Wednesday, July 30, 2003

By Timothy McNulty, Post-Gazette Staff Writer

Frustration with the Murphy administration's handling of the city budget boiled over yesterday for two Pittsburgh City Council members, who demanded that the mayor set a final date to secure state help or follow through on his promises to cut jobs or city services.

"This is starting to get embarrassing," said Councilwoman Twanda Carlisle, who called on Mayor Tom Murphy to come forward with new budget plans, not necessarily cuts.

"It's time to put up or shut up. We need to do something," she said.

Councilman William Peduto knows what he wants the city to do: become financially distressed under state Act 47, which provides bankruptcy-type protections.

Murphy has to set a drop-dead date for getting budget assistance from the state Legislature, he said, so the city can plan for the distressed designation.

Murphy's 2003 budget, adopted by council in December, counted on getting the state aid -- and an uncompleted $15 million fire-Emergency Medical Services merger -- by July 1 to help offset a roughly $60 million budget deficit. Without the help, Murphy has said he will be forced to cut services and 400 city jobs, and consider bankruptcy. When the General Assembly began working into July, Murphy said he would hold off making cuts until late this month.

Monday night, the state Senate recessed indefinitely without taking action on Pittsburgh's request for financial aid or statewide issues.

The House is set to meet in a brief session Monday but after that could be in recess until late September.

"We need both houses to be in session in order to do the Pittsburgh package," said state Rep. Dan Frankel, D-Squirrel Hill.

He said the Pittsburgh aid package is "in limbo because it's tied to the state budget process," which includes the potential for expanded gambling, school property tax reductions, greater aid to school districts statewide and economic development initiatives.

"It's difficult to force this [Pittsburgh] issue to be resolved independently of all the other issues the Legislature is facing," Frankel said.

The Senate could still return to work at the call of its Republican leaders, but it isn't known when that might happen. City Council is set to recess for nearly a month, starting next week.

That means city lawmakers could go into September without knowing whether the city will receive the state-authorized new taxes and pension aid it needs to erase the budget deficit.

Yesterday, mayoral spokesman Craig Kwiecinski noted the Senate could still reconvene, and said Murphy's promised budget cuts remain "contingent on the Legislature recessing for the summer."

Some council members, such as Sala Udin and Gene Ricciardi, asked for patience with Murphy's budget efforts, saying it is possible the General Assembly could still approve city aid.

"We have to hold on, allow this process to reach its potential, and we will have adequate time to act. But that time is not now," Udin said.

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