Pittsburgh’s top budget director says there is no need for a tax hike

PITTSBURGH — The mayor’s top budget director is weighing in for the first time on a proposed tax hike in the city of Pittsburgh.

Chief Investigator Rick Earle spoke with Deputy Mayor Jake Pawlak.

Pawlak said the city can get by without a tax increase and was adamant about it, but he did issue a stern warning that there’s no margin for error and times will be tough.

Earle: You still think they can get by without a 30 percent tax hike?

Pawlak: I think there’s a thin margin of error in what we proposed that would not require a tax increase.

Pawlak is standing by his budget proposal despite criticism from the city council that the numbers just don’t add up.

That prompted council member Barb Warwick to propose a 30% property tax hike to make up what the council calls a nearly $30 million deficit.

Earle: You don’t think there’s a 20 to 30 million dollar gap?

Pawlak: We do not and I think they are looking at a part of the picture on overtime spending and utility spending.

While under intense questioning by the council on Wednesday afternoon, Pawlak defended the budget but admitted that there’s no room for any extra spending on things like aging city vehicles and demolition of abandoned properties.

Pawlak: We did not include new expenditures to improve services in any of the categories you just mentioned.

Council member Anthony Coghill criticized Pawlak and the administration for spending millions on affordable housing.

Coghill: We misspent, squandered, however you want to say it. When I say “we,” I don’t mean the administration; I mean both of us. We approve.

Council president Dan Lavelle spoke out for the first time after proposing a 5% cut in every city department.

Lavelle: I think there are a good majority of council members who are not going to be willing to raise taxes unless we tighten our own belts first.

The council will hold a public hearing on the budget on Saturday, December 20 at 11 a.m.

The final vote on the budget will take place the very next day, on Sunday afternoon.

They’ve set this aggressive schedule because the home rule charter requires a budget by December 31st.

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