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City in crisis, but no hurry
Friday, October 08, 2004
By Timothy McNulty, Pittsburgh Post-Gazette

Things are getting even nuttier inside city government, if that is possible, as the city inches closer to its estimated bankruptcy date in mid-December.

City Council President Gene Ricciardi called reporters yesterday to say he is offering a $1,000 ransom to anyone who brings Mayor Tom Murphy's finance director to his office today to discuss city budget plans.

Finance Director Ellen McLean did not attend a Wednesday council session where Ricciardi discussed his budget plan, which involves defaulting on city pension payments and accelerating tax collections over the next few months to hold off the insolvency predicted for December.

Council was supposed to have a meeting Monday to discuss budget planning, and Ricciardi announced his ransom offer after the mayor's office said McLean would not be at that session, either. The administration said McLean and other officials could be there Oct. 20 instead.

"There's $1,000 on the line. I'll give her a grand if she shows up," Ricciardi said. "We're at the point where we have to make important decisions on this budget. Where is she?"

Mayoral spokesman Craig Kwiecinski said McLean is "out of the country for personal reasons," so Ricciardi's money is safe, as he surely knew before announcing his offer.

The Murphy administration plans to borrow $15 million to pay the city's bills in December and another $40 million early next year. It is lobbying the state for increased occupation taxes and new payroll taxes as a long-term budget solution.

Instead of borrowing money, Ricciardi wants to default on a $13 million pension payment due in December and pay it instead next year along with a $1.1 million penalty. He also wants to offer a 3 percent early-bird discount to those who pay their 2005 property taxes in the first week of January, which he said would boost collections by $7 million.

The city usually does not issue its tax bills to property owners until late January.

Ricciardi got only two votes for his tax plan Wednesday, and a final vote is set for Tuesday.

How bad is it? Even the city's fiscal overseers are broke

The city's oversight board has still not received the state funding it was promised last week.

State officials forgot to add $585,000 in funding for the five-member board in the 2004-05 budget approved in July, and were supposed to fix the glitch by the end of last week.

The money has still not arrived, so the board is supposed to get alternate funding -- to pay its lawyer, executive director and consultants -- from the state Department of Community and Economic Development soon, board chairman William Lieberman said.

The board has not been able to pay its bills since August.

How bad is it? Ahhh-nold has become a political role model

State Sen. Vincent Fumo says he's sorry for using a gay slur in an argument with Republicans on the Senate floor the other night. He wishes he'd called them a different name -- one popularized by the pumped-up governor of California.

Ah, to heck with it, let's go fishing

Anglers competing in next July's CITGO Bassmaster Classic here will have plenty of territory to find just the right spot. Tournament organizers have established boundaries for the competition that include nearly 90 miles on five different rivers.

First published on October 8, 2004 at 12:00 am
Timothy McNulty can be reached at tmcnulty@post-gazette.com or 412-263-1542.
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