KEY ELEMENTS OF THE PROPOSAL

Creation of a Regional Growth Fund to provide $250 - $300 million for economic development projects in all 10 counties in the region. The Regional Growth Fund will provide communities around the region with the local funds they need to access other private, state, and federal funds for the completion of $500 - $750 million in projects including:

• Modern industrial sites and other infrastructure that will enable new and expanding business to locate in the region;
  
• Transportation and transit projects to improve access to both business locations and regional attractions;
  
• Cultural, historical, recreational and entertainment facilities that attract visitors to the region.

Creation of a Regional Destination Facilities Fund, which would provid $350 to $400 million in funding to triple the size of the David L. Lawrence Convention Center; to develop theaters and new parks in the Pittsburgh Cultural District; and to build a new baseball park and new or improved facilities for professional football. These funds would be used to match other sources of funding to complete projects totaling over $700 million.

SOUTHWESTERN PENNSYLVANIA
VOTERS TO MAKE THE DECISION

The voters of the region should make the decision regarding whether their tax dollars should be used for these projects. But state legislation is needed to give them the opportunity to decide, and that legislation must be passed in June (of 1997) in order to place a referendum on the November, 1997 ballot in each of the 10 counties in the region (Allegheny, Armstrong, Beaver, Butler, Fayette, Greene, Indiana, Lawrence, Washington and Westmoreland).

It appears on its face, that such a legislative proposal is being rushed with the impact and implications of this magnitude.

We also must look at the constitutional parameters of:

Article VIII, Section I

"Uniformity of Taxation".

All taxes shall be uniform, upon the same class of subjects, within the territorial limits of the authority levying the tax, and shall be levied and collected under general laws.

The ten county RRP proposal would involve 2nd through 6th class county classifications. In order to maintain constitutional uniformity, all 2nd, 3rd, 4th, 5th and 6th class counties would have to be included in the legislative proposal. Therefore, this legislation would effect every county in Pennsylvania except one, Philadelphia County. The only 1st class county.

TEMPORARY SALES TAX
TO FUND A PORTION OF THE PROJECTS

The referendum will propose a one-half one percent ( 0.5% ) sales tax increase in each county for exactly 7 years, after which the tax must expire. If all 10 counties were to pass the referendum, the tax will generate between $600 million and $700 million over the seven-year period, which would enable creation of the Regional Growth Fund and provide the local funds needed for the regional destination facilities.

While the proposed legislation would include a "sunset" clause, (an expiration date) remember the temporary taxes i.e "The Johnstown Flood" tax, and the temporary toll of the Pennsylvania Turnpike.

The RRP estimates that the tax will generate between $600 - $700 million in revenues over the seven year period. Have these estimates included the possibility that not all 10 counties might adopt the tax? Other factors that effect revenue needs are stadium cost over-runs, site acquistion costs, and the development of associated infrastructure which provides road access to the proposed projects.

EACH COUNTY TO HAVE A SAY
IN HOW ALL TAX MONEY IS SPENT

Each county voting to participate in the project will have representation on a regional body that will administer all of the tax revenues, including funds used for sports stadiums, and insure the funds are distributed equitably and responsibly.

Posing the question:

Can the ten county council or "regional body" vote as to which county the proposed "Forbes Field II" will be built in?

MAJORITY OF SALES TAX REVENUE
STAYS WHERE IT IS GENERATED

In every county, the majority of sales tax funds generated in that county will be used for projects in that county. With a one-half percent sales tax increase, the amount generated for use within each county over the seven-year life of the tax would be (all figures are approximate):

Armstrong County:    	$ 5 -  6 million
Beaver County:	         $15 - 19 million
Butler County:	         $15 - 18 million
Fayette County:	         $11 - 14 million
Greene County:	         $ 3 -  4 million
Indiana County:	         $ 6  - 8 million
Lawrence County :   	$ 6  -  8 million
Washington County:  	$18 - 23 million
Westmoreland County      $35 - 43 million

In Allegheny County, approximately $90 million would be available for industrial development, transportation, tourism, and other economic development projects in the county separate from the downtown destination projects.

As this initiative was printed, you will notice that Allegheny County was segregated in the breakdown of approximated revenues.

 

EACH COUNTY'S VOTERS
DETERMINE WHETHER THEY PARTICIPATE

If the voters in a particular county do not approve the referendum, the tax will not be imposed in that county. However, that county would then receive no funds from the Regional Growth Fund and it would not be represented in decisions on how the proceeds from the tax are spent.

Questions to be raised:

1. If only a minority of the counties adopt the proposal will it:

A. generate enough revenue to build the primary concern, two stadia?
B. force the need to extend the (7) seven year time frame?

2. Of the ten counties, only Allegheny County has an additional sales tax. Why should the voters of Allegheny County vote for this tax, when 1/3 of all the funds collected will go towards developments in the city of Pittsburgh?

Comment: Should that happen, the extra 1/2 percent sales tax that might be adopted in the other 9 counties would lessen the 1% disparity that these other counties have enjoyed over the last three years.

PRIVATE CONTRIBUTIONS TO ME MAXIMIZED

Revenue from the temporary sales tax increase would not be used to pay for more than half of any specific project, including the proposed sports facilities. At least half of the funding for each project would have to come from private contributions or other funding sources such as state and federal funds.

Maximizing private contributions and investments from the private sector would be ideal. The RRP proposal states that less than half of the "temporary" sales tax increase could be used to fund the stadium. However, it would not be opposed to allowing "SUCH SOURCES AS STATE & FEDERAL FUNDS". ........State and Federal funds still come from our pockets!

During the debate of the late 1960's, the proposed Three Rivers Stadium was to be the catalyst for economic development around the stadium site. The Carnegie Science Center and Clark's Restaurant & Bar are the only business development in close proximity to the stadium. This development took place nearly 20 years later.

The citizens must realize that Three Rivers Stadium was built at a cost of nearly $35 million in 1970. The current indebtedness now stands at $45 million. If Three Rivers Stadium 1970 building costs can not be paid for in 26+ years, how can the 1997 projected costs of $200 million ever be retired?

PUBLIC OWNERSHIP OF
REGIONAL DESTINATION FACILITIES

The Convention Center and the sports facilities should be owned by a regional public body, rather than by the state or by any private entity.

Fundamentally, the RRP position is flawed. Government should not be in the sports stadium business. It will only perpetuate the need for public subsidy for a private enterprise. (corporate welfare)

HOTEL TAX INCREASE USED TO
ADVANCE THE CONVENTION CENTER EXPANSION

The cost of designing and acquiring the property needed for the Convention Center expansion will be paid for by a 2 percent increase in the hotel tax in Allegheny County for up to 30 years. However, the increase would be reduced to 1.5 percent for the seven years the sales tax increase would be in effect, so that the combined hotel and sales taxes do not exceed 14 percent.

LESS THAN ONE-THIRD OF THE TOTAL TAX FUNDS RAISED WOULD BE USED FOR SPORTS STADIUMS

The majority of the funds would be used for industrial sites, transportation projects, expansion of the Convention Center and the Cultural district, and other tourism attractions. The sports stadiums would be developed in a way that would complement the other projects and help attract new private development and jobs.

A statement once repeated, the RRP is attempting to deflect the image of their proposal as being a "STADIUM TAX". The stereotype of large salaries associated with professional sports is at issue. These sports facilities are the vehicle for professional athletes to earn multi-million dollar salaries that far exceed the income of the common man's entire work life. Alternative means of funding sports facilities should come from stadium stock, ticket prices, "naming rights" of the stadium and "pouring rights" of the beverages. Certainly, investment from the players and owners would also be appropriate.

The RRP mentions that some of the funds will also be used for transporation projects. Is it shortsidedness, or have we already forgotten the recent boost in the gasoline tax and automobile registration fees?

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