posted by Joe Polk at 4:28 PM /
About 80 percent of Pittsburgh's municipalities have had budget deficits at least once between 2000 and 2005, according to a study from the University of Pittsburgh. And nearly 60 percent had two or more deficits, according to the study from the University of Pittsburgh Graduate School of Public and International Affairs.
Among the findings of the report were that municipalities traditionally thought of as economically sturdy, such as Mount Lebanon and Fox Chapel, had multiple deficits. Fox Chapel had deficits in four years, while Mount Lebanon was six-for-six.
Link: www.bizjournals.com/pittsburgh/stories/2008/02/25/daily45.html
Link 2: www.pittsburghtoday.org
Link 3: www.alleghenyinstitute.org/blog/2008/02/predictable-wrong-prescription-for.php
Among the findings of the report were that municipalities traditionally thought of as economically sturdy, such as Mount Lebanon and Fox Chapel, had multiple deficits. Fox Chapel had deficits in four years, while Mount Lebanon was six-for-six.
Link: www.bizjournals.com/pittsburgh/stories/2008/02/25/daily45.html
Link 2: www.pittsburghtoday.org
Link 3: www.alleghenyinstitute.org/blog/2008/02/predictable-wrong-prescription-for.php
Labels: budget, deficit, municipality
2 Comments:
I don't get this and there is not enough detail provided to develop even a simple understanding.
For the Municipality, I did look at MTL's annual financial reports and the "General Fund" in particular. For the period 2002-2006, General Fund expenses grew at a compounded annual growth rate (CAGR) of 4.2%. Revenue outpaced expenses and grew 5.1% (CAGR). For comparison, the Consumer Price Index grew 2.9% for the same period.
Down the road at the School District, for slightly broader period (2000-2006), noncapital expenditures grew 4.7% (CAGR), also handsomely outpacing the CPI.
Expenses are growing and revenues (taxes) are growing as fast or faster. I don’t see the deficit.
Following up on my post above, I recalled I previously looked at the MTLSD noncapital expenditures from 2000 through 2007 school years on a per student basis. Details below:
School Year ending June 30, 2000
Total Noncapital Expenditures: $47,391,799
Enrollment: 5,725
Noncapital Expenditures per student: $8,274
School Year ending June 30, 2007
Total Noncapital Expenditures: $64,118,450
Enrollment: 5,436
Noncapital Expenditures per student: $11,795
(Source MTLSD Annual Financial Reports)
The compounded annual growth rate for MTLSD noncapital expenditures for this period was 5.2%.
Comparing this to the Consumer Price Index (CPI):
CPI on 06/30/00: 172.40
CPI on 06/30/07: 208.35
Compound annual growth rate of CPI for this same 7 year period: 2.74%
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