Oversight board rejects Pittsburgh city budget proposal

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November 17, 2009

Anonymous The Tribune-Democrat Tue Nov 17, 2009, 12:43 PM EST

PITTSBURGH — The state agency that oversees Pittsburgh’s finances has rejected the mayor’s $453.8 million budget, which would have taxed college tuition.

The Intergovernmental Cooperation Authority said Tuesday that the tax didn’t comply with state law.

Luke Ravenstahl wanted to tax tuition at 1 percent to raise some $16 million. Ravenstahl questioned the authority’s impartiality, saying four of its five members have or had ties to universities.

Ravenstahl said he may ask city council to pass the tax anyway while also considering service cuts or a property tax increase to fill the $15 million budget gap.

The oversight authority was created in 2004 after Pittsburgh was declared financially distressed in December 2003.

A budget must be in place by Dec. 31.

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