State House delays action on pension takeover as talks continue
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HARRISBURG -- House Democratic leaders worked all day today on amendments to controversial House Bill 1828, which would revise statewide municipal pension rules, permit the state to seize Pittsburgh's underfunded pension plan and let Philadelphia increase its sales tax from 7 percent to 8 percent.
House Democrats are trying to mollify leaders of police and fire unions in Pittsburgh and Philadelphia, who claim that a Senate-approved version of the bill would severely limit unions' power in collective bargaining with their cities.
Philadelphia wants -- as soon as possible -- authority to raise its sales tax, in order to erase a city budget deficit. It also wants state permission to delay making payments to the city's municipal pension plan. Pittsburgh Mayor Luke Ravenstahl also wants a change in the Senate-passed bill, giving Pittsburgh two years to bolster its under-funded pension plan rather than having it taken over by the state.
Democratic leaders hope to vote tomorrow on the latest amendments to House Bill 1828. If they are approved, the bill still must go back to the Senate for action, and it's uncertain when the Senate would act.
First Published September 10, 2009 5:53 pm
