The last deal that was cut, at the state level, is with the letting of the $50-million gambling casinos. That deal NEVER expires. That blunder is something I tried to prevent.
To sunset deals and legislation is generally wise.
To trust those who have broken the city to fix it -- in perpetuity -- is foolish at best.
City council wants more from nonprofits - PittsburghLIVE.com Council President Gene Ricciardi wants to make the charities' donations to the city a very long-term obligation.
'I believe it should be in perpetuity,' Ricciardi said. 'It should not expire in three years. If the nonprofits don't agree to that, then we need to go in another direction.'
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City council wants more from nonprofits
By Jeremy Boren
TRIBUNE-REVIEW
Friday, August 26, 2005
Pittsburgh City Council could be headed for a scuffle with a group of nonprofits ready to give millions to the financially troubled city over the next three years.
Council President Gene Ricciardi wants to make the charities' donations to the city a very long-term obligation.
"I believe it should be in perpetuity," Ricciardi said. "It should not expire in three years. If the nonprofits don't agree to that, then we need to go in another direction."
Under a tentative deal between Mayor Tom Murphy and an umbrella group of city nonprofits called the Pittsburgh Public Service Fund, the charities have agreed, in principle, to collect and contribute money to Pittsburgh's $417.5 million operating budget. That deal would last for three years.
City and nonprofit officials estimate the fund could provide as much as $5 million a year for the city, although the initial agreement doesn't guarantee any money. And it contains a clause that could end more than $600,000 in payments in lieu of property taxes that nonprofits currently pay to the city.
Ricciardi's amendment would extend the length of the agreement to 100 years. If that doesn't work, he'll propose an amendment to end nonprofit organizations' tax-exempt status on future property purchases.
Ricciardi said he will ask to waive council rules Tuesday so members can discuss the unofficial agreement at Wednesday's regular meeting.
The Rev. Ron Lengwin, spokesman for Pittsburgh Public Service Fund, said extending the nonprofits' contributions beyond three years is unacceptable.
"No, absolutely not," said Lengwin, who is also spokesman for the Pittsburgh Catholic Diocese. "We've said three years from the very beginning. We had to fight to get three years because some thought it should be one year. The thinking was that after three years, the city certainly should be able to recover, especially with an overseer."
Councilman Jim Motznik said he'll support Ricciardi's amendment, even if it scuttles the deal this year. He expects other council members to agree.
Ricciardi and Motznik said the nonprofits must pay their "fair share" because they benefit from the city's infrastructure, population base and location. "Sooner or later they're going to get that," Motznik said. "If that means we have to fight over it, we'll fight over it."
Murphy spokesman Craig Kwiecinski said the mayor's office is eager to discuss the agreement next week.
Pittsburgh was declared a distressed municipality by the state in 2003. It is currently operating under a state-approved financial recovery plan designed to restore it to solvency in five years.
Jeremy Boren can be reached at jboren@tribweb.com or (412) 320-7987.
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