Muni Pension Fund Managers Urged to Merge

At a gathering of municipal pension fund managers and political leaders Allegheny County Executive Dan Onorato urged them to consider merging their funds. Those mergers could be made on a fund-by-fund basis but Onorato is pushing for a state-run pension plan that would be open to all municipalities. Such a plan would require action in the he state legislature but Onorato says now is the time to act. He says there are more than 3,100 pension funds in the state and most have 10 or fewer enrollees. Nearly all of them are underfunded. Onorato says it is important for lawmakers in Harrisburg to understand that this is not just a big city issue. Huge underfunded liability levels in Pittsburgh and Philadelphia have grabbed most of the headlines and therefore the attention of lawmakers. He says the issue impacts cities and counties of all sizes. The executive says the money saved through consolidation will go a long way to filling the gap between fund levels and liabilities over time. Onorato says it would be optional to enter into the fund but he sees it as a “carrot and a stick” situation. He says if a pension fund is struggling and is looking to the state for help it is very unlikely that a financial bail out will be coming but if the municipality is willing to give up local control it can enter into the larger pool to realize some cost savings and gain long term stability. Onorato says a merged fund could be very powerful. Combined, the municipal funds in the state hold 14 billion dollars in assets. Among those giving financial rather than political advise to those gathered today was Michael Patalsky of Wilshire Associates. He says the most important thing to do it to understand that we are coming out of a “one in one hundred year flood and you should not set up your fund to take advantage of a one in one hundred year flood” because that is behind us. Patalsky says it will be very hard for funds to invest their way out of this situation and most municipalities do not have the money to dump into the funds. The alternative is to try to take the long-term approach.

Officials Discuss Why Merger Is Stalled

Local and state government officials disagree over why a proposed merger of the city of Pittsburgh and Allegheny County has stalled. Fourteen months ago Mayor Luke Ravenstahl and County Executive Dan Onorato called for the consolidation with the other 129 municipalities in the county remaining independent. About 200 people attended a forum in Pittsburgh yesterday to hear why the idea has not moved forward. Onorato said the city and county need the General Assembly to pass legislation allowing for local voters to cast ballots on a merger. Onorato said he would write the bill but state lawmakers don't want him and Ravenstahl doing their jobs. Some state lawmakers told the forum that local officials aren't ready.

The County Will Hold Its First Cyber Town Hall Meeting

County Executive Dan Onorato is taking his town hall meetings to the web. Thursday morning at 8:30 Onorato will turn on the web camera used to broadcast county council meetings and begin to answer questions that have been emailed to askonorato@alleghenycounty.us. The webcast can be found on the county website. Onorato spokesperson Kevin Evanto says the executive expects the webcast to last about 30 minutes but if the questions are rolling in he is ready to go longer. Several questions have already been submitted. The webcast will be archived. Evanto says if the webcast goes well they will schedule more in the future. Two classrooms will be hooked into the webcast. One in the Hill District and in South Fayette.

Onorato and Ravenstahl want Campaign Finance Reform

By the end of the week the Pittsburgh City Council and the Allegheny County Council will both be considering identical campaign finance limits laws. The county executive and the mayor will submit identical bills Thursday. The measure would cap yearly campaign contributions at $4,600 for individuals and $10-thousand for political action committees. However, federal courts have ruled that it is impossible to limit a candidate’s own spending, so if a candidate plans to “self-fund” a campaign, they would have to check a box on their registration form lifting the limits for anyone in that race. Pittsburgh Mayor Luke Ravenstahl says any candidate checking the self-fund box would come under close scrutiny. He says if they were doing it simply to get around the caps or to allow other candidates to get around the caps the public would be able to see through the rouse. County Executive Dan Onorato says the check-off box is needed to make sure a candidate does not dump a million dollars into a campaign in the final weeks of the race when the other candidate can not possible recover. Ravenstahl says he thinks it is important that both the city and the county have the same law and he hopes the state will follow suit. The caps would not go into effect until 2010. The figures were set based on half of the two year federal limits and would change as the federal limits change. Currently there are no limits on campaign contributions in the city.

County Announces Plan to Prevent Foreclosures

Ex-President Judge Joseph James gathered today with Allegheny County Sheriff William Mullen and County Executive Dan Onorato to announce a new plan aimed at helping prevent mortgage foreclosures. Starting Monday, January 12th, homeowners who receive a complaint of foreclosure will also receive a pink form along with it. On that form will be a number for a hotline which runs out of the Department of Community Development. The homeowner must call the hotline within 20 days to set up free mortgage counseling with pro bono counselors. The homeowner then has 90 days to complete the counseling. Meanwhile, the program also requires lenders to designate someone to re-negotiate the mortgage, hopefully conciliating it before the scheduled foreclosure hearing. Onorato says the plan will not only help people, but will save taxpayers millions of dollars and prevent the spread of neighborhood blight, as well.

McCullough Lauds Decision

Allegheny County Councilman today expressed his support for the decision made by Common Pleas Judge Judith F. Olson's to restrict drink tax revenue solely for Port Authority use.

McCullough says the judge made a brave decision and restored the rule of law in Allegheny County. The Councilman says the next step is for County Executive Dan Onorato to address the council and explain his intentions for the $12 million in tax revenue.

Onorato Will Not Appeal Ruling on Drink Tax Cash Appropriations

Allegheny County Executive Dan Onorato yesterday announced that he will not appeal Common Pleas Judge Judith F. Olson's decision to restrict drink tax revenue solely for Port Authority needs. He says that as per the judge's ruling, the $12 million slated for the county's transportation budget will be given to PAT for capital needs in 2009 and 2010, and that he will not raise property taxes to mend the deficit left in the county budget. Onorato mentioned that layoffs could possibly make up part of the deficit.

Meanwhile, although the drink tax was cut from 10 percent to 7 percent on Jan. 1, some bar owners continue to charge the same price for drinks. Some owners cite the poor economy for their price increase. Though it would not be illegal to charge more for drinks, County Treasurer John Weinstein says it would be illegal if the drink tax still appeared as 10 percent on patron's bills.

Onorato Presents Proposed 2009 Plan to County Council

Allegheny County Chief Executive tonight presented his 2009 Comprehensive Fiscal Plan before Allegheny County Council. His plan once again refrains from raising property taxes and proposes a decrease in the drink and car rental tax from a 10 percent tax on poured alcoholic beverages to 7 percent. Onorato says excess revenue from the drink tax, which has already raised more than the $32 million that was needed to subsidize the Port Authority, will go towards outstanding debts on the county's roads and bridges. The overall proposed operating budget is $762.7 million and the proposed capital budget is $63.4 million. Onorato also stressed that in 2009 he will continue to follow the steps towards consolidation of the governments of Allegheny County with the City of Pittsburgh. He says the county will also pursue potential extraction of natural gas from Marcellus Shale located on the 10,000 acres of county land at the airport and in other areas. If approved, the budget will reflect the eighth consecutive year Allegheny County has not raised property taxes.

Onorato Plans To Lower Drink Tax In 2009

County Executive Dan Onorato says when he presents his budget proposal to county council he will recommend the drink tax be lowered starting in 2009. County Council member Jim Burn will introduce legislation needed to reduce the tax, but drink tax opponent Kevin Joyce says the proposed reduction is not an acceptable compromise. Onorato says any revenue that exceeds what is needed to fund the port authority will be used for infrastructure needs in the county.

The drink tax is currently on pace to exceed the proposed amount of revenue, Onorato said when he came up with his figures for what he felt the tax would bring in he wanted to be fiscally responsible and not over estimate the figures. The $2 a day car rental tax will not be changed for 2009.

Allegheny Green Team Formed

County Executive Dan Onorato has formed the “Allegheny Green Action Team” and filled it with business, community and environmental group leaders. Onorato says he will also hire a sustainability manager using foundation grants to make sure the suggestions generated by the team are instituted. Onorato says the sustainability manger will also work with all department heads to find ways to green up their operations while staying within their budgets. He says the county will also focus on preserving green space and promoting sustainable development. Onorato says he hopes that by leading by example the county will encourage municipalities and individuals to consider the environment when making decisions.

Onorato Wants Natural Gas Drilling In County To Be Organized Effort

Allegheny County Chief Executive Dan Onorato wants to form a committee composed of himself, County Council and the Airport Authority to determine how best to approach the possible drilling of natural gas in the county. Onorato says he has been approached by companies already interested in drilling at the airport and on other county-owned land.

The Airport Authority had been seeking bids to drill for natural gas on the property they lease from the county. Onorato put a stop to the bidding because he says the county owns that land, and will take the lead on negotiating drilling contracts as well as determining how the revenue will be used.

Onorato said this is a great opportunity to add revenue to the county, and possibly the airport.

Friends Against Counterproductive Taxation Challange the Drink Tax

FACT, or Friends against counterproductive taxation held a press conference downtown at the Carlton Restaurant to announce their "Whiskey Rebellion 2" which is a campaign against the Allegheny County Drink Tax. They Provided estimates of what they say are going to be the total lost revenue as a result of the drink tax. FACT projects by years end 63 million dollars of sales will be lost in the county. Over the first 16 weeks FACT claims 21 Million Dollars have been lost. FACT Executive Director Michele Burchfield has challenged Dan Onorato and Rich Fitzgarald to a public debate over the tax as an attempt to reach an amicable solution.

Jail Employees Get New Exercise Equipment

State Senator Jay Costa and County Executive Dan Onorato toured the Allegheny County Jail's new workout facility today. The facility is for staff only; no prisoners will be allowed to use them. The exercise equipment is a part of the county's wellness program. Jail employees are not allowed to leave the premises when on duty, so they are unable to participate in the county's 10,000 steps program. Onorato says he expects the wellness program will help reduce the county's health insurance premiums. The county received $10,000 in grants to buy the equipment, which is already in use.

Onorato Unveils Positive County Finance Information

Standard and Poor's Ratings Services has raised Allegheny County's debt rating from "A" to "A+" and Moody's Investors Services has changed the County's outlook status from "stable" to "positive." Allegheny County Chief Executive Dan Onorato says that these positive reports are a result of a tightened budget and sound fiscal planning that must continue in the future. Onorato cited these ratings and the fact that Allegheny County has not raised property taxes in 6 years against his opponents of the drink tax who claim he mismanaged the county. He says the choice is between a drink and car rental tax, or an increase in property tax and he refuses to increase property taxes. The Chief Executive challenged the homeowners of Allegheny County to join his side of the drink tax debate. Throughout the 6 years Onorato has been in office, neighboring counties all raised property taxes by at least 19%, while Allegheny County has not raised property taxes at all.

Onorato courts Southwest

Allegheny County Executive Dan Onorato will travel to Dallas in the next week or two to meet with Southwest Airlines officials to talk about long term plans for expansion in Pittsburgh. Airport Authority Executive Director Brad Penrod is accompanying him. They were to have meet with the company Tuesday but bad weather in Dallas forced flight conciliations and delays so the meeting had to be rescheduled. Onorato says Southwest has gone from an initial 10 flights a day to 27 and he says the company plans to expand but it is unclear when or by how much. He says he wants to talk to company executives about making it as much as possible and as quickly as possible. He says this is not a “courtesy call.” He says discussions have gone well beyond that point. Onorato says there is no doubt that there is room for southwest to grow here.

Onorato pushes for public safety mergers

More than 40 elected officials, municipal managers and public safety chiefs gathered downtown today to talk about ways to consolidate fire and police services. County Executive Dan Onorato who says he wants the municipalities to look at this type of consolidation to save money ran the meeting. Onorato admits that the consolidations would all be voluntary. He says he hopes to be able to find state or federal funding to create an incentive to make the step. He says most of those at the meeting were receptive to the idea but they had concerns about how such mergers would actual happen. They are concerned about merging different pay rates, retirement packages and union rules. They are also concerned about having to layoff workers. Onorato says solutions can be found for all of those issues. Onorato says he will take his merger crusade to the next chiefs of police meeting and to regional government meetings.

Fight over Hill CBA continues

The chairman of One Hill went before the Sports and Exhibition Authority board yesterday to call on its members to vote no one any agenda item related to the construction of a new arena for the Penguins. Carl Redwood says the team has not been a willing participant in the negotiations for a community benefits agreement or CBA. One Hill has been trying to reach a deal with the team and elected officials to guarantee jobs and other benefits for Hill District residents. Redwood says if the SEA gives all of the needed approvals before a deal is reached there will be no incentive for the Penguins to ever come to the table. He says he feels like his organization is being strung along. County Executive Dan Onorato says that is not the case. He says he and other officials are negotiating in good faith and he expects to reach a deal soon. However, he says, the residents of the hill are not the only people he represents.

Onorato Takes Oath of Office

Allegheny County Chief Executive Dan Onorato began his second term with a long look at the past and a quick glance to the future. With his wife by his side Dan Onorato became the first person to take the County Executive oath of office for a second time. He touted his work over the last 4 years in consolidating row offices from ten to four, merging five 911 centers into one, eliminating duplications in city and county functions and creating shovel ready land for economic development. Onorato also spoke about his efforts to improve the parks in the county through the creation of a "County Parks Action Plan" and a County Parks Foundation. He says in his second term he will continue to focus on improving the parks and will hold town meeting near each of the county's nine parks to get input on the best way to use the land. He says he will be sensitive to the environment in a different way by creating the “Allegheny Green Action team” which will advise him on how to make the government more environmentally friendly and encourage green sector businesses to locate and expand in the county. Onorato says to get anything done in the coming years he will have to work cooperatively with all 130 municipalities, the 14 counties in the region and lawmakers in Harrisburg. After the inauguration Onorato would not speculate on his chance of running for the Governor's office in two years but said his focus on the last 4 years was not an indication that he was not planing to stick around long. He says he thinks he has done well in the last 4 years and he wants to stay on the same path in the next 4 years.