Republican mayoral candidate Mark DeSantis challenged Mayor Luke Ravenstahl today to immediately veto city council's bill to freeze the city's parking tax rather than reduce it as required by state law.
In a news conference outside a city parking authority garage, Mr. DeSantis said it was "irresponsible" for the city to try to go against the financial bailout plan approved by a state oversight committee. In exchange for allowing increased taxes in other areas, the city agreed to reduce the parking tax from 45 percent to 40 percent next year and eventually to 35 percent.
Councilman Jim Motznik pushed council to approve freezing the tax at 40 percent and earmarking the money collected by keeping it at that rate to be used for paying down the city's debt service and pension shortfall. He said that should be done because parking lot operators, including the city's own parking authority, failed to reduce rates when the tax went down by 5 percentage points this year.
Mr. Ravenstahl plans to meet with legislative leaders in Harrisburg next week before deciding whether to sign the bill, veto it or allow it to become law without his signature.
The issue "has created the opportunity for the city of Pittsburgh to talk about our financial condition," he said. He'll tell legislators that the city has "done what we were asked to do" by cutting costs and building a $90 million savings account but faces looming pension and debt problems and potential deficits several years from now.
He said the revenue the city would get by keeping the parking tax at 45 percent "could significantly help our pension problems, could significantly help our debt problems."
But he acknowledged that state law supersedes city ordinances.
"We understand that there's a state law in place that requires us to go to 40 percent next year," he said. "I'm not somebody who is going to violate state law. . . . It is not my intent, and I will not have this issue become a divisive issue between the city of Pittsburgh and our friends in Harrisburg."
Mr. DeSantis said a letter from state Sen. Jane Orie to the oversight board should tell Mr. Ravenstahl the likelihood the state board will allow the tax to be frozen. Ms. Orie asked the oversight board to withhold money collected from other taxes if the city follows through on freezing the parking tax.
"Our fellow citizens have offered us help with our financial situation and now we're going to go back on our word [to reduce the tax]," Mr. DeSantis said. "That's unacceptable."
More details in tomorrow's Pittsburgh Post-Gazette.
