Pittsburgh Mayor Bill Peduto began his reality TV career on “Undercover Boss.” But on Friday, controversy surrounding his appearance on the show resembled an outtake of "Dance Moms."
The mayor’s office on Friday released a list of contributors who supported his recent appearance on the network television program — and a scathing response to an announcement by the Allegheny County controller earlier in the day saying she would withhold nearly $682,000 in taxpayer funds from a nonprofit tourism agency that's among the donors.
Mr. Peduto has asked that organization, VisitPittsburgh, to contribute a total of $50,000 to the $155,000 he pledged to help four needy workers whose stories were told on the CBS show.
County Controller Chelsa Wagner said in a news release Friday morning that she ''remain[s] concerned regarding the representation that no public money would be used.
"VisitPittsburgh runs on public money. Moreover, there remains a lack of transparency regarding VisitPittsburgh’s commitment of these funds," she said in the release. The organization’s budget is funded largely by taxpayers.
In a searing response released Friday afternoon, mayoral spokesman Tim McNulty said her announcement "is empty of facts, threatens city workers, and undermines what integrity is left in her office” and that she has no authority to withhold county tax revenue.
In a later interview, Mr. McNulty said the mayor has said all along that no “city” money would be used, and a statement from the city directly after the show aired made that assertion. But during the Dec. 21 broadcast, Mr. Peduto said: "... [T]he reality of it is, I'm not a corporate CEO with a billion dollars to be able to give away. In fact, I can't even use taxpayer dollars. I had to pick up a phone and raise money from friends in order to be able to help the employees that I met this past week."
Ms. Wagner, who maintained it was within her purview to withhold the funds, said it was her understanding that no public money would be used.
She said VisitPittsburgh receives more than a quarter of the county's 7 percent hotel tax collection and has an $11 million budget. In 2014, $8.4 million of which came from taxpayers, not including the $681,744.
VisitPittsburgh CEO Craig T. Davis said the organization’s funds for an initial $25,000 it has pledged to contribute 'came from its general fund account, which is made up of private donations and public dollars.
"We are very confident that the business decision that we made was the right decision," he said.
The board plans to vote on Mr. Peduto’s request for another $25,000 at its meeting next month. Ms. Wagner and VisitPittsburgh officials plan to meet Friday.
By late afternoon, things just got weird. Mr. Peduto assumed the role of his “Undercover Boss” alter-ego, Ed Chadwick, in a press release from his office written in the form of a letter to “all my new friends in Pittsburgh.”
“Thank you for your hospitality and kindness during my time in your wonderful city this fall. I can’t say that I made the best carpenter, or garbageman, or forester, or social worker, but I can say that I still had a great experience that will stick with me for a lifetime. ... And thanks too to the friends who stepped forward with funding to help honor their public service, and your city,” the release stated.
The donations listed earlier Friday by the mayor’s office were: $25,000 from VisitPittsburgh, with another $25,000 subject to board action; $25,000 each from PNC and Sewickley steel processing and distribution company Esmark; $20,000 from First National Bank; $10,000 each from the International Brotherhood of Electrical Workers Local 5, Highmark and UPMC and $2,500 each from Eat’n Park and Northampton County-based Weyerbacher Brewery.
Since last year, the Peduto administration has been negotiating with Highmark and UPMC as part of an effort to get nonprofits to contribute more to the city's financial well-being, even if not through direct payments into city coffers. Last July, Mr. Peduto dropped a lawsuit challenging UPMC's tax-exempt status filed by his predecessor, Luke Ravenstahl. The administration characterized the move as an effort to advance those discussions.
“They are major stakeholders in the city,” Mr. McNulty said of UPMC and Highmark on Friday, “and it’s appropriate that they could contribute to this effort.”
First Published: January 23, 2015, 5:07 p.m.
Updated: January 24, 2015, 4:48 a.m.
