The Secretary of the Department of Community and Economic Development in a recent speech said Pittsburgh needs to find new sources of revenue to deal with its heavy debt burden and pension problems. He also said the City needs to cut spending.
The problem with the City raising more revenue is that it is already over taxing residents, businesses and commuters. Finding new sources of revenue is highly problematic. Bear in mind too that City schools with spending at $20,000 per student absorbs much of the City’s tax base.
The City hasfailed to cut spending over the last five years even though it is in Act 47 distressed status. Contracting with the private sector or the County to provide services, selling assets to raise funds and making serious employment reductions is the way the city must go. Higher taxes are a jobs destroying strategy the City must avoid.
