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Panel Wants More Data on City's Plan to Collect From Nonprofits
Friday, October 16, 2009 11:51 PM


(Source: Pittsburgh Post-Gazette)trackingBy Rich Lord, Pittsburgh Post-Gazette

Oct. 16--Pittsburgh Mayor Luke Ravenstahl has to formalize his plan to collect $15 million from colleges, hospitals and commuters, the state-appointed fiscal overseers said yesterday.

But the five-member panel -- the Intergovernmental Cooperation Authority board -- approved his proposed $452.8 million spending plan for 2010 anyway, on the condition that the city "resubmit the budget in the form that we've asked for," as Chair Barbara McNees put it.

Without setting a clear deadline, the board warned that failure to submit a more detailed budget would lead to "sanctions... including, but not limited to, capture of any and all revenue," or a ban on the issuance of debt.

State law gives the ICA the power to withhold new tax revenue.

The ICA board was most concerned with Mr. Ravenstahl's proposed levies on students and hospital patients. He recently floated a 1 percent tax on tuition and a 0.1 percent tax on hospital bills. The mayor said the city needs the taxes to raise $15 million in new revenue, largely to boost contributions to its ailing pension fund.

The mayor's proposals are "not supported by appropriate legislation," said ICA board Chair Barbara McNees. "We need to see the detail, the legislation."

The University of Pittsburgh, University of Pittsburgh Medical Center, and West Penn Allegheny Health System have issued statements opposing the mayor's proposed taxes.

Mr. Ravenstahl has said that increased water rates for educational and medical institutions or a surcharge on all-day parking in public garages also may help fill the $15 million gap.

If the city doesn't first pass legislation describing the taxes, it must exercise a "failsafe option" in the recovery plan council approved in June, she said. That option is described in the plan as "sufficient tax increases to fund the required additional pension contribution."

The ICA also demanded a "fully executed document" merging the city's and Allegheny County's computer systems but did not set a firm deadline for that measure, which the panel has pushed for years. Ms. McNees said the city has made good, recent progress toward buying into a computer system that would be hosted by the county and also could serve related authorities.

Mr. Ravenstahl's spokeswoman could not be reached for comment.

Under the city code, a final, balanced budget must be submitted to City Council in early November and approved by year's end.

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