Jim Ferlo (Democrat) Senate District 38 Term Expires: 2006 Occupation: State Senator Allegheny County Committees: •Game & Fisheries, (Minority Chair) •Local Government •State Government •Urban Affairs & Housing Contact Information: Senate Box 203038 Harrisburg, PA 17120 Room 535, Floor E, Main Capitol Building (717) 787-6123 D.O. Address: 3507 Butler Street Pittsburgh, PA 15201 Email: ferlo@pasenate.com

A New Plan For The City of Pittsburgh's Budget Crisis Jim Ferlo By: Senator Jim Ferlo Now that the State budget has finally been approved, it's well past time for the General Assembly to focus on the City of Pittsburgh's financial crisis. When the State Senate re-convenes in the January, I will submit several pieces of legislation aimed at assisting the City with its budget deficit, its need for new revenue, and shifting its tax structures to insure more equity. I have voted for and support the need for the Oversight Board that recently passed the Senate and House, but I firmly believe additional measures must be implemented if the City is going to make it through its pressing financial dilemma. My plan includes: Passage of enabling legislation to allow the City of Pittsburgh to adopt a $120 per year head tax to be paid by for-profit employers in the City of Pittsburgh on each employee working in the City. This would include the proviso that those businesses currently paying either the mercantile or business privilege tax will receive a tax credit off-set in an equal amount (the city can expect to collect about $20 million from a $120 per year per employee tax); Legislation to enable local municipalities across the state the option of raising their occupational privilege tax (OPT) (to be re-named the "Employee Municipal Services Tax") up to $52 per year, paid weekly, and also legislation to do the same solely for communities in second class counties (Allegheny County) should the Legislature not be receptive to the state-wide measure. If the City is given the ability to levy the increased OPT, I will insist that Pittsburgh City Council decrease the city wage tax by some negotiable percentage as an offset (the city of Pittsburgh can expect to collect about $16 million with a $52.00 OPT); Reform the State's binding arbitration law for police and fire, known as Act 111, to include specific language requiring the arbitrator to rule on pay increases and benefits commensurate with the budgetary and economic limitations of the municipality and the state/national economy. I will ask that second-class cities (Pittsburgh) be given the ability to determine the appropriate staffing levels and organizational models for their police and fire departments outside of the Act 111 bargaining process; Immediate passage of Senate Bill 507 (Ferlo) which would require the City of Pittsburgh and all state-wide municipalities and townships to pass balanced budgets based on revenues collected from existing taxes, not on anticipated revenue collected from taxes that have not been passed by the General Assembly at the time of passing a budget, a principle that the Murphy administration and City Council have violated in the past; Amend Act 55 of 1997 (Institutions of Purely Public Charity Act) to ensure that large non-profit institutions state wide contribute to their local communities based on their percentage of tax exempt property; Capping the Pittsburgh School Board's earned income tax rate to no greater than 1.75 percent effective budget year January 2005; Legislation providing authority for the Pittsburgh School District to enter into inter-governmental cooperation agreements with other school districts in Allegheny County to assist in the costs of construction, debt service, operating expenses of the Creative & Performing Arts High School (CAPA) and a proposed vocational and technical high school with equitable student enrollment participation from participating municipalities. I want to engage in meaningful participation with the Superintendent and School Board in developing a plan for rightsizing and reducing the number of school district facilities; I do not support any effort by the City of Pittsburgh, the state financial coordinator, or Secretary Yablonsky to petition the Court for a commuter tax and will oppose this request should a petition be filed with Judge James of Common Pleas or any court of jurisdiction. The Ferlo Plan is the most comprehensive and equitable plan to be introduced to date. I plan to work with the Pittsburgh Mayor Murphy and Rendell administrations and other municipalities to seek reform of the state pension act to ensure equitable distribution to the City of Pittsburgh. The Murphy administration has steadfastly refused to allow me and other state legislators any meaningful input into developing and supporting a financial improvement strategy. I believe that it is important to step forward and make viable proposals to help the city and our region. ### CapNews Guest Speaker: Archives Back to CapNews