HARRISBURG -- Allegheny County Council members on Wednesday lobbied state senators for funding solutions to avoid levying about $30 million in taxes next week for mass transit.
They acknowledged that chances of a solution are slim before their Dec. 6 deadline for approving a budget. To help fund cash-strapped Port Authority of Allegheny County, the council is expected to vote on two new taxes -- a levy of up to 10 percent on poured alcoholic drinks and a $2 daily surcharge on rental cars.
"We're looking for avenues, any way, really, that we don't have to pass a drink tax or rental car tax," said Councilman John DeFazio, D-Shaler.
In talks with lawmakers, the five council members focused on getting tax-exempt nonprofits in the county to contribute. That could mean lawmakers assisting in obtaining payments from nonprofits, establishing a formula for contributions or possibly passing legislation requiring payments, the council members said.
About $15.3 billion of property -- roughly one-fifth the value of all property in the county -- is tax-exempt, according to county data. The largest chunk -- worth about $2.3 billion -- belongs to the county government. The University of Pittsburgh and UPMC together own more than $1 billion worth of untaxed property.
"If (nonprofits) are not willing to talk with us or entertain that possibility, that forces us to look at other alternatives" such as legislation requiring nonprofit contributions, said Councilman Jim Burn, D-Millvale.
"We're not saber-rattling," Burn said.
"It's about having a tax policy in Allegheny County that makes sense," said Council President Rich Fitzgerald, D-Squirrel Hill.
State Sen. Wayne Fontana, D-Brookline, said senators are "certainly receptive" to pursuing a solution with nonprofits. Fontana said he is open to working on legislation if that is needed. "It's a matter of fairness," he said.
DeFazio said council members are cognizant of the important roles of nonprofits, such as hospitals and universities. "We're not trying to kill the goose that laid the golden egg," he said.
Council members said they weren't trying to spread the political liability for the tax vote to state lawmakers. "At the end of the day, we're willing to take the tough vote. We're looking at all options," DeFazio said.
The options
Allegheny County Council has considered at least 10 proposals for the 2008 budget, including Chief Executive Dan Onorato's $727 million spending plan. Options on the table:
Enact 10 percent poured drink tax and $2-a-day rental car tax, and maintain millage rate
Supporters: Onorato, Allegheny Conference on Community Development
Opponents: Restaurateurs, rental car agencies, North Side/North Shore Chamber of Commerce
What it means: Consumers help fund Port Authority and plug $30 million budget hole
Status: Council members could vote Thursday to advance it for full council vote Dec. 4
Increase county property tax by 12 percent
Supporter: Outgoing Councilman William Lestitian, who introduced the measure but will not vote on it
Opponent: Onorato, who pledged to veto any budget that increases property taxes
What it means: The owner of a home assessed at $100,000 would spend $58 more next year on property taxes
Status: Up for full council vote Dec. 4
Extend 2007 budget into 2008 until a better solution is found
Supporter: Councilman William Robinson, budget and finance committee chairman
Opponent: Onorato, who says the idea is illegal
What it means: County misses Dec. 6 budget deadline
Status: Council members could vote Thursday to advance it for full council vote Dec. 4
Cut budget or further cut county jobs
Supporter: Outgoing Councilwoman Susan Caldwell has sought a 5 percent cut in all department budgets
Opponent: Unknown
What it means: If new taxes or a property tax increase fail, council might need to address this
Status: Legislation does not exist
Sources: County Council; Jennifer Liptak, council's budget director; Kevin Evanto, spokesman for Onorato
Larger text
Smaller text
Print this article
E-mail this article
