Monday, September 24, 2007
Is Pittsburgh’s New Budget a Conservative One?
Though we have not seen all of the budget documents or the five-year financial forecast as of yet, here is what we have been able to piece together from newspaper reports on the City of Pittsburgh’s 2008 budget.
On the spending side, there is a projected increase of “$4.3 million to $423.7 million”. That means this year’s spending will end up at $419 million, which is where it was projected to end in last year’s financial forecast.
If that increase holds, the $4.3 million growth amounts to a 1 percent increase, well below the 2.7 percent increase contained in last year’s forecast. In other words, the City was set to spend $431 million in 2008 but now appears to be spending below that at $423 million. Based on the current population (312k), the per capita difference from the new budget amounts to a $26 reduction.
And instead of borrowing more dollars, the City would finance capital improvements out of current funds.
Will this amount hold? If it does, the City is to be congratulated on its stance and officials ought to take that momentum and pass an ordinance which would call for a City Charter amendment to codify an annual spending limit.
On the spending side, there is a projected increase of “$4.3 million to $423.7 million”. That means this year’s spending will end up at $419 million, which is where it was projected to end in last year’s financial forecast.
If that increase holds, the $4.3 million growth amounts to a 1 percent increase, well below the 2.7 percent increase contained in last year’s forecast. In other words, the City was set to spend $431 million in 2008 but now appears to be spending below that at $423 million. Based on the current population (312k), the per capita difference from the new budget amounts to a $26 reduction.
And instead of borrowing more dollars, the City would finance capital improvements out of current funds.
Will this amount hold? If it does, the City is to be congratulated on its stance and officials ought to take that momentum and pass an ordinance which would call for a City Charter amendment to codify an annual spending limit.
