(Source: Pittsburgh Post-Gazette)

By 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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