"Am I as governor interested in direct government subsidy to million-dollar ballplayers in baseball and hockey?  I don't think so when the average person can't afford the tickets for the games and there are so many other pressing problems......

Direct subsidies for future stadiums?  I have a real problem with that".                -Tom Ridge

USX Corporation chairman, Thomas Usher announces the Regional Renaissance Partnership at a luncheon with local business leaders in downtown Pittsburgh.  The partnership introduced a proposal of a temporary sales tax to fund projects including the David L. Lawrence Conventions Center, a new baseball stadium for the Pittsburgh Pirates, the reconstruction or replacement of Three Rivers Stadium for the Pittsburgh SteAlers and development of new entertainment facilities in the Cultural District.

 

On May 29, 1997,  sponsors of the Regional Renaissance Initiative, then State Senator Melissa Hart & former Representative Terry Van Horne held a press conference at Lighthouse Landing in New Kensington in an effort to garner support for a ballot referendum.  The poster reads; "Regional Renaissance; Let the Voters Decide!"

Senate Bill 125,  became better known as the Regional Renaissance Initiative or "Stadium Tax" and was the vehicle which gave 11 Southwestern Counties the opportunity to vote on a sales tax referendum. 

During the legislative process, the bill had gone through a transformation.  The original bill was an innocuous piece of legislation that was to create an excise tax in counties of the third through eighth classes. 

The final bill was amended to change the original purpose by including an additional 65 1/2 pages of legislation.   The final and main purpose of the legislation changed from an excise tax on 3rd through 8th class counties to; Creating a sales tax for 2nd through 8th classes and a perpetual Authority that would over-see the stadium and other development projects.

The State Constitution prohibits amending a bill to change the purpose, and must be clearly expressed in the title of the bill.  No where in the title does it "clearly express the subject" that includes amending the second class county code, Allegheny County.

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Pennsylvania Constitution
Article III

LEGISLATION

Passage of Bills

Section 1. No law shall be passed except by bill, and no bill shall be so altered or amended, on its passage through either House, as to change its original purpose.

What was the original purpose of the legislation? 

The creation of an excise tax for counties of the 3rd through 8th classes?

What was the final purpose of the legislation? 

The legislation was re-designed to impose a so-called "temporary" sales tax while creating a perpetual authority.

Then the original purpose of the legislation was "altered or amended" through either house to change its original purpose, violating the state constitution.

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Form of Bills

Section 3.  No bill shall be passed containing more than one subject, which shall be clearly expressed in its title, except a general appropriation bill or a bill codifying or compiling the law or a part thereof.

Does the bill contain one subject?

In examining the title of the final bill, it contains the subject of an excise tax AND the creation of an Regional Renaissance Authority. Two separate in distinct subjects. 

It should also be noted that the title of the bill does not mention counties of the Second Class, Allegheny County, which was the focus of the stadium initiative.

The following titles below are the titles of the legislation introduced and what was finally passed into law.  Each of the hypertext links will take you to each version of the actual legislation.

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For more information on the constitutionality of this issue,  a parallel point on the  "Uniformity of Taxation" regarding the RAD tax would also apply to the creation of a RRI Tax Initiative sales tax.

 

During the legislative debate, point-man for the Regional Renaissance Partnership, Harold D. Miller was an unregistered lobbyist, while being paid to perform those duties with the Pennsylvania General Assembly to get the initiative on the ballot.  Contact the Department of State regarding reporting requirements and election laws on lobbyists.

 

From April through June 1997, several radio & television commercials aired, full-page newspaper ads were published and  literature  was  produced urging  citizens  to  contact their legislators  to pass the  legislation.  Thousands  of  dollars  were  spent,  yet those dollars were  never reported in election reports. 

The   Regional   Renaissance  Partnership   was  the  early  name  given to  the proponents  of the ballot  initiative.  It was not until August 21, 1997,  two months after the ballot legislation passed that proponents formed a campaign committee named the "Community Alliance for Economic Development & Jobs".

 

During the passage of the Regional Renaissance Initiative, the owner of the financially struggling baseball team, Kevin McClatchy was asked where he will  come up with his $35 million contribution in stadium funding?   McClatchy replied, "Quite frankly, I don't think it's the public's business."     -June 1997

The reporter's question was fair to ask, as the Pirates still have $31.5 million in unpaid loans, and the Pirates contribution would exceed the unpaid debt.  Additionally, the team's contribution was only small percentage of the total cost of the ballpark estimated to be $225 million for construction, not including site acquisition and preparation.

It was after the Regional Renaissance Initiative failed that the Pirates $35 million contribution had increased to $40 million, giving the perception of an increased financial commitment.  However, most of the contribution was coming from the revenue generated from the naming rights. 

The Pittsburgh Auditorium Authority negotiated a deal by giving away the naming rights to the Pittsburgh Pirates.  In turn, the Pirates negotiated a deal with PNC Bank, which netted the Pirates $30 million over the next 20 years, containing no out-of-pocket money from the team.  The naming rights revenues generated for PNC Park really belonged to the owners of the proposed ballpark, the taxpayers.  Thus lowering the over-all tax burden for the public.

 

During the Stadium Tax campaign, the "Community Alliance for Economic Development & Jobs" spent nearly $6 million dollars on this effort.  While their mission was to create a new sales tax to fund stadiums, they over-looked their financial responsibility to pay Allegheny County's 1% sales tax. 

A copy of the Renaissance Initiative's campaign reports is available on Voice PAC's web site.  You will note that there are no expenditures listed to the Pennsylvania Department of Revenue to pay the local tax on items that were purchased outside of Allegheny County, making the Renaissance Committee liable for the sales tax.

 

The Pennsylvania Department of Elections limits campaign activities.  Such restrictions prohibit the use of a public offices for campaign activities.  This includes making campaign phone calls, distributing & producing campaign literature and displaying campaign signs in the office of an elected public official.

During the campaign, Mayor Murphy prominently displayed the "Regional Renaissance" signs in his office.   The Mayor was irked when Voice PAC Chairman Gary English called the Mayor's servants, the Pittsburgh Police.  Reluctantly, the police forced the removal of these campaign signs from hizzoner's office.

 

During a SteAler football game in October, the Pittsburgh SteAlers had aired a commercial promoting the Regional Renaissance sales tax on the stadium JumboTron.  This commercial would influence the outcome of the election and should show up as a campaign expenditure or an "In Kind" contribution on Renaissance Initiative's campaign report.  The commercial never appeared on the campaign reports.   Another violation of election law.

 

 
Regional Renaissance Campaign Tactics

On November 5, 1997, the day after the elections, the headlines read:

0 - 11
Western Pennsylvania voters shut out sales tax

Pittsburgh Tribune-Review

Half-cent sales tax increase loses in all 11 counties, closest margin is in Allegheny
TAX STRIKES OUT

Pittsburgh Post-Gazette

On November 4, 1997, over 530,000 voters from 11 southwestern counties in Pennsylvania came out and voted in the majority against the sales tax initiative.

 

 
Dis-honorable Mention:

A week after the defeat of the Regional Renaissance Initiative, the newspaper reports that the Pittsburgh SteAlers had not paid their rent for Three Rivers Stadium in over a year.

Lest we not forget that the NFL had agreed to terms with CBS in a broadcasting Mega-deal.  The  broadcasting rights deal with CBS will net each NFL team $560 million over the next eight years.  It's NOT that the SteAlers couldn't finance their own new stadium, they just want the proverbial "FREE LUNCH".

Two weeks after the defeat of the Regional Renaissance Initiative,  the McClatchy family purchased the Minnesota Tribune-Star and Cowles Media Company for a valued stock worth $1.4 B-I-L-L-I-O-N, but Kevin McClatchy doesn't have the money to develop his own ballpark.

Hey, it's only money.....yours!

 

 

January 5, 1998
Pittsburgh Tribune-Review

On January 6, 1998, the first inkling of "Plan B" surfaces as Mayor Murphy, Commissioner's Dawida & Cranmer discuss using RAD funds for stadium development. 

Five weeks pass, and Pittsburgh City Councilman Jim Ferlo wrote a resolution on February 11, 1998, stating that the Plan B Working Group's meetings violated the Sunshine Act.  John Feichtel, a media law counsel for the Pennsylvania Newspaper Publishers Association said that the "working group" is an authorized committee of city council, and is subject to the Sunshine Act, which guarantees public access to council meetings.

On March 25, 1998, City Council Members start complaining that they are "out of the loop" in the planning stages.   Councilman Ferlo stated, I think this council has a right to review the plans."   Councilwoman Valerie McDonald said, "It is plain old disrespectful for the architects of Plan B to keep council in the dark."

What about the people that will be ultimately responsible for paying for the stadiums that are unwanted?  Not only have they been kept out of the loop, but the "right to know" and open meeting laws of the "Sunshine Act" were violated.

 

In late January 1998, Voice PAC Chairman Gary English started looking at property assessment discrepancies that favor Pittsburgh's "elite".   In particular, those chiefly involved with crafting  "Plan B".

In late January of 1998, the first property assessment at issue focused on Commissioner Cranmer's home located in Brentwood.  The Commissioner's property was on the market with an asking price of $249,000.  However, county records reveal a fair market value of $100,000.  For more information, you can visit a link on Commissioner Cranmer's property.

For the second time in as many weeks, Gary English held a press conference at Three Rivers Stadium on February  6, 1998.   This time the owner of the Pittsburgh Pirates, Kevin McClatchy is getting the same treatment as the Commissioner Cranmer.

According to county records, Kevin McClatchy  purchased his Shadyside home for $513,000.  (see lot & block 52-E-187)  For taxing purposes, the Assessment Board had given that property an assessed value of $68,000.  Mr. English called McClatchy's failure to correct the assessment a "hypocrisy".

"He's trying to get the same deal for the stadium as he is for his home," English said.  "If you and  I could get the same deal, we could be part owners of the baseball team too."

McClatchy expressed his disappointment, stating that he felt he was being singled out.  However, he is not alone, as several thousand property owners share the same feelings of being "singled out".

In a prepared statement, McClatchy said, "Since I've purchased that house, I have always paid the taxes for that property.   I have never spoken to anyone about having my assessment lowered." McClatchy said.

One should re-read McClatchy's prepared statement.  While Kevin McClatchy may not have spoken to anyone about having his assessment lowered, why would he???  Obviously, his home is under-assessed.  By filing an assessment appeal, the property assessment should only increase to reflect the true market value.  In this case, Kevin McClatchy wasn't interested in paying his fair share in taxes, while seeking over $225 million in tax dollars for his new playground.

 

During the Regional Renaissance campaign in 1997, Voice PAC Chairman Gary English questioned why there was a Regional Renaissance/Stadium Tax issue?

The mantra from Stadium Proponents claimed the need for a local tax base in order to receive state and federal matching funds.  The RRI was the proposed vehicle to receive the "match".  However, Allegheny County has had a local sales tax known as RAD since July 1994, and has never received matching funds.

Additionally, the RRI ballot was based on the false premise of need.  On page three and eighteen of the enabling legislation of the RAD tax,  H.B. 659. the legislation states;

Section 3101-B. Findings and Declaration of Policy.--(a)
The General Assembly finds the following:

(2) Supplemental sources of public and private revenue are required to preserve, improve and develop the region's civic, recreational, library, sports, cultural and other regional assets.

"Section 3130-B. Designation of Assets.--(a) The district may assume the financial functions of the city and county with respect to the support of regional civic facilities, regional parks, regional libraries, professional sports facilities, regional cultural facilities and other organizations and properties vital to the quality of life of the region.

It is evident that the RRI was based on deceit and lies, clearly indicating that the Regional Sales Tax was not needed. Henceforth, Plan B.

 

During the Plan B process of information gathering of the RAD Board, Voice PAC Chairman Gary English believed that every member had been influenced or pressured by Plan B proponents and/or elected officials.   On June 17, 1997,  before the defeat of the Regional Renaissance Initiative, the Pittsburgh Post-Gazette printed a "Letter To The Editor" titled:

"REGIONAL ASSET DISTRICT IS NOT THE ANSWER
TO FUNDING STADIUM, OTHER PROJECTS".

The author, RAD Chairman David Matter expounded on his views of why we should not support RAD funds for new stadiums, rather support the passage of another sales tax, the Regional Renaissance Initiative.

Chairman Matter wrote, "The district is entirely different from the limited-duration regional investment plan put forth by the Regional Renaissance Partnership. Rearranging those benefits at this time would not achieve the goals of the investment program and could threaten the elements of tax reform carefully crafted by the Legislature and local leaders in 1994."

In March of 1998, after the Regional Renaissance Initiative failed, RAD Board Member and President of Oxford Development, David Matter changed his position on the use of RAD funds for stadiums.   At that time, his corporation received an assessment reduction for their corporate headquarters, known as One Oxford Centre, in the amount of $7.2 million. Warranted reduction or political payoff?   You decide.

In a political strategy, if you wish to capture the approval of a board vote, it is prudent to go for the "Lead Duck".  In this case, the Chairman of the RAD Board, David Matter.

 

Four weeks before the RAD Board voted on Stadium Funding, RAD Member Fred Baker publicly states his opposition in using RAD funds for stadium development.  On June 2nd, Commissioner Cranmer forced the resignation of Fred Baker. 

"I was disappointed to be asked to resign.  I wouldn't have resigned on my own.  I would very much like to like to have been able to play a role in killing Plan B,"  Baker stated.

 

Commenting on the removal of RAD Member Fred Baker, Commissioner Cranmer said, "This is just too important of an issue to go down on the philosophy of one guy."

What Commissioner Cranmer said was truly understated, as it was not the philosophy of  "one guy", rather it was the votes of 530,000 citizens that defeated this issue on November 4, 1997.

 

During the approval process of Plan B, a special committee was formed to review the books of the Pittsburgh Pirates and SteAlers.  RAD legislation requires full-financial disclosure for applicants which would be recipient to RAD tax dollars.  However, by fulfilling that requirement, information obtained by the RAD board would be subject to the state's "Right To Know Act".  Thus, opening the information to the public.

Both the Pirates and SteAlers claimed that opening their books would expose proprietary information to other teams throughout the league as well as player's agents.  Regardless of RAD requirements, a Committee of "two" was formed to review the financial books of the Pirates and SteAlers.

The Committee comprised of RAD Member, Gerry Voros and RAD Board Director, David Donohoe. Both Mr. Donohoe nor Mr. Voros were not allowed to make copies or take notes of the financial information that was about to be reviewed.   Their findings committed to memory were reported to the rest of the RAD Board, in which members were to make a decision on approving
Plan B.

The Committee selection was a sad example of partisan politics in order to achieve the goals of Mayor Murphy, ....stadiums.  Both members of the Review Committee had a conflict of interests.  First, Gerry Voros serves as the Campaign Manager for Mayor Murphy.  Second  member, David Donohoe, is the brother of Tom Donohoe, a Pittsburgh SteAler Director of Football  Operations.  

Leave it to RAD Chairman David Matter, as he was quoted in a June 27, 1998 P-G article that he sees no conflict of interest in either candidate selected.  One might have to wonder about seeing things clearly, as it was only three months prior that Chairman Matter received the $7.2 million dollar property assessment reduction that is making things a little fuzzy.

Nevertheless, we can not forget the requirement of full-financial disclosure that was never addressed in the news report, a requirement of RAD law (Act 77).  The fluff of good government was giving the appearance of integrity in politics, while morality was thrown out the window in forming the "Committee of Two".  This is indicative that it's stadiums at any cost.

 

A picture is worth a thousand words

Commissioner Bob Cranmer & Mayor Tom Murphy On July 9, 1998, the RAD Board held a public hearing at Pittsburgh City Council Chambers.  Despite the outcome of the Regional Renaissance Initiative and the public's continuance in opposing the public funding of stadiums, the RAD Board Members voted 6 to 1 in favor of stadium funding.

With the RAD Board approving the use of the local RAD sales tax, it is now up to the Governor and the Pennsylvania Legislature to bring the final pieces for stadium funding.

 

The RAD Board is an independent authority created by Act 77 of 1993.  The enabling legislation can be found at Voice PAC's web link, H.B. 659. 

On August 10, 1998, Judge Robert Horgos heard preliminary objections in a lawsuit filed by attorney Alan Brunwasser.  During the proceeding Judge Horgos  commented, "The court does find somewhat troublesome the removal of the RAD board member. When you stretch that type of thinking, why have the board at all?  Why not just have the commissioners vote on what they want to spend money on?"

Ninety minutes after the hearing began, Judge Horgos ruled, dismissing the case with prejudice.  It should also be noted, a lawsuit by the Allegheny Institute was filed involving other merits of the stadium issue.  Judge Horgos also disposed of this case in the same fashion.

 

Meanwhile, it deserves an honorable mention that should not go unnoticed.  It has been said that the  stadiums are for us.   Mayor Murphy was quoted in 1995 stating, "I look at these facilities largely as community facilities, and I think there's an appropriate public role in help to finance the facilities themselves".  Since digging up this quote from four years ago, we now realize that the Mayor has always believed that the stadiums belong to the community.  

With that being said, one should review the  Pirates Agreement and SteAlers' agreement with the Pittsburgh Auditorium Authority.  The two hypertext links will show the deals cut with the Authority, authorizing every available revenue stream over to the teams.   The taxpayers' financial return on their "community investment"......none.

 

Pirates Need Cash

On August 6, 1998, the Pittsburgh Pirates unveiled the name of the new ballpark on Pittsburgh's north shore, PNC Park.  Attending, was Pirate owner Kevin McClatchy, Baseball   Commissioner Bud Selig and many of Pittsburgh's politicians.   The press conference was held in at at Roberto Clemente Parklet with a setting replicating a mini-ballpark theme including an astro-turf floor laid-out in a baseball diamond, bleachers, and a replica team dressed in old-time baseball uniforms.

What the ceremony was really about, was the diversion of revenues generated by a new stadium, and giving it to the Pirates, which in turn used that as the Pirate's contribution for stadium funding.

During the ceremonies, Voice PAC Chairman Gary English held a press conference at the PNC Park unveiling.  Mr. English was preparing to mail an application that morning to the Pennsylvania Historic Landmark and Museum Commission.  In an attempt to save Three Rivers Stadium from demolition, Mr.  English's application cited many historic moments in the history of the stadium.  The application can be reviewed at Voice PAC's web page titled, "Three Rivers Stadium; Historic Landmark?" 

The PHMC is comprised of political appointments by Governor Tom Ridge.  The Governor has publicly expressed his desire to fund up to one-third of the costs for two new stadiums in both Pittsburgh and Philadelphia.  The fate of the application was clear, as the appointed members serve at the pleasure of the Governor.  A fact that was told to Mr. English by PHMC member Doug Reynolds.

 

A week before the Pennsylvania Legislature's vote, Mayor Murphy makes a tearful plea to state legislators, "We need the Legislature to make the right decision".

On November 24, 1998, the Senate approved the debt ceiling legislation with Senate Bill 672.   On the House side, Legislators continued the debate for hours, while deal-making and other legislation pushed through the House.  At 1:15 a.m. the State House finally recessed without ever voting on the stadium funding bill.

 

The following day, it was learned that the unanimously approved repealer legislation known as House Bill 907, played an end-run to fund stadiums.  The innocuous bill was designed to repeal obsolete sections of the County Code law, including parts of the Regional Renaissance.

At a hastily called Press Conference at Three Rivers Stadium, Mayor Tom Murphy said the  Governor was unaware of the repealer bill, and the ramifications that might allow the Governor to fund stadiums without Legislative approval.

Remember the words of Mayor Murphy on January 5, 1998..... "The voters made the decision that they do not want tax-dollars to pay for stadiums and I think we need to respect that".   It is evident that hizzoner's respect turned jubilant as the Mayor planned to defy the voters and deceive the Legislature through the stealth repealer bill.

With a smirk on the Mayor's face, Murphy said, "I would never suggest that legislators don't read the legislation they vote on.   That's why we pay them."  ....Nothing like rubbing it in their faces, Mayor Murphy.

Also attending the press conference, the threesome   of Commissioner Dawida, Kevin McClatchy and Art Rooney II were wearing smiles that looked liked fat cats that had just eaten the mouse.

The following week, the Governor vetoed the legislation and said that it would have to be won on its merits.  That meant waiting till February 1999, when the Legislature reconvened and addressed the issue for a second time.

 

 
The next week, Pirate owner demands a financial commitment from the state by December 21, 1998, otherwise the stadium design process will stop.

Immediately following the ultimatum, Mayor Murphy throws in the proverbial towel on Plan B funding.  "It's out of my hands," Murphy said.  "I am deeply apologetic for my intemperate remarks that were not directed at those members of the General Assembly who have been honorable and engaged in sincere debate on the important issue of economic development in the Pittsburgh region.

Five days later, Mayor Murphy attends a closed door meeting at the Governor's Pittsburgh Office,  hizzoner is up and running, trying to resurrect Plan B.

 

On December 5, 1998, at Philadelphia's Veteran Stadium, several Army cadets attending a college game were leaning heartily on a railing, when it collapsed causing injuries.

The next day at Three Rivers Stadium during a Pittsburgh SteAlers-New England Patriot's game, a wall mysteriously collapses with no injuries involved.  This makes it the second accident involving Pennsylvania stadiums in as many days.  Coach Bill Cowher stated, "My first reaction was,
too bad it wasn't a week before the referendum".

"After watching the game in Philadelphia, and seeing the incident happen here, the talk is not about wanting new stadiums for revenue; we want new stadiums for safety."  Cowher's remarks came after the Stadium Authority had already investigated the accident & maintained that the facility was structurally sound.

What a coincidence..............

 

Roman Colliseum Age: 2,000 years

Three Rivers Stadium              Age: 29 years

Putting it all into perspective what's wrong with this picture? The Roman Colliseum, built nearly 2,000 years ago is still standing today: Three Rivers Stadium, constructed 29 years ago with 20th Century Technology, using steel reinforced concrete with chemical sealants is scheduled for demolition in two years........2,001 Okay, and it should be mentioned that the stadium debt just dipped below the original 1970 construction costs of $35 million.  As of March 26, 1999, the *debt stands at $34,591,000.00. *Source: Pittsburgh Stadium Authority Mark Schneider; Chairman

Dateline: December 13, 1998

Ex-Padres pitcher Kevin Brown signed a 7 year, $105 MILLION DEAL with the L.A. Dodgers.

Marc Ganis, consultant to the Pittsburgh Pirates which helped in crafting the Plan B financing acknowledged that the baseball economics had become "ridiculous".    The salary structure is just totally insane. But it is what it is, and it's not going to change anytime soon".

Mr. Ganis further commented on the necessity of the Pirates to have revenue generated by a new stadium in order to stay competitive. "The reality is that the economics of baseball don't allow a team in a secondary market, like Pittsburgh, the ability to field a competitive team unless they have a new stadium".

Currently, the Pirates payroll is $13 million a year. If the taxpayers pay for a new stadium, the new revenue streams will bring in an additional $30 million annually, raising the Pirate payroll to $43 in the 2001 baseball season.

A question must be raised about player salaries which have broken the $15 million a year plateau in 1998. What will player salaries be in year 2001 if/when the new Pirates ballpark is completed?

The Pirates' have a projected payroll of $43 million in 2001 season.  Conversely, the L.A. Dodgers  in acquiring Kevin Brown for $15 million, already have outfielder Gary Sheffield under contract for $11.4 million a year.  These two players have a combined salary of $26.4 million, which will consume 40% of the Pirates projected payroll in the 2001 season.  The new stadium will not be enough to keep them competitive, solvent or in Pittsburgh.

The Padres owner, John Moores called the Kevin Brown deal, "A truly tragic day for baseball. We're on a verge of destroying the competitiveness of many, many ball clubs. Maybe this will be the straw that broke the camel's back."

Four weeks later, the Tribune-Review Sports Department reports, Major League Union Head, Donald Fehr said baseball  owners who want an NBA-style salary cap can "FORGET IT".

Donald Fehr gave us that confirmation, another nail in MLB's coffin.

 

In order to keep the steam-roller moving, Governor Ridge finds $13.5 million dollars on December 18, 1998, and an additional $5 million match coming from the City of Pittsburgh, keeping the Pirates owner McClatchy at bay while the wheeling and dealing continues for Plan B funding. 

The Governor found $7 million in uncommitted Redevelopment Assistance capital budget funds and used an additional $6.5 million in Redevelopment Assistance funds already owed to the city for renovations to Three Rivers Stadium. 

That's an interesting feat, especially when there would be available funds for stadium renovations when it is scheduled to be torn down in just two years?  Additionally, if the $6.5 million in funds are already earmarked for improvements already made, where will the money come from to pay for the "already made improvements" ?

One should also find it interesting, the cash-$trapped City of Pittsburgh would add another $5 million in matching funds.   Two months later on February 24, 1999, the city is facing a $15 million budget shortfall.  The matching funds the Mayor gave the Pirates would have covered 1/3 of the budget crisis.

But wait a minute, Councilman Ferlo wants to make up the City deficit by raising taxes. His idea, increase the Real Estate Transfer Tax.  Yes, as the residents continue to leave the city & county, Councilman Ferlo wants to tax you one last time, now that you're selling your home to leave the city.

 

 
On December 20, 1998, the Governor was getting ready to wrap legislative Christmas presents.  Governor Ridge indicated that he was willing to begin a public discussion of the legislative pension grab.  The Governor implied that lawmakers, in exchange would have to vote for raising the state's debt limit to borrow $500 million for building the proposed stadiums. 

Legislative pensions are also reminiscent of the Governor’s pledge to veto the Legislator’s 18% pay raise of 1995. One should remember the Governor signed that bill into law. It’s becoming ever-so-clear, stadiums at any cost!

 

Dateline: January 7, 1999

Governor Ridge is proposing "taxpayer protection" provisions which would include financial penalties if teams break their leases.

While the debt ceiling is lacking legislative support, the Governor also wants an additional increase in the state debt ceiling for other projects throughout the state.  The Governor through spokesman Tim Reeves said Ridge wasn't willing to trade projects for votes but noted that the administration has helped with projects to those lawmakers who have cast tough votes.  "We have a record of being receptive to people who cast tough votes with us.  Relationships count," Reeves said.

 

Dateline: January 21, 1999

Pirate owner, Kevin McClatchy issues second deadline.  If funds are not approved by February 10, 1999, the design and site preparation work will end.

When asked by reporters, McClatchy stated he's not making any threats.  However, when pressed if the team doesn't get a new stadium, would they be sold and have to move?  McClatchy replied, "No comment".

 

Dateline: January 22, 1999

Just when you thought you have had your fill on a stadium funding plan known as Plan B, another one is surfacing. This time, there's a fight to claim credit of the latest proposal. Allegheny County Executive Candidate, David Christopher unveils stadium funding proposal, "PLAN C".  The plan calls for a new SteAlers stadium, a new hockey arena with renovations to Three Rivers Stadium to better accommodate the Pirates.

The funding for the plan would not involve state funds, as $100 million in hotel tax revenues, $130 million in stadium revenues and the current $10 million going to support in bond borrowing.

The plan created a controversy, as Jake Haulk of the Allegheny Institute claimed that Christopher had virtually stolen the plan that was crafted by the Allegheny Institute and State Representatives Habay & Stevenson.

What no one has seemed to notice is the components of the Institute's Plan C  proposal, the use of the RAD Tax.

In June of 1998, Commissioner Cranmer removed Fred Baker from the RAD Board, and planned to move forward with stadium funding by using the RAD Tax as the key component.  The Allegheny Institute responded by making the promise that if they pursued the use of the RAD Tax for stadium funding, the Institute would support the passage of the new "Home Rule Charter", (new form of county government) and would then use the power of referendum to Repeal The RAD Tax.

It is hypocritical that the Institute plans to Repeal the RAD Tax, then comes up with a stadium funding proposal which uses the RAD tax that they have vowed to repeal.  Let Mr. Bowyer & Company know what you think! 

 

Dateline: January 28, 1999

House Majority Leader, John Perzel proposes "Plan L".  Representative Perzel unveiled a loan proposal to fund four stadiums in Pittsburgh and Philadelphia. 

While the plan on face value appears to treat the teams like any other business, Governor Ridge's Press Secretary Tim Reeves reacted in saying that it would not  resolve the threat of other states luring teams with offers   to build stadiums free of charge.  Reeves also noted that the Governor understands the need for taxpayer protection in any stadium plan.

Reaction to the proposal gives mixed reviews:

Representative Van Horne: "It certainly flies in the face of everything we've done to this point.  I don't like it. Why do it now?"

Allegheny Institute's Gerry Bowyer:  "A loan is much more friendly than a grant.  I'd have to see the terms.  You can hide a lot in a low-interest loan.  The devil is in the details".

Representative Habay expressed concerns as to who might back the loans.

The following is an excerpt of a letter from Voice PAC Chairman Gary English to House Majority Leader, Representative John Perzel:

I called your office last week and shared an idea that would insure taxpayer protection on stadium funding. Your original plan of loaning the teams the money would not guarantee payment should the teams file bankruptcy. I suggested that the Commissioners of the NFL, MLB & the NHL Leagues co-sign the loans. Their co-signing would insure payment, as the Leagues would be backing the loan.

Senate Bill 10, does not offer taxpayer protection of this kind. In fact, the so-called loan is nothing more than a shell game known as Tax-Increment-Financing, (TIF’s). Neither one of the teams will have any out-of-pocket money going towards paying back the loan.

In fact, all taxes that the teams would normally generate will be used as a tax-credit toward the repayment of the loan. The tax-credits will not cover the $460 million in interest. In reality, the taxpayers will be on the hook for $780 million. This bill also lacks any recourse should either team file for bankruptcy. This is a very bad deal for the taxpayers.

Note: As of February 24, 1999, Representative Perzel has not responded to the letter.

 

Governor Ridge is calling the debt ceiling legislation a "Jobs" bill.  Oddly enough, the Regional Renaissance Initiative was given the same billing.  For those that do not remember, the Renaissance Initiative signs read:

Vote   YES on the INITIATIVE Jobs for our region

Apparently, the authors of the Regional Renaissance Initiative, Senator Hart & Representative Van Horne, felt it was important enough of a decision to
"LET THE VOTERS DECIDE".  The words expressed by the authors of the RRI at a press conference in May of 1997.

Apparently, a majority of the Pennsylvania legislature felt the same way and also made the assertion that the RRI was not a "STADIUM TAX", rather a jobs bill.

If the Legislature felt it was important for the citizens to vote on it in 1997, why shouldn't we have the same opportunity to vote on it again in 1999?

Senate Bill 10, a stadium tax or a jobs bill ?  That is the question......

 

Support For Public Stadium Funding?

In the course of the stadium issue, the majority of the voter's came out against the RRI stadium funding plan. Since then, the polls continued to indicate no support for stadiums. What's happening to the representative government?

Here's a little history:

KQV Poll- Published in the Tribune-Review
"Callers overwhelminly oppose use of any tax money for stadiums"

2/20/98,

823 against

74 in favor

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Commonwealth Foundation POLL
"Voters Disagree with public stadium funding"

4/26/98,

760 against

240 in favor

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KQV Poll- Published in the Tribune-Review
"Callers oppose RAD tax"

5/23/98,

665 against

69 in favor

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KQV Poll- Published in the Tribune-Review
"Callers want referendum before spending tax money on stadiums"

6/6/98,

855 support referendum

191 oppose referendum

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KQV Poll- Published in the Tribune-Review
"Callers give "B" plan "F" Grade

6/24/98,

1,168 opposed plan

155 supported plan

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KQV Poll- Published in the Tribune-Review
"Callers oppose latest Plan B"

(undated clip)

1,483 oppose plan

279 supported plan

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KQV Poll- Published in the Tribune-Review
"Callers Oppose compromise funding plan"

2/5/99,

908 oppose plan

358 support plan

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The most important poll was taken on November 4, 1997, as 530,706 voted in the majority from 11 southwestern counties.   Consistently, the citizens have expressed their opposition to the public funding of stadiums.  In nearly two years since the issue has captured the public's attention, not one poll taken has  shown support from the majority.

 

Support For Public Stadium Funding
Part Deux

Since Judge Horgos' dismissal of lawsuits filed by Attorney Alan Brunwasser and  The Allegheny Institute Taxpayers Coalition, both parties filed an appeal to the Commonwealth Court.

Motions on behalf of the RAD Board were filed, which initiated the State Supreme Court to intervene in a move known as the"Kings Bench Powers".  The RAD Board's intent was to speed the judicial process through an expedited procedure, as they claimed litigation would adversely affect their ability to acquire bond issues for stadium funding.

On March 9, 1999, six Supreme Court Justices heard oral arguments from the RAD Board Attorneys, Allegheny Institute Taxpayer Coalition & Attorney Alan Brunwasser.  On March24, 1999, Justice Flaherty ruled, upholding the lower Courts findings, paving the way for Stadium Funding.  And a third lawsuit.......?

On  February 3, 1999, the State General Assembly voted on the Stadium Funding bill, the following is the actual legislation and role call vote:

Senate Bill 10

State Debt Ceiling - Stadium Funding

The Senate Vote

The House Vote

For those that have taken the time to look at this legislation you will note that the bill purports the stadium funding as a "loan" to the teams.  The loans  includes a payment schedule and a default repayment clause should the teams try to leave their respective cities before the lease expires.  Due to these facts, one should look at the State Constitution, Article VIII, Section 7 & Article VIII, Section 8.

Article VIII, Section 8 reads:

Commonwealth Credit Not to Be Pledged
Section 8.

The credit of the Commonwealth shall not be pledged or loaned to any individual, company, corporation or association nor shall the Commonwealth become a joint owner or stockholder in any company, corporation or association.

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The issue of the Commonwealth prohibited from loaning or pledging money to private entities reaches the House Floor for debate.   Representative Sam Rohrer (R) from Berks County speaks to the House of Representatives on the Constitutionality of the Stadium Funding Legislation.

Special thanks to D.I.R.T; Dare Inquire Representatives Truth for providing the transcripts of the House Floor debate.

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During the Judicial Proceedings in Western Pennsylvania to block stadium funding, Philadelphia area Attorney Phil Berg, files the third lawsuit on behalf of Dom Giordano, a Radio Talk Show Host for WWDB-FM, and the citizens of Pennsylvania.  On March 5, 1999,  Mr. Berg filed petititions in Commonwealth Court on the basis that the Senate Bill 10 legislation violates Article VIII, Sections 7 & 8 of the State Constitution.

After the citizens of southwestern rejected the public funding scheme for 2 stadiums in 1997, the Pennsylvania Legislature voted to give purported loans to fund 4 new stadiums in Pittsburgh and Philadelphia.

On March 21, 1999, Dennis Barbagello of the Pittsburgh Tribune-Review  reported that the NFL is setting up its own stadium construction loan plan which make loans available to the teams ranging from 34 to 50% based on the criteria of small and large market teams.

In Pittsburgh, the NFL loan to the Steelers would be 34%, which has an uncanny equivilent to the Governor's long-standing commitment for stadium funding at 1/3 the cost. Pittsburgh Steelers owner Dan Rooney is a charter member of the NFL and would have been first in line to the NFL's loan program.

It raises a series of questions:

1. How long has Mr. Rooney known about the NFL loan proposal?

2. Why wasn't the NFL loan proposal brought out during the discourse of stadium funding in the PA Legislature?

3. Why didn't Dan Rooney accept the NFL loan proposal instead of placing the burden on the Pennsylvania taxpayers?

Mr. Rooney and the NFL Board had to have knowledge about the NFL loan program before the State  Legislature voted on Plan B.    This action of purposely keeping this information away from the Legislature was dishonest.   Meanwhile, the teams' self-imposed deadline was ticking, prompting Rooney & McClatchy to renew their threats of moving the teams if the State didn't come through with the funding.

On March 25, 1999, the Chairman of Voice PAC attempted to reach Dan Rooney at the Pittsburgh Steeler's offices to get comment on the NFL Loan Program.  Mr. Rooney was not available for comment, and the phone call was not returned. 

This action coincides with the deceitful discourse of the whole stadium funding issue.  Since the public did not have the opportunity to vote on this issue, Voice PAC is asking YOU to contact your Legislators for a recall vote on Senate Bill 10. 

Democracy is a way of life, "Use Your Voice" contact your Legislator by email or phone and demand repealment of Senate Bill 10.

 

"This is no longer a matter of stadium funding.
Rather an issue that goes to the very core of our government,
eroding the roots of democracy."

-Gary J. English      

Stadium Tax Credits:

• Current: Three Rivers Stadium Unpaid Debt of  $40 million

• Current: Pittsburgh Pirates $31.5 million in outstanding loans

• Direct subsidies for future stadiums?  ''I have a real problem with that'' -Tom Ridge:  April 1994

• ''Regional Renaissance; Let the Voters Decide!'' - State Senator Melissa Hart &  Representative Terry Van Horne: May 29, 1997

• Using the RAD Tax to fund stadiums: '' ....could threaten the elements of tax reform carefully crafted by the Legislature and local leaders in 1994.'' -RAD Chairman David Matter:  June 1997

• The Pirates stadium funding contribution?  ''Quite frankly, I don't think it's the public's business.''   -Kevin McClatchy:  June 1997

• ''The voters made the decision that they do not want tax-dollars to pay for stadiums and I think we need to respect that.''  -Mayor Murphy:  January 5, 1998

• ''It is plain old disrespectful for the architects of Plan B to keep council in the dark.'' -Councilwoman Valerie McDonald:   March 25, 1998    ....Same goes for keeping the citizens in the dark as well.

• ''I wouldn't have resigned on my own.  I would have very much liked to have been able to play a role in killing Plan B.''  -Former RAD Board Member Fred Baker:  June 2, 1998

• ''This is just too important of an issue to go down on the philosophy of one guy.''  -Commissioner Cranmer on the removal of Fred Baker:  June 2, 1998

• ''The court does find somewhat troublesome the removal of the RAD board member Fred Baker.  When you stretch that type of thinking, why have the board at all?''  -Judge Robert Horgos:   August 10, 1998

• The bogus review committee to look at the Pirates & SteAlers finances consisting of David Donahoe (brother of Tom Donohoe, Pittsburgh SteAler's director of player operations) & Gerry Voros (Mayor Murphy's campaign manager):  ''I see no conflict of interest in either candidate.''   -Chairman David Matter:  June 27, 1998

• Responding to the stealth bill legislation; ''I would never suggest that legislators don't read the legislation they vote on.   That's why we pay them.'' -Mayor Tom Murphy:  November24, 1998

• Responding to the stadium wall collapses in Philadelphia & Pittsburgh;  ''My first reaction, too bad it wasn't a week before the referendum.''  -Coach Bill Cowher:  December 5, 1998

• Responding to the Kevin Brown contract signing of $105 million, ''A truly tragic day for baseball. We're on a verge of destroying the competitiveness of many, many ball clubs.''   -The Padres owner, John Moores: December 13, 1998

• ''Baseball economics have become "ridiculous".   The salary structure is just totally insane.    But it is what it is, and it's not going to change anytime soon.''   -Marc Ganis, consultant to the Pittsburgh Pirates: December 13, 1998

• Pork-barrel projects for stadium votes, ''We have a record of being receptive to people who cast tough votes with us.  Relationships count.''  -Governor spokesman Tim Reeves:  January 7, 1999

• Violating the will of 530,000+ voters on stadium funding: Compliments of The Pennsylvania Legislature & Governor Tom Ridge:  February 3, 1999

• On March 21, 1999, Dennis Barbagello of the Tribune-Review reports that the NFL has come up with a stadium loan programs for the teams.  Steeler owner, Dan Rooney did not give this information away from the legislature while they are being lobbied to support Plan B.

• Violating the State Constitution; Article III, Sections 1 & 3, Article VIII, Section 1, 7 & 8; Compliments of The Pennsylvania Legislature & Governor Tom Ridge

Dear Pennsylvanian:

We hope you found our web page both informative and thought provoking.   If you would like to comment on any of the contents, add additional information or would like to financially support our work, please feel free to contact us.

Sincerely,

Gary J. English; Chairman

Voice PAC

"Our elections are free,
it's in the results where we eventually pay"

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