Onorato defends budget, drink tax
January 15, 2008
The Gold Room of the Allegheny County Courthouse was so packed full of people last night… The Gold Room of the Allegheny County Courthouse was so packed full of people last night during the regular meeting of council that some were forced to stand outside in the hall and wait to enter.
Some in the crowd had gathered to hear Allegheny County Chief Executive Dan Onorato deliver his State of the County Address.
Others were drawn to the meeting by the possibility of the re-opening of the 2008 budget, which includes the controversial 10 percent tax on poured alcoholic beverages and $2-a-day rental car tax.
Onorato was consistently calm while taking an hour and a half to address council and answer questions about steps he’s taken recently with county funds.
On Dec. 31, the county received $19.9 million in gambling revenues from the state.
The Allegheny County Airport Authority owed the county a total of $42.5 million plus interest from 1999.
At that time, the county loaned the authority the money to build a midfield terminal at the Pittsburgh International Airport.
The $19.9 million was part of the payback on the $42.5 million loan.
Republican members from the council have been protesting Onorato’s decision to put the $19.9 million toward the budget deficit, but Onorato said that according to the council’s agreement with the state, the money had to be directed there.
“Where it goes isn’t your choice or mine,” he told the council. “This must go to debt reduction or economic development for the airport.”
Council members also asked Onorato why he hadn’t notified them immediately of the acquisition.
Onorato apologized to the council and explained the situation.
“If you would have been notified at 3 p.m. on Dec. 31, I really don’t think you would have had a debate about the drink tax on Dec. 31,” Onorato said.
“The budget was passed three weeks earlier – your procedures don’t even allow for that type of a meeting. I didn’t know we were getting [the money], so there was no notification defect here other than you might have received a personal call from somebody on my staff saying, ‘oh, by the way here’s what happened.’ OK, I’ll give you that. But it wouldn’t have changed anything.”
When asked what other options there were for the budget deficit, Onorato said it was either a drink tax or a property tax.
“If you would send me a revised budget with the property tax in it, I would veto it,” he said. “I made it clear that I would not raise property taxes.”
Applause arose from the crowd each time Onorato pledged his continuing opposition to the property tax or mentioned his goal of saving the Port Authority.
Onorato also said there were no other options, and he continues to support the drink tax to bring in the required revenue to further balance the budget.
“The budget you all have that I signed has the drink tax and car rental tax,” he said. “And in that budget, we’re projecting a revenue of $32 million, and if that’s repealed we’ll have $32 million less.”
Onorato also said the airport authority is required to pay the county at least $12.4 million a year unless gambling disappears.
Protesters had brushed the dust off of their Stop Drink Tax Now signs for the meeting and held them up as Onorato spoke.
Tom Baron, president of Big Burrito restaurant group – the company that owns Mad Mex on Atwood Street in Oakland – sat in the front row before the council with other restaurant owners who have been protesting the tax along the way.
“I think the fact that there’s still a lot of public pressure – a rebellion brewing so to speak – I think it’s possible to look at other options,” Baron said after Onorato’s address.
“I think [Onorato] heard us,” he said. “Now we want him to go out there and find another solution.”
“I’m hoping maybe one day even some of the restaurateurs might be on our same page,” Onorato said to the council. “Right now, it’s not the legislature’s face hanging out there – it’s mine and a few of yours.”
