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Administration May 10, 2010
Pittsburgh Could See Pension Funding Tax Levy
May 10, 2010 (PLANSPONSOR.com) – Pittsburgh Mayor Luke Ravenstahl is proposing that those working in the Western Pennsylvania city should be forced to pay a 0.3% income tax to generate new revenue for the city's pension fund.
Reported by Fred Schneyer
An Associated Press news report said the city has about a third of the money it needs to pay almost $1 billion in pension obligations.
Ravenstahl said the tax would replace a flat $52 municipal services tax levy on everybody who works in the city. The state Legislature would have to approve the tax.
According to the news report, Ravenstahl credited the idea for a pension income tax to a committee of university officials, business leaders, and state lawmakers he formed to address the city’s pension obligations.
Ravenstahl says city services will be cut next year unless the Legislature approves a way for the city to raise $15 million a year to bolster the pension fund.