Pittsburgh Mayor Tom Murphy predicted the city would have a $12.3 million budget surplus by year's end and declared that Pittsburgh has "turned a corner" financially.
Murphy said he's "cautiously optimistic" the city, which is mired in debt, will see a surplus based on preliminary estimates that show Pittsburgh has collected $2.7 million more in the first quarter than expected and will spend $9.6 million less than budgeted this year. Not everyone shared the mayor's optimism.
Murphy's numbers show spending and revenue for January and February only -- complete quarters are made up of three months of data. He relied on predicted numbers for March, saying the final first-quarter report wouldn't be ready until May 15. When pressed by reporters, the mayor stopped short of labeling the estimated early year savings and surplus as a trend that would hold for the rest of the year. The city budget calls for $417.5 million in spending this year.
David O'Loughlin, a member of the city's financial oversight board pointed out that any guesses based on revenues from January and February would look artificially high since the city collected the $52 emergency services tax from city workers for the first time this year.
Murphy suggested the surplus could be used to rebuild the city's empty "rainy day" fund, help make the city's annual $90 million debt payment, or reduce the parking tax. He rejected complaints from the city's financial oversight board that Pittsburgh has strayed from its spending agreement, particularly by shelling out $1.3 million in firefighter overtime in January and February.
Mayor, with all due respect, I suggest your take your surplus money and buy a clue because you clearly do not have one.
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