(December 28, 2010) – With just three days to go before its public employees’ pension plan is taken over by the state, Pittsburgh politicians are busy attempting to find a way to inject hundreds of millions of dollars into the system.
Unfortunately, Pittsburgh City Council and Mayor Luke Ravenstahl seem no closer to an agreement that would fend of state intervention than they were months ago.
Early Tuesday, five council members, plus City Controller Michael Lamb, announced their support for a new plan that would inject the fund with dedicated revenue from parking-rate increases over coming decades instead of cash, according to the Pittsburgh Post-Gazette. However, Mayor Ravenstahl – who has championed the idea of selling city parking garages and spaces to raise the required $220 million – rejected the proposal, citing problems dedicating 30-odd years of revenue with one vote.
The Council proposal will not be voted on until Mayor Ravenstahl has a chance to meet with Council, the Post-Gazette reported. His presence has been requested at a meeting Wednesday morning.
The Pittsburgh pension is one of the most underfunded schemes in America. Currently sitting at 29.3% funding, the city must somehow get it to 50% by Friday. One proposal, championed by Mayor Ravenstahl but rejected by Council, would have sold many of the city’s parking garages and spaces to Connecticut-based LAZ Parking for $452 million, a figure well in excess of the minimum required pension payment. With this and other proposals bogged down in City Hall, however, many fear that required payments from the city to the state would severely harm Pittsburgh’s already precarious financial position.
To contact the <em>aiCIO</em> editor of this story: Kristopher McDaniel at <a href='mailto:kmcdaniel@assetinternational.com'>kmcdaniel@assetinternational.com</a>