Peduto formally asks state to keep Pittsburgh in financial distress program

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Mayor Bill Peduto is imploring Gov. Tom Corbett to keep the city under state financial oversight, which it entered about a decade ago when it was “teetering on the edge of bankruptcy.”

In a letter released this morning, Mr. Peduto asked for time to prepare an exit plan before the city was removed from the state program for municipalities in financial distress, known as Act 47. The designation resulted in the state appointing a financial recovery team to oversee the city’s finances. The state Legislature also created an additional oversight board, the Intergovernmental Cooperation Authority, whose five members are appointed by the state legislature and the governor.

“I write to you today to respectfully request that the city of Pittsburgh remain under Act 47 state oversight to allow my new administration to work with the Act 47 Coordinators and Pittsburgh’s Intergovernmental Cooperation Authority to craft on final recovery plan — an exit plan from Act 47 that will leave our city truly fiscally sound,” he wrote in the letter dated for Tuesday.

As a councilman, Mr. Peduto lobbied heavily for the city to enter state oversight. Former Mayor Luke Ravenstahl, who left office Monday, had asked the state to remove the city from Act 47.

Moriah Balingit:, 412-263-2533 or on Twitter @MoriahBee.

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