Peduto's pick for Office of Management and Budget owes $83,000 to the IRS

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The man who Mayor Bill Peduto tapped to head his newly formed Office of Management and Budget owes the Internal Revenue Service tens of thousands in back taxes, records show.

The mayor announced Wednesday that he was hiring Edward Kiely, who heads a consulting firm based in Pittsburgh, to lead the department, citing his extensive experience in helping businesses. Mr. Kiely was hired through Talent City, a foundation-backed initiative intended to take the politics out of hiring by using outside committees to cull top candidates for a position, giving the mayor the final word. His position, which will pay $96,410, has to be confirmed by city council.

Mr. Kiely owes around $83,000 in federal taxes. He could not be reached for comment, but the mayor's chief of staff Kevin Acklin said Mr. Kiely was forthcoming about the back taxes during the interview process.

Mr. Acklin said Mr. Kiely explained that he did work for a large client who never paid him, causing financial strain that led him to fall behind on his taxes.

"We don't think this is a statement of his integrity or his character or his capability," Mr. Acklin said. "He has substantial experience as someone who focuses on performance-based budgeting."

Mr. Kiely holds a Ph.D. in management from the University of Pittsburgh. He ran two unsuccessful campaigns for city controller. He also headed the Pennsylvania Economy League for a time and was a chief auditor for the Allegheny County controller's office.

Mr. Peduto said he hired Mr. Kiely because of his background and because he believes he has the credentials to lead the city toward a "performance-based budgeting" model that would use fine-tuned metrics to determine where and how money should be spent.

Mr. Peduto also announced his intention to retain Margaret Lanier as city treasurer and Scott Kunka as finance director. Both worked under former Mayor Luke Ravenstahl.

Moriah Balingit:, 412-263-2533 or on Twitter @MoriahBee. First Published February 5, 2014 5:22 PM

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