Financial impact on City gov't (Philadelphia, Pittsburgh: sales, unemployment, school districts)

[tyovan4]

The financial impact of the coronavirus pandemic on Pittsburgh city government will be “deep and long lasting,” potentially changing the course of capital projects and other initiatives for years to come, a city official said Monday.

Dan Gilman, Mayor Bill Peduto’s chief of staff, said the budget office is working on projections. He could not provide the exact toll on city finances.
...
Gilman said he anticipates a future hold on hiring and cancellation of capital projects, including facility and equipment upgrades this year and for years in the future.

“The city has to make payroll and stay within a balanced budget,” he said. “It will take a tightening. The hit could be for many years.”

https://triblive.com/local/pittsburg...asting-impact/

This is going to hit municipalities hard.

[Independentthinking83]

Originally Posted by tyovan4

This is going to hit municipalities hard.

Indeed. Pennsylvania is a state going to be hit very hard. We are going to see how sustainable 43 school districts and 130 municipalities are in Allegheny County. I never thought I would live to see government and school district right sizing in western pa. This makes it certain to happen now. We will see how solvent Pittsburgh City is as well. There are going to be lots of municipalities and schools that won’t survive this event. There are going to be a lot of jobs that don’t survive this event either. It is going to thin the herd by a good bit.

On a national level, Ohio governor has requested 20 percent budget cuts from each state department. They have 1/3 the size of PA government serving 90 percent of the population size of PA.

The Trump administration has requested that states stop reporting daily figures for those signing up for unemployment. I heard 15% percent of the Pittsburgh area workforce has filed for unemployment.

[erieguy]

More clicks and more fear mongering. This is probably the headline for most cities everywhere.

[gg]

In a couple of weeks we will be doing much better. We just need to keep educating ourselves and get back to work, but smartly.

[szug-bot]

Originally Posted by erieguy

More clicks and more fear mongering. This is probably the headline for most cities everywhere.

sure, but it needs to be reported. i think fear mongering is when there is irrational speak, posing as fact. the link is more a warning, a prognostication.

[erieguy]

Originally Posted by szug-bot

sure, but it needs to be reported. i think fear mongering is when there is irrational speak, posing as fact. the link is more a warning, a prognostication.

Nobody knows exactly how long it’s going to last and/or what financial devastation it may cause in regards to funding. It simply gets people more worried and instills more fear to those already in panic mode.

[Independentthinking83]

Pennsylvania has a golden opportunity to encourage mergers and consolidation. There is no reason to keep funding all of these municipalities and school districts.

Once they have this virus spread under control things slowly but surely will return back to some degree of normal.

The state will focus on propping up the Philly and capital regions first. They are the major moneymakers for the state. If there is money left over it may come here. I wouldn’t count on it. I think western pa is going to be on its own on this one. There isn’t going to be a federal or state rescue coming here.

The good thing about this event it is going to thin the herd and force change whether people want it or not. We can get some real change and consolidation around here. I expect the economic impact to meet or exceed the economic collapse in 1982. Just now it won’t be western pa. It will be nationwide. Lots of cities and probably Pittsburgh as well will have to start back at zero like the last few decades never happened.

I am interested in seeing how many higher education organizations don’t make it. I expect some colleges to fold and others may be altered forever after this

[tyovan4]

Originally Posted by Independentthinking83

The state will focus on propping up the Philly and capital regions first. They are the major moneymakers for the state.

Harrisburg region is very strong in terms of logistics industry - they'll be ok.

[tyovan4]

Pittsburgh will end 2020 with a deficit for the first time in years, and Mayor Bill Peduto said there’s no way to predict when the economic situation might improve.

Peduto, who left self-quarantine Wednesday, spent the day conducting media interviews. He told the Tribune-Review that he expects a significant decline in tax revenue with most businesses shut down because of the coronavirus pandemic and the city can’t count on help from the federal government.

“We recognize that our revenues are going to be down, and our expenditures are going to be up and we will end in a deficit for the first time since I’ve been mayor,” he said. “That’s a stark reality and that’s why we have a reserve fund to help, but we can’t continue to operate that way.”
...
He said the the offices of U.S. Sen. Bob Casey, D-Scranton, and Rep. Mike Doyle, D-Forest Hills, have reported that federal funds will go only to cities with populations exceeding 500,000.

“As presently written the bill would only apply to Philadelphia in the state of Pennsylvania,” Peduto said.

Pittsburgh Controller Michael Lamb agreed that the city is likely facing deficit spending for 2020, but cash flow could become an immediate problem as tax revenue dries up.

https://triblive.com/local/pittsburg...ficit-in-2020/

[Charley Barker]

Before we start feeling too badly for a city like Pittsburgh, think of cities under 500,000 that rely on sales tax and tourism revenue to a far greater extent. There are many examples. Here's a few: Savannah, GA; Charleston, SC; Santa Fe, NM; Reno, NV. Just about any SE coastal community this time of year that hosts tons of conventions. They will never recover that revenue. Also the smaller cities in eastern PA that are relatively much harder hit (so far) than Pittsburgh. Philly and surrounding counties and cities need resources NOW, so I don't begrudge them.

This will be a slap in the face short-term for the city, but it will recover. Long term is TBD.