Mayor Peduto: Pittsburgh will feel financial effects of pandemic for 5 years

The City of Pittsburgh is likely to feel the economic effects of the coronavirus for the next five years, Mayor Bill Peduto said in a speech Thursday.

He called the city’s financial picture “bleak” and said there will be a budget shortfall of tens of millions of dollars this year, even taking the city’s $85 million in reserves into account.

“Years of city planning on resiliency going back to 2014 greatly helped us to prepare for the economic and public health shocks we’re experiencing now,” Peduto said. “But nothing fully prepared us for this. At no point will the need be greater for major nonprofits, foundations and the corporate community to come together collectively to guarantee a Pittsburgh For All.”

Peduto warned of a budget deficit in March, attributing the shortfall to a decline in tax revenue as businesses shut down because of the pandemic.

In January, Pittsburgh’s 2020 operating budget projected a balanced $608 million in expenses and revenues, with $85.8 million in reserve.

It has been one month since the City of Pittsburgh declared a state of emergency, which prohibited public gatherings and restricted utility shutoffs, and canceled the city’s beloved St. Patrick’s Day parade.

Since March 14, when the first case in Allegheny County was reported, more than 10,000 county residents have been tested and 925 tested positive for the virus, according to data released Thursday.

That does not include 38 residents who have died from the virus.

A heat map on the Allegheny County Health Department website shows where people diagnosed with the coronavirus live, including a breakdown by city neighborhood.

In his speech, Peduto encouraged residents to stay resilient in their efforts to slow the spread of the coronavirus.

“It hasn’t been easy but it has saved lives, and it’s no time to stop now,” he said.

Peduto struck a hopeful tone as he looked ahead to reopening swimming pools this summer and restarting summer youth employment programs.

He noted some programs that started before the covid-19 outbreak, like wider distribution of the opioid overdose treatment drug naloxone, have continued despite the pandemic.

He also thanked first responders, health care workers and front-line workers for their service.

“Our work couldn’t be done without the support of private employees throughout the Pittsburgh area,” Peduto said. “That includes people working in warehouses, trucking, grocery and convenience stores, those cleaning buildings and hospitals, nurses, doctors, hospital workers, bus drivers, pharmacists, restaurant workers and so many more.”