Mayor wants students to pay 'fair share'
Pittsburgh Mayor Luke Ravenstahl on Monday detailed a 1 percent tax on college tuition to plug a $15 million hole in the city's budget.
The Fair Share Tax is expected to generate $16 million, which would finance a shortfall in the city's pension fund and provide $1 million in sustained annual revenue for the Carnegie Library of Pittsburgh.
"We value Pittsburgh's nonprofit community. They are our major employers and a big part of why our economy continues to be strong," Ravenstahl said. "However, we can no longer afford to provide city services to those who are not paying their fair share."
Ravenstahl announced the tax as he proposed a $452 million budget to City Council. The $15 million, combined with an estimated $200 million from leasing the city's parking garages, would put the city's pension fund back on sound footing and keep it from state oversight. Gov. Ed Rendell declared Pittsburgh a financially distressed city in 2003.
The proposed education privilege tax would be paid annually to post-secondary schools by part-time and full-time students who attend school in the city, including colleges, universities, art, business, culinary and trade schools. The schools would hand the money over to the city. It would affect students at more than 30 institutions.
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