The City of Pittsburgh has structurally balanced its budget with recurring revenues consistently outpacing expenditures. It has adopted a series of financial management tools that will guide the decision-making of future leaders on fiscal issues to ensure budgetary stability. Pittsburgh has implemented a strategy to address its legacy costs of retiree pensions, retiree health care, workers' compensation and capital needs with funding and management tools to moderate growth. After weathering a deep recession while preserving a strong operating balance, the financial outlook for the City of Pittsburgh is positive. The City’s Act 47 Coordinator recommends that the Commonwealth of Pennsylvania rescind its declaration of financial distress for Pittsburgh.
This report reviews the City’s financial and operational achievements since 2003 and confirms that Pittsburgh has met the requirements for exiting Act 47 oversight. In addition, the report articulates ongoing challenges that the City must continue to tackle after Act 47 oversight has ended, and recommends ways that the City can continue to meet its future obligations while maintaining a sufficient fund balance and positive annual operating results. The Coordinator is hopeful that the Administration and Council will continue to adopt best practices for municipal governance, and encourages future leaders of the City to do the same. Because the Intergovernmental Cooperation Authority for Cities of the Second Class (ICA) will remain in place if the Commonwealth rescinds the Act 47 designation, external guidance and support for continued progress is assured.
Office of Mayor Luke Ravenstahl
512 City County Building | 414 Grant Street
Pittsburgh, PA 15219
telephone: 412-255-2626 | facsimile: 412-255-2687