City of Pittsburgh Council District 4
Statement on Draft Act 47 5-year Recovery Plan Introduction

Today, the Act 47 Recovery Coordinators’ draft 5-year plan for the City of Pittsburgh’s financial outlook was introduced to City Council for deliberation. The independent, state-appointed Act 47 Recovery Coordinators have created two previous plans, the 2004 Recovery Plan, and the 2009 Amended Recovery Plan, with the goal of reducing the City’s debt,  funding the City’s pension obligation, improving the City’s financial management, and increasing the City’s revenues.

Though some of the recommendations from these two plans have been implemented, there is still much work to be done.  We are no longer in crisis mode but we have real issues that must be addressed. The Recovery Coordinators’ analysis shows that:

  • New budget projections reveal a real structural deficit from 2015-2019
  • Expenditures are outpacing revenues and pension costs are growing
  • By 2018 our reserve fund will be depleted and we will have no capital budget
  • Our current capital needs far exceed our ability to invest resources

The analysis also shows how the 2013 millage rate adjustment has caused a loss of property tax revenue. Looking forward, the Act 47 Coordinators have analyzed the City budget, and have drafted a 5-year plan focused on continued debt, pension, and cash flow management, with a particular focus on restoring real estate tax revenue lost in 2013 and investing in overdue maintenance on infrastructure like buildings, roads, and bridges.

You can view the Act 47 Committee’s draft plan and recommendations here.


Right now, the draft plan is just that—a draft. Over the next month, City Council will review and debate the independent analysis and will vote on a set of recommendations. Passing this plan only means we have work to do; the real deadline is the end of the year when the budget has to be passed. These recommendations will guide the work required of the Mayor and Council over the next six months to ensure that the City’s 2015 Capital and Operating budgets deliver the service, amenities, and infrastructure City residents deserve.


You can view the City’s budget archive here.


I look forward to examining the plan with my fellow Councilmembers, and working with the Mayor’s administration and city taxpayers to propose creative revenue and management solutions to ensure that Pittsburgh sees continued and improving service and investment for years to come.


There will be a Public Hearing on the plan at City Council Chambers on Monday June 16 at 10am. The meeting will be televised online and on the City Channel (Comcast Channel 13, Verizon FiOS Channel 44). Live Cable Channel Web Feed is also available. Citizens can call 412-255-2138 to sign up for 3 minutes to speak. We will post more information as it becomes available.

Tuesday, June 3, 2014
Ashleigh Deemer
Chief of Staff
Office: 412.255.2131



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