City updates budget impacts from pandemic
May 12, 2020
The latest budget numbers for the City of Pittsburgh in the midst of the COVID-19 pandemic show severe dips in revenue collection matched with drops in spending as well.
From March through May 8 of this year, data from the Office of Management and Budget shows revenues were $94,401,623 while revenues for the same period in 2019 were $126,398,602, a difference of $31,996,979 and a drop of 25%.
Expenses from March through May 8 this year were $101,542 while last year during that period they were $109,253,127, a difference in spending of $7,711,077 and a drop of 7%.
"The City is holding its own through frugal spending but the gaps between our revenues and expenditures are likely to widen further. With the help of City Council and the leaders of all City departments we will have to keep a hard watch on spending until the financial impacts of the COVID-19 pandemic become clearer," Mayor William Peduto said.
Last month the city estimated it will suffer a 21% cut in projected revenues in 2020, going from $608 million down to $481 million, for a total loss of $127 million. Over a five-year period from 2020-2024 the City expects to lose a total of $239 million, which amounts to a 7.5% cut.
The tax revenues most impacted by economic hardship triggered by the pandemic are payroll, parking, earned income and property taxes: these four taxes alone could see $97 million in losses just this year.
In response the city instituted a hiring freeze across all departments expected to save an estimated $3 million in salary this year, and is drafting plans for 10% cuts in non-personnel spending across all departments.