Folks:

The "Ricciardi Plan" was tabled by Council on Tuesday.  I have not heard of
anyone who is interested in reintroducing any Bill which would utilize
capital dollars for operating expenses.  There were 3 plans that Council
voted on Tuesday.  The "Ricciardi Plan" which froze ALL capital projects
and increased the parking tax - it was tabled.  The plan sponsored by Twanda
Carlisle and myself - shift crossing guards to school budget, 2% mandatory
across-the-board salary reductions for all city employees, $1 million
reduction in Council/Mayor Neighborhood Needs allocation and $2.5 million
transfer from Pittsburgh Development Fund to operating budget - it was voted
down.  The "Hertzberg" Plan which transfers the Pittsburgh Development Fund
back to the operating budget was supported by a 5-3 vote.

All three of these plans were one-time attempts to buy an additional four
months of city services in order to make long term structural changes.  The
Mayor has stated to the public that all capital projects are being evaluated
and that next years capital budget will be limited to essential road
services (paving, etc), purchase of emergency vehicles and a few core city
functions.  Even if we receive all of the assistance we are seeking from
Harrisburg, there will still be a $30-$40 million deficit that we will have
to address through cutting services and projects or raising additional
taxes.

I believe there is a third way.  The time to completely restructure city
government is upon us.  There will be some difficult decisions, but if we
spread it out far enough the impact will be minimal.  This year I will be
proposing a 4 year plan during the budget hearings.  Before making any
decisions I will hold a public hearing in my Council district and of course
you can always reach me at bill.peduto@city.pittsburgh.pa.us or visit
www.pghtownhall.com to express your ideas.  But for now, there is no plan to
transfer capital dollars to operating expenses - thus preserving Penn Avenue
reconstruction for the time being.

Bill Peduto

Hello All:

Quick update on Council's legislation regarding the budget crisis and capital projects in the city (Penn Ave, Penn Circle, and many others). Yesterday, Tuesday September 2, Council tabled two items of legislation relating to the use of capital budget funds towards the city's operating budget shortfall. As such, everything is still up in the air.

On Tuesday, Sept 9th, council will reintroduce the legislation relating to Penn Ave and capital budget items. The driving assumption is that this legislation, after being reintroduced, would be voted on the following day, Weds Sept 10th. (But possibly they could vote on it the same day though unlikely).

We will keep all of you updated as we learn anything. BGC will be contacting council members in the next few days and we will relay any relevant info. You will be notified if we need to move quickly into action over the rest of the week, early next week.

Thank you for your continued interest and inquiries and most importantly your participation - we had a great turn out at yesterday's council meeting. Ed McCabe spoke eloquently on behalf of the East End Business Stakeholders and several other speakers joined in to let Council know our position.