Thursday, November 30, 2006
The RAD Board is Rejoicing: Why?
The Regional Asset District (RAD) Board is happy. Their revenue from the County’s local option sales tax is expected to reach $76.5 million--$1.2 million higher than the 2005 level. As a result, the County’s parks, libraries, and other cultural and recreational venues will be funded and some new recipients—including the Convention Center—will partake of the bounty. And a big part of the reason the Center is getting some money is that the RAD Board’s funding for debt service at Mellon Arena has dropped from last year.
But a quick review of the RAD’s historical numbers reveal that the 2007 projected sales tax amount is only $3 million higher than where it stood in 2000, when it was $73.5 million, the previous record year. Consider what we have had in the intervening years: several Steeler playoff games, an All-Star baseball game, conventions and trade shows, the Bass Master competition, a plethora of new retail and eating establishments, including mega-malls like Pittsburgh Mills, South Side Works, Mt. Nebo Pointe, the Point at North Fayette, etc.
All those new venues and all that activity and all we have to show for it is a 4 percent boost over 2000 levels. Far from a strong showing. If sales tax receipts had matched the growth in the Consumer Price Index for the Pittsburgh area since 2000 (16% through the first half of 2006), then the RAD board would be distributing closer to $85 million this year. Instead, receipts are well below that and, if the present trend holds, will show paltry growth next year. And with no boost from an All-Star game, no Steeler playoff games, and no new big mall opening to give a temporary boost to sales, 2007 could see flat revenue numbers.
Thus, the RAD Board’s jubilation is very premature.
But a quick review of the RAD’s historical numbers reveal that the 2007 projected sales tax amount is only $3 million higher than where it stood in 2000, when it was $73.5 million, the previous record year. Consider what we have had in the intervening years: several Steeler playoff games, an All-Star baseball game, conventions and trade shows, the Bass Master competition, a plethora of new retail and eating establishments, including mega-malls like Pittsburgh Mills, South Side Works, Mt. Nebo Pointe, the Point at North Fayette, etc.
All those new venues and all that activity and all we have to show for it is a 4 percent boost over 2000 levels. Far from a strong showing. If sales tax receipts had matched the growth in the Consumer Price Index for the Pittsburgh area since 2000 (16% through the first half of 2006), then the RAD board would be distributing closer to $85 million this year. Instead, receipts are well below that and, if the present trend holds, will show paltry growth next year. And with no boost from an All-Star game, no Steeler playoff games, and no new big mall opening to give a temporary boost to sales, 2007 could see flat revenue numbers.
Thus, the RAD Board’s jubilation is very premature.
