Your Daily Guide

Will the Feds Come for Gainey?

Lying about a city's financial health in official bond documents is a federal crime. It's one of many accusations against Pittsburgh officials under former Mayor Ed Gainey in a search warrant unsealed this week. No local charges have been filed, but some experts wonder whether the Securities and Exchange Commission may jump into the fray.

Here’s what you need to know:

• Bonds are like loans for cities. Pittsburgh takes one out when we need to pay for something big, expensive, and likely to outlast the term of the bond. That's why we haven't used bonds to pay for vehicles like ambulances and snow plows; they probably won't still be in use by the time we finish paying them off.
• Lying has consequences. If Pittsburgh gave bond investors materially inaccurate information about our revenue and expenses, it may affect whether we're approved for future bonds and at what price. Even if no investigation follows, it could make it harder to borrow in the future.
• We knew Gainey was a wishful thinker when his administration continued to count the $6 million "jock tax" toward current and future revenue, even after it was ruled unconstitutional. With an annual operating budget over $700 million, that's a small sum. The SEC may decide it's not material and wouldn't have affected our good credit enough to matter. We took out five bonds during Gainey's tenure. But if local whistleblowers or the Allegheny County District Attorney find more evidence of wrongdoing, that opinion could change. Our DA confirmed he's still investigating.
• Federal investigations take years. They can result in fines and — when the Justice Department gets involved, in some circumstances — criminal charges with prison sentences. O’Connor administration officials say they haven’t yet been contacted by the SEC. [City Cast Pittsburgh / 🔒 Post-Gazette]

PIT Named Best Airport of the Year

Citing the newly constructed terminal and increased number of international connections, trade publication Air Transport World once again named PIT Airport of the Year — the only U.S. airport to win twice. Our beloved airport first won the award in 2017. But while the fancy new facilities are airy and inviting, I will always miss the weird tram. [Blue Sky News / KDKA]

• Did you know PIT has its own electric grid and generates power on-site? [City Cast Pittsburgh]

Star Wars Vending Machine Heads West

The (in?)famous Phantom Menace vending machine from Mt. Washington traveled across the country for the grand opening of the Lucas Museum of Narrative Art — a stunt orchestrated by an L.A. influencer. We discuss the drama surrounding the drink dispenser from a galaxy far, far away on today’s pod. [Axios Pittsburgh / City Cast Pittsburgh]

Tesla ‘Cybercabs’ Hit the Streets

While Waymos are the most prominent autonomous vehicles in the city, keep your eyes peeled for golden Tesla cybercabs that residents have started spotting in the streets. PennDOT said the robotaxis still require a human driver. [TribLive]

• Remember when Uber operated self-driving cars here, before pulling the plug in 2020? Karl Marx’s words remain forever relevant: history repeats itself “the first time as tragedy, the second time as farce.” [City Cast Pittsburgh / The Eighteenth Brumaire of Louis Bonaparte]

CDC Acknowledges One Measles Death

The federal agency officially recorded its first measles death of the year, even though Pennsylvania has reported four measles-associated deaths since August. The CDC did not specify where the death occurred or provide additional details. PA has now surpassed 800 measles cases this year — the worst outbreak in the country. [NBC News / 🔒 Post-Gazette]