Maybe this is a good move for Pittsburgh. Wipe the slate clean with pension debt. Bring taxes and parking down.

https://www.cbsnews.com/news/mitch-m...id-2020-04-22/

[tyovan4]

Originally Posted by Independentthinking83

Wipe the slate clean with pension debt.

That's an abomination. Those pensions aren't given away for free - the employees are mandated to contribute to them. They don't have the right to stop pension contributions, so the government also doesn't have the right to retroactively pull the rug out from under them.

Now, if there is a move for new hires moving forward to be switched to a hybrid pension/401k (or 357b) type plan, that is a different discussion. But to just break the bond of the pension promise - that's something else.

[Independentthinking83]

Originally Posted by tyovan4

That's an abomination. Those pensions aren't given away for free - the employees are mandated to contribute to them. They don't have the right to stop pension contributions, so the government also doesn't have the right to retroactively pull the rug out from under them.

Now, if there is a move for new hires moving forward to be switched to a hybrid pension/401k (or 357b) type plan, that is a different discussion. But to just break the bond of the pension promise - that's something else.

But they could take the money you contributed toward the pension and put it into a government style 401K correct? Are they obligated to to pay their share if they go bankrupt?

If Peduto is says the shortfall is that bad there is no way they will be able to make that up, nor will there be rescue money coming from the state.

I think anybody who works for Allegheny County is in the best position. I don’t see the city or local governments coming out of this and making it with this loss in revenue.