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Pittsburgh Council delays tuition tax vote again
Wednesday, December 09, 2009

Pittsburgh City Council opted today for the second straight week to postpone a first vote on a controversial tuition tax proposal, in the hope that conversations between universities and officials would result in an alternative to the levy.

That happened after an unusual debate in which some foes of the tax conceded they didn't have the votes to defeat it, but pushed for a prompt vote anyway.

Members who have said they will vote for the tax prevailed in their effort to delay that action.

"Maybe, working together, we can come up with a solution so the kids won't be in the middle of the situation," said Councilwoman Theresa Smith, who had arranged a meeting Friday between council members and two university presidents that both sides called "productive."

"We don't want to actually see ourselves in a position where we're actually taxing the students, or we were leaving the city in a financial lurch," said Councilwoman Tonya Payne.

Three council members who oppose the tax urged a prompt up-or-down vote, hoping it would be killed and that could pave the way for better negotiations with the universities.

"The city doesn't have the leverage, the mayor doesn't have the leverage, to pull off what you're trying to do," said Council President Doug Shields. "By deferring the vote, you simply are conceding the weakness of the argument."

The tally to postpone the vote was 5-3, with Mr. Shields, Bruce Kraus and William Peduto, all tuition tax opponents, voting against the delay. The other tax foe, Patrick Dowd, voted for the delay.

Councilman Ricky Burgess introduced an amendment that would postpone the implementation of the tax until July 1, to give the city and universities six months next year to negotiate agreements for payments in lieu of taxes. If a deal can't be reached by then, he said, "It will be that the universities have refused to share their great wealth, and their great resources, with this great city."

The amendment did not come up for a vote.

Mayor Luke Ravenstahl proposed the tuition tax on Nov. 9 in an effort to raise $15 million to replenish the city's struggling pension fund. He has since said that he is open to alternatives.

Yesterday three state senators called for a deal in which tax-exempt institutions pay the city $6 million a year in voluntary, but predictable contributions. Another official, state Rep. Paul Costa, D-Wilkiins, has introduced legislation to ban tuition taxes. The Pennsylvania League of Cities and Municipalities this week endorsed the concept of tuition taxes for all cities and towns that want them.

Rich Lord can be reached at rlord@post-gazette.com or 412-263-1542.
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First published on December 9, 2009 at 1:50 pm