11 Investigates: City controller calls Pittsburgh’s financial situation ‘precarious’

PITTSBURGH — City Controller Rachael Heisler, at a news conference Wednesday, released the annual financial report and talked about city finances so far this year.

She said there’s not a crisis yet, but instead a call for action. She added that what is happening now is not sustainable.

“I’d say we’re in a precarious financial situation. I think we need to have a plan for cost containment, and we need to have a plan for revenue growth,” Heisler said.

Controller Heisler is sounding the alarm about the city’s financial situation. She said the city has spent $24 million more this year than at the same time last year.

“That’s a significant increase and is unsustainable,” she said.

During the news conference, Heisler suggested the city should negotiate an agreement with UPMC and the other big non-profits to increase revenue and take a hard look at all programs.

“What programs and priorities should we hit pause on or should we delay? We have a fleet that’s in a dire situation. We have a staffing crisis in our Public Safety bureaus, and that’s where we need to be investing rather than in programming that isn’t perhaps necessary,” Heisler said.

Heisler also highlighted some financial improvements. She said real estate taxes are up from last year. So is earned income, along with licenses and fees.

But she said there’s been a decline in the amusement tax, deed transfers and interest earnings.

Deputy Mayor Jake Pawlak is downplaying any cause for concern.

“We’re feeling very confident about overall spending and overall revenue,” Pawlak said.

To back up his claims, Pawlak said so far this year the city has brought in more money than it has spent, and he’s optimistic that trend will continue.

“Based on those preliminary figures, we’re feeling confident about overall spending, and keeping overall expenditures for the year within the ballpark of projections and ending with a surplus,” Pawlak said.

Pawlak and Heisler expressed concern about rising overtime costs. Pawlak acknowledged that efforts to rein in overtime haven’t quite worked, but he vowed to continue exploring ways to reduce the overtime costs.

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