Controller: Pittsburgh's finances took hit in 2020, but population loss is bigger worry

Tom Davidson, The Tribune-Review, Greensburg
·2 min read

Jun. 30—If the reason the Pittsburgh labor force is shrinking is a decline in the city's population, there's reason to be alarmed, Controller Michael Lamb said Wednesday.

"That's the biggest concern to me," Lamb said during a virtual news conference when he released the 2020 Popular Annual Financial Report.

The report affirms the state of the city's finances for last year.

It contains no surprises: The city ended the year with a $50.4 million general fund deficit and its reserves shrunk from $133 million in 2019 to $85.4 million in 2020.

The decrease in parking and amusement tax revenues because of the coronavirus pandemic are the reasons for the decline and the city's future financial outlook remains stable, Lamb said.

But the main driver of the city's finances is its tax revenue, which is funded by the people who live and work in Pittsburgh. That is the reason Lamb said he's concerned about continuing declines in the region's workforce.

The latest jobs numbers from the seven-county Pittsburgh region revealed a loss of 10,700 workers in May. It is also 31,000 below the numbers from May 2020.

There's a multitude of potential reasons, including the pandemic, for the drop, Lamb said.

If it's an indication the city's population is declining, it's cause for alarm, he said.

"The key to financial success is population," Lamb said.

If the city's population, estimated in 2018 at 302,205, drops below the 300,000 mark when census numbers are released, it will be a sign of a larger problem, he said.

This is the 12th year the controller's office has release the report. It can be found here.

"My office is committed to making city government more accessible to residents. We use the PAFR to help increase awareness of Pittsburgh's government and financial health," he said.

Lamb's office is also prepared to be a watchdog over the $335 million in federal American Rescue Plan dollars the city is set to receive and will audit the spending.

"We will continue to work with various city departments, the administration and council to make sure there are adequate controls," he said.

Lamb questions outgoing Mayor Peduto's federal relief proposal

Tom Davidson is a Tribune-Review staff writer. You can contact Tom at 724-226-4715, tdavidson@triblive.com or via Twitter .