Pittsburgh to form commission to decide how to spend $355 million in federal stimulus cash

How will Pittsburgh spend nearly $355 million it is set to receive under the American Rescue Plan?

When the law was signed last month, Mayor Bill Peduto said the infusion of moneyallows the city to avoid the 600 layoffs anticipated under a 2021 budget wracked by the pandemic. In addition, the city can now replenish the $120 million reserve fund it used in 2020 to avoid drastic cuts during the downturn.

Councilman Ricky Burgess introduced legislation Tuesday to create a Pittsburgh Recovery Task Force to oversee distribution of the cash. The legislation was drafted with input and support from Peduto’s office, mayoral spokesman Tim McNulty said.

“We are in full agreement on this structure and have been working in partnership with council from the beginning of this process,” McNulty said.

RELATED: Peduto: Federal relief package will avoid city layoffs, replenish reserve fund

The task force will consist of representatives from the mayor’s office, Burgess, council President Theresa Kail-Smith and Councilman R. Daniel Lavelle, who is chairman of the committee on finance and law.

“A pervasive sense exists that there are ‘Two Pittsburghs’: one that grows more prosperous with each passing day and the other, cut off from opportunity by poverty, structural racism and discrimination,” the legislation states.

It cites the racial and equity issues facing the city and the 2019 declaration by council that racism is a public health crisis in Pittsburgh. The mayor endorsed that declaration at the time.

The task force will “use a racial equity lens” in deciding how to budget and spent the federal allocation, according to the legislation, which is co-sponsored by Burgess and Lavelle. It also will create an “Equity First Spending Plan” to detail how the cash can be used to reduce racial inequities.

This plan is above and beyond the money needed to ensure the city meets the needs of its five-year plan. It includes fully funding the 2021 budget without making $24 million in cuts that would have required laying off about 600 employees and restoring the nearly-exhausted reserve fund.

Investments in community-based violence and crime prevention and intervention programs and other police reforms are among the priorities the legislation seeks to address.

The money may also be used for community and economic development projects in Black neighborhoods and collaborating with leaders in those neighborhoods to come up with ideas for programs that could be funded.

RELATED: How much is your town slated to get from the $1.9 trillion American Rescue Plan?