After a fiscal record-keeping scandal prompted a board shakeup and reforms of Pittsburgh’s state-appointed financial oversight board earlier this year, the Intergovernmental Cooperation Authority and the city are now close to settling a lawsuit to release $18 million in withheld tax revenue to Pittsburgh's pension funds.
“(ICA board members) still have to vote on Tuesday, but that agreement will release all the money that the city is owed," said Pittsburgh Mayor Bill Peduto.
The ICA released roughly $2 million in gaming funds earlier this year after withholding two years' worth of $10 million annual payments in tax revenue garnered from gambling at Rivers Casino.
Pittsburgh mayor Bill Peduto said if it's approved, the deal would signal a fresh start between the city and the ICA, which was founded in 2004 as part of Pennsylvania's Act 47 financial oversight of city budgeting.
“We’ll be able to start to work together without lawsuits to be able to get Pittsburgh out of Act 47, which is something that’s doable within the next three years,” Peduto said.
Peduto said the deal announced Wednesday also includes provisions for both the city and the ICA to publish online all public documents related to Pittsburgh’s 12-year-old state financial oversight board.