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December 23, 2009

Pittsburgh Mayor Strikes a Deal to Abandon Tuition Tax

Ian Urbina:

In what he described as a "leap of faith," Mayor Luke Ravenstahl of Pittsburgh agreed on Monday to shelve his plans for the nation's first tax on college tuition in exchange for an increase in voluntary contributions from local colleges and universities to the city.

City officials said the mayor also had a promise from university officials to help lobby state lawmakers in Harrisburg for changes to enable the city to raise certain taxes and fees.

"This is a leap of faith for us all; the future of our city and of our citizens is riding on it," Mr. Ravenstahl said. "But it is a leap of faith that, if successful, will result in the revenue, $15 million annually, that Pittsburgh needs to solve our legacy cost problem."

City and university officials declined to offer details about the commitment, but at a joint news conference on Monday morning, officials from the University of Pittsburgh and Carnegie Mellon University said they had pledged to make larger voluntary donations to the city than they did from 2005 to 2007. In addition, some local corporations, including the insurer Highmark, are contributing additional money.

Posted by Jim Zellmer at December 23, 2009 1:55 AM
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