Act 47 was passed on a 5-4 vote by City Council Tuesday and was designed to cover a $72 million shortfall, the Pittsburgh Post-Gazette reported. The city is waiting for state action on a proposed tax increases totaling $41 million.
Ricciardi, at a signing ceremony, said the measure was important to Pittsburgh's fiscal recovery. Murphy signed his version in private, the newspaper said.
A total of 168 firefighters jobs -- about 20 percent of the current workforce in Pittsburgh -- would be cut and several fire stations would be closed under Act 47. In addition, there would be a two-year wage freeze and healthcare payment increases by city employees.
Union workers have promised to work against any re-election of the council members who voted for Act 47.