Debt

Government & Politics
3:30 am
Mon September 1, 2014

How the Rate of Return Affects State Public Pension Debt

The state owes about $50 billion to its two public pension funds, which pay out retirement benefits to state and public school employees.
               
But the debt would be larger if one little figure were adjusted: the rate of return.

It’s what the pension funds assume they’ll make on investments. The higher it is, the less the commonwealth must pay up front for retirement benefits.

The current rate is seven-and-a-half percent, and some economists say it would be more realistic if it were lowered.

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Government & Politics
3:51 pm
Mon June 16, 2014

City Council Hears From Public On Act 47 Amended Plan

Pittsburgh City Council members heard from the public Monday about the third amended recovery plan for the city.

Pittsburgh has been under financial oversight for a decade. The amended plan, aimed at getting the city out of Act 47 status and closer to financial solvency, sets novel goals: to reduce the city’s deficit and debt burden, maintain the fund balance at an appropriate level, increase pension contributions and spend more on capital construction.

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Government & Politics
1:02 pm
Thu October 17, 2013

PA Lowers Debt Limit, Increases Capital Spending Controls

With a unanimous vote, lawmakers in Harrisburg have taken the unusual step of lowering the state’s ability to borrow money.  The House and Senate approved a bill this week that reduces Pennsylvania’s debt ceiling from $4.05 billion to $3.45 billion. 

“Under Governor Rendell the debt limit was increased five times and we felt we needed to reduce our debt service payments and reduce our overall debt,” said House Majority Leader Mike Turzai (R-Allegheny). 

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Debt Ceiling Debate
3:16 pm
Mon October 14, 2013

Three Days Before Default: Things Get Messy

Congress is working through Columbus Day in hope of reaching a deal on the debt ceiling before the Treasury runs out of money on Thursday.

Over the weekend, Senate Democrats dismissed a compromise proposal by Senators Susan Collins (R-ME) and Joe Manchin (D-W.Va) that would have funded the government through March at current levels, raised the debt limit through Jan. 31, delayed a tax on medical device manufacturers and established income verification for people receiving subsidies to buy health insurance.

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Essential Pittsburgh
3:58 pm
Fri October 4, 2013

An Uncertain Future for the August Wilson Center

The August Wilson Center is in financial trouble as the organization faces a threat of foreclosure.
Credit AWC / Facebook

When it comes to the August Wilson Center's current financial situation, cost and constructions fees caused “substantial debt” from the beginning, says Mark Clayton Southers, a playwright and former producer at the center.

Charlie Humphrey, CEO and Executive Director of Pittsburgh Filmmakers, says a problem the August Wilson Center faces now is that “nobody wants to fund debt” people want “to fund programs.”

Southers agrees that it's hard to fund a sinking ship and adds that some creative solutions are needed to gather enough funds to clear $7 million in debt.

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Essential Pittsburgh
9:00 pm
Fri March 22, 2013

The High Cost of Higher Education

How can an early understanding of personal finance change the face of student debt?
Credit Katz School of Business / University of Pittsburgh

  Student loans are now second to mortgages when it comes to personal debt.  The average PA college student amasses $27,500 worth of debt. As college acceptance letters come in the mail, what do students need to consider when planning for their financial future? University of Pittsburgh Business Professor Jay Sukits joins us to talk about student financial planning and debt.