Although Mayor Luke Ravenstahl's drive for a tuition tax came to nothing, the issue over how to get nonprofits to help pay for public services persists.

Because Pittsburgh is not alone among Pennsylvania cities with a high concentration of tax-exempt properties held by universities, hospitals, health insurers, foundations, etc., the right place to craft a fair solution is in the Legislature.

Last week several Democratic senators heard testimony in South Side on a proposal by state Sen. Wayne Fontana, D-Brookline, and Rep. Tim Solobay, D-Canonsburg, for an "essential services fee" on nonprofits that own property in a municipality. The plan would let local governments charge tax-exempt entities $100 for every 1,000 square feet of buildings they own, with the first 5,000 square feet exempt.

That's a reasonable, limited approach, particularly with the exemption for nonprofits with small property holdings, but it is certainly not the only solution. City Controller Michael Lamb believes Pittsburgh should simply extend the business payroll tax to nonprofit employers at a reduced rate of 0.44 percent -- enough, he believes, to generate the $10 million to $15 million a year needed to shore up the city's underfunded pension system.

These and other ideas deserve attention. While tax-exempt institutions are an essential part of the community and contribute to the public good to maintain their nonprofit status, it's hard to reckon why those particularly with six- or seven-figure executive salaries and hundreds of millions of dollars in assets fight every move to capture even a modest level of support.

Private companies can make similar claims to providing employment, investment and quality-of-life to the region, yet they still pay taxes to support the public services that support their enterprises. If average home- owners and everyday businesses can chip in for police protection, fire rescue and road repair, then why shouldn't the sprawling nonprofits that reap so much success from their Pittsburgh home?

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