Sales Tax Not Right for Region
Posted 06-09-1997
An issue that is in the news not only in Westmoreland County but the entire region of
Western Pennsylvania, is the question of should we increase the sales tax by one-half
percent to fund regional projects such as the stadiums in Pittsburgh and future projects
in our county. This issue really involves several levels of government because the
legislature must put the question on the ballot. For it to be implemented, the voters must
pass the new tax through a referendum. It involves county governments because we would be
the level of government that would administer the portion of funds that would be used for
projects in our county. This month I would like to share with you the details of this
proposal as I see them because the real decision of whether the tax becomes a reality,
lies with you.
I have tried to approach this issue from
one angle, not as a supporter or as an opponent, but as an advocate for county government
in the event that voters support the tax. As it was first presented to the Westmoreland
County Commissioners, the tax was to be divided under the following scenario. Allegheny
County would apply 75% of their revenue from this tax to the downtown projects like the
stadiums and convention center. 20% of their revenue would go to other projects in their
county, and 5% would go into a regional fund for projects between counties. The
surrounding nine counties would keep 50% of their revenue send 35% to the downtown
projects and put 15% in a regional fund.
When we met with the Regional Renaissance
Partnership the first thing I said was the ratio was unfair and would never be supported
by the surrounding counties. To their credit the Partnership and their friends in the
legislature revised the ratios in their latest draft of the enabling legislation. Now the
surrounding counties put 75% in the Regional Growth Fund to be used in our own counties
and put 25% toward the downtown projects called the Regional Destination Fund. However,
the 25% Allegheny County puts in the Regional Growth Fund will be spend on other projects
in Allegheny County. So in reality 100% of the revenue raised in Allegheny County will be
spent there.
I have a number of other problems with the
latest draft of the legislation. I oppose them putting a 50% restriction on the use of
Growth Fund money for any one project. The Partnership wants counties to go out and
leverage Growth Fund money to get matching funds. But what if we have a project, important
to the people of our county yet we can only get a 25% match? Does it doom that project?
According to the current legislation it does. Also for us to get our own money back we
must submit a plan to the Authority formed from this legislation to oversee the sales tax
revenue. I don't mind if they want to create an Authority to oversee spending for the
downtown projects, but don't have them associated with the revenue coming back to our
county. The reason they want to oversee our money is so that they can use a portion of it
for their administrative costs. I think the Partnership's Authority overseeing our money
is a problem and I will work to change that policy.
Another problem I have with the current
legislation is the new Authority would be allowed to issue bonds and go in debt. While
this action may create more available funds, the tax is suppose to have a life of only
seven years and the Authority could guarantee its own life way beyond seven years if it
can issue debt. That part of the plan is something else I cannot support.
I've described the situation as it
currently stands. It will continue to evolve because by the time you read this article the
legislature will have had to act or it won't be on the ballot in November. Look for more
information in the future and decide whether you support the sales tax increase or not! |
