PITTSBURGH -- For the past few years, the city has been in a money crunch, which has forced cuts in the police and fire bureaus and mergers of some Pittsburgh and Allegheny County services.

Has it been enough to stave off more financial problems in the future?

For all the credit the Act 47 recovery team gives Pittsburgh for cuts dating back to 2004, there are warnings of trouble less than three years down the line from now.

The Act 47 team predicts that the city is less than three years away from returning to budget deficits and warns of a $6.6 million deficit in 2010 and $18.1 million deficit in 2011.

Councilman Bill Peduto questioned whether a budget shortfall could come as soon as next year. He noted that the city is being told by its overseers to count on slots revenue its not yet seen, future donations from nonprofits that don't want to give the city more and a state grant that's less than promised.

"We're saying we're going to have a surplus of six," said Peduto. "We're not going to have a surplus of six, we're going to have a deficit of 14 next year. There's a crisis."

The Act 47 team's report to Council said the city's obligations are going to outstrip its revenues in a few years.

It said spending continues to grow faster than revenues, citing old debt, pension bonds and retiree benefits as major reasons.

"We share your concerns on the revenue side," said Jim Roberts of the Act 47 team. "Again, most of the issues that you've raised have a resolution only on the state level."

The state Legislature is forcing Pittsburgh to eliminate its business privilege tax and lower its parking tax over the next few years.

One third of Pittsburgh's revenue comes from property taxes. City property tax revenues, flat since 2002, are not expected to grow.