Pittsburgh Mayor Luke Ravenstahl said today that the University of Pittsburgh Medical Center's decision not to ask for credit against future taxes for its contributions to the Pittsburgh Promise clears the way for aggressive fund raising for the college tuition program.

"We can move on and reaffirm UPMC's commitment to the Promise, and continue on with our discussions," he said. "The larger discussions with foundations, corporate, et cetera, have begun and are well underway. . . . Those will continue, and we're optimistic that Pittsburgh will step up to the plate."

The Promise's future was in doubt due to City Council concerns with a proposed provision that would have allowed UPMC to take "credit" for part of its $100 million commitment to the college aid program for public school students if the state or courts alter its tax-exempt status.

With UPMC's critical grant in doubt, efforts to raise $135 million in matching funds over 10 years were tainted with uncertainty.

Now the mayor, schools Superintendent Mark Roosevelt, and the Pittsburgh Foundation can continue raising that money for a Promise endowment.

"Once Pittsburgh has an opportunity to realize the potential from this program, we'll rise up to the occasion," said Mr. Ravenstahl. "It's Pittsburgh's responsibility to now follow UPMC's lead."

UPMC's decision followed a week of holiday season negotiations that even included a conference call just five minutes before Mr. Ravenstahl's inauguration began on Dec. 20.

Late yesterday, agreement emerged to drop the "tax credit" request. Asked whether the city had to make some kind of agreement or concession to get that agreement, Mr. Ravenstahl said, "No, nothing.

"The decision was arrived at because it was too important of a program to let it become as controversial as it has," he said. "The value of the program, the future of the program, was more important than any discussion we were having."

UPMC agreed to continue its $1.5 million annual contribution to the city's coffers in lieu of taxes through next year but not necessarily beyond that.

Will the health system give directly to the city after that? "It's hard to say right now, it really is," Mr. Ravenstahl said. "But we're grateful for their commitment for next year, and we'll deal with 2009 when it arises. I'm still cautiously optimistic that we'll meet our goals in terms of our budgetary line item from the nonprofit community."

The city's long-term plan counts on around $4.2 million a year in voluntary contributions from tax-exempt groups.

Meanwhile, City Council members today lauded UPMC's move.

"I'm very pleased that we will have the Pittsburgh Promise without special tax consideration," said Councilwoman Darlene Harris, a former Pittsburgh Public Schools board member.

"It's wonderful news. I think it helps to make the Pittsburgh Promise the Pittsburgh guarantee," said Councilman William Peduto, who had criticized a proposed "tax credit" arrangement submitted to council by Mayor Luke Ravenstahl's administration. "It's unfortunate that it was presented the way it was, but I think UPMC has taken the higher ground, even at some cost to itself."

Councilman Len Bodack had said he wanted UPMC to extend tuition aid to city students in private schools in return for the tax credit. "I would like to see something broader for all of the city kids, instead of one piece of the city kids," he said today. But he noted that since UPMC isn't asking for any special tax consideration, council has no leverage to demand that.

More details in tomorrow's Pittsburgh Post-Gazette.