Monday, May 2, 2011

Pittsburgh Comprehensive Annual Report Released

Michael Lamb, City Controller of Pittsburgh released the city's 2010 Comprehensive Annual Financial Report on Monday.

Lamb said that unlike years past, the city finished the year with a deficit of 12.5 million dollars. He said this is the first time since 2004 that the city saw a deficit as a result of total government expenditures outpacing revenue.

He said that for years he has been saying that this will happen. He said there are three primary reasons the city's budget has a deficit. "Long term debt, fringe benefits and pension obligations," he said, "If you look at 2010 you can see that 56 percent of all the expenditures the city had were in those three categories."

Fringe benefits which include health insurance and workers comp are currently spread city-wide. Lamb says this is not sustainable.

Lamb said total expenditures increased by 61 million to 589 million, partly because the city gave the pension fund 56.4 million.

He added that the city is likely to run out of funds.

Lamb also mentioned the downturn in the global economy, population loss in city limits and said gaming revenue would offset some of the city's finances in the following year.

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