Oversight board reapproves Pittsburgh's 2012 budget
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A state oversight board reapproved the city's 2012 budget Tuesday, ending a monthlong dispute and clearing the way for an $80 million bond issue that Mayor Luke Ravenstahl has proposed for two years of capital spending.
The Intergovernmental Cooperation Authority last month rescinded the city budget and five-year spending plan, saying the city hadn't followed through with conditions the overseers imposed last fall.
Those conditions included strengthening the capital budget process and establishing a trust fund for retiree health benefits. Earlier this month, the authority said the city also needed to secure contributions from nonprofit groups that enjoy real estate tax exemptions.
The authority said the city could not borrow the $80 million until its concerns were addressed and the budget reapproved; the city disagreed. Nonetheless, city council and Mr. Ravenstahl's office began taking steps to address the concerns.
Overseers and Mr. Ravenstahl's aides met Friday to work through their differences. The same day, Mr. Ravenstahl sent authority Chairwoman Barbara McNees a letter noting that legislation to establish the trust fund had been introduced in council Jan. 17 and that efforts to secure nonprofit contributions were under way.
The letter also pointed out that council had overhauled the capital budget process in 2010. Mr. Ravenstahl did not note that additional efforts were in the works.
On Tuesday, Councilman Ricky Burgess introduced legislation with additional refinements, such as a committee to help prioritize capital projects and make sure that work is performed. The committee would be made up of city officials and community representatives.
"It will put a little more detail into how the capital budget is constructed," Mr. Burgess said of the legislation.
The authority acknowledged the city's efforts Tuesday in a two-paragraph letter delivered to Mr. Ravenstahl's office by messenger.
"We do now consider the 2012 budget and five-year plan accepted and approved," the letter from Ms. McNees said. Neither she nor Henry Sciortino, ICA executive director, could be reached for comment.
Despite the authority's warning not to proceed with the borrowing until its budget concerns were resolved, council last week gave the bond issue preliminary approval. On Tuesday, instead of taking a final vote, council recommitted the bond legislation for further discussion at today's standing committee meeting.
First Published January 25, 2012 12:00 am
