New fund makes city rely on charity of nonprofits - PittsburghLIVE.com

New fund makes city rely on charity of nonprofits - PittsburghLIVE.com: "New fund makes city rely on charity of nonprofits


By Jeremy Boren and Bill Zlatos
TRIBUNE-REVIEW
Saturday, August 20, 2005

Pittsburgh has reached a tentative deal with an umbrella group of nonprofits -- including churches and struggling arts organizations -- to help the city out of its financial hole.

Mayor Tom Murphy signed a preliminary three-year agreement Aug. 5 with the newly formed Pittsburgh Public Service Fund, which makes few cash guarantees and is cloaked in secrecy.

The service fund signed the agreement Thursday. The agreement still needs the approval of City Council, which won't be able to vote on the deal until after it returns from recess Aug. 30.

Pittsburgh is so desperate for cash that it built $6 million in contributions from nonprofit groups into its $417.5 million budget for 2005. The nonprofits' expected contribution since has been reduced to $5 million."