Despite surpluses in the last three years and improved credit ratings, Pittsburgh still requires state oversight of its finances, Pennsylvania's top economic development official said Wednesday.

The city must remain a financially distressed municipality until a plan is crafted to handle its debt, retiree health insurance, pension costs and workers' compensation bill, said Dennis Yablonsky, the state's community and economic development secretary.

The city's financial problems include annual debt payments at more than 20 percent of the city's $423.7 million budget, more than $467 million in pension liability, and workers' compensation projected to reach $24.7 million by 2012.

The city sought a declaration of financial distress under Act 47 in 2003. Two overseers monitor the city's spending.

RANKIN — Police in the Pittsburgh suburb of Rankin say they have found a suspected lab where psychedelic mushrooms were being grown.Police say they discovered the operation when they went to a home with an unrelated arrest warrant Wednesday.Police say the suspect's housemates gave police permission to search the residence, and they found a laboratory-type set up and suspected psilocybin, commonly known as "magic mushrooms."The mushrooms will be tested at a crime lab to determine they are illegal psychedelic drugs.But, so far, nobody has been charged in connection with the lab.