PITTSBURGH -- City Council didn't have much of a choice on Tuesday but to pass a painful $417.5 million budget that is finally balanced.

Discussion

Talk About Pittsburgh's Money Crunch

The plan relies on spending cuts and overhauled taxes -- including a $52 occupational privilege tax on anyone who works in Pittsburgh, and a 0.55 percent payroll tax on for-profit businesses in the city.

The new taxes aren't as high as the city had once hoped for, and the cuts are even deeper than first proposed, but council members' final approval of the budget was unanimous.

"If monitored very closely and properly managed, I think we've begun the road to fiscal solvency here in the city of Pittsburgh," council President Gene Ricciardi said.

But some on the council warn that roads may be rougher to ride in 2005.

The cuts left Pittsburgh with no city money budgeted for street repairs and other capital improvements in neighborhoods.

"Things like resurfacing roads, getting new police cars, getting new garbage trucks, getting new dump trucks -- we don't have a cent to do that with next year," Councilman Alan Hertzberg said.

"We're only going to pave four miles of street," Councilman Doug Shields added. "Generally, a good paving program is anywhere between 45 and 50 miles, so that gives you a sense."

Lower-income neighborhoods will qualify for federal community development money to make improvements and repairs.

"It could become very divisive," Ricciardi said. "Those neighborhoods that do not qualify for funds are also the neighborhoods that are paying quite a bit when it comes to taxes."

Councilman Sala Udin worried that the issue of federal money will "pit neighborhoods against neighborhoods in an unnecessary way."