April 14--Pittsburgh firefighters have sued the city and state, claiming Gov. Tom Corbett overstepped his authority by keeping the city under state financial oversight for five more years.
The suit filed Friday asks Pennsylvania's Commonwealth Court to reverse the decision announced by Corbett last month. It names state Department of Community and Economic Development Secretary C. Alan Walker, Corbett and Peduto as defendants.
Pittsburgh since 2004 has operated as a financially distressed municipality under a financial oversight program governed by state Act 47. Two five-year recovery plans have allowed the city to reduce the size of its workforce, earn a higher bond rating and increase its pension fund reserves beyond 60 percent of their obligations.
Last year, then-Mayor Luke Ravenstahl cited the city's economic gains in requesting that Pittsburgh be released from oversight. Act 47 coordinators, who oversee Pittsburgh budgets, agreed and requested that the state release the city.
Mayor Bill Peduto, then a councilman, opposed the request, saying more than $600 million in employee pension liabilities, $500 million in debt and neglected infrastructure needs continued to sap city finances. He said a new five-year financial plan would bring permanent stability, calling continued oversight a critical component for economic recovery.
Citing the Act. 47 coordinators' request, Joe King, president of International Association of Fire Fighters Local No. 1, suggested that Corbett made a political decision at Peduto's request to maintain oversight.
He has said Pittsburgh is using Act 47 as "a sword" to limit union gains during collective bargaining. Act 47 means an arbitrator must consider the city's ability to pay in any collective bargaining agreements.
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