PITTSBURGH -- Mayor Tom Murphy signed a bill Wednesday authorizing Pittsburgh's Act 47 financial recovery plan that will mean substantial cuts for city workers.
Murphy signed the bill in private. City Council President Gene Ricciardi held a public ceremony to sign the bill.
"We believe we are putting the city to fiscal recovery," Ricciardi said. "We will have our house in order and once again be the hub of this great region."
Council voted 5-4 Tuesday to approve the plan, which cuts spending by $33 million and raises taxes by $41 million to erase the city's projected budget deficit next year.
Under Act 47, the state's distressed municipalities law, the city's labor contracts are all subject to renegotiation. That includes a 17 percent wage cut for firefighters in 2005, with 168 firefighter jobs cut by 2006.
Firefighters union president Joe King said as many as 300 senior firefighters could retire by the end of 2005 rather than be part of a new contract under Act 47 rules.
The recovery plan also calls for a two-year wage freeze for city employees and a 15 percent personnel cut across all departments.
The city would also increase its annual occupation tax from $10 to $145 and institute a new payroll tax on for-profit companies. The state Legislature must approve those taxes before they take effect.
Copyright 2005 by ThePittsburghChannel. All rights reserved. This material may not be
published, broadcast, rewritten or redistributed. The Associated Press contributed to this report.
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