Thursday, July 05, 2007
Will RAD Dollars Get Stretched Even Further?
The House Urban Affairs committee recently passed a measure that would allow southwestern Pennsylvania’s tourism agency, Visit Pittsburgh (formerly the Pittsburgh Convention and Visitors’ Bureau) to become a contractual asset of the Regional Asset District and beneficiary of 2 percent of the RAD share of the 1 percent sales tax.
As it is presently constituted, one half of the proceeds from the 1 percent levy goes to the Regional Asset District for support of cultural, educational, and recreational venues. There are contractual assets—the zoo, aviary, parks, the stadiums, and libraries—that are guaranteed money. The District also has annual allocations that can make to other, non-contractual groups.
The bill passed by the committee would essentially make Visit Pittsburgh another contractual recipient, but by doing so it would take dollars from other grantees. Since the tax has remained relatively flat at $145 million (1/2 going to the District), giving a share to another agency has raised concerns from the District’s leadership and area lawmakers.
Some of their frustration ought to be directed at the region’s boosters who pushed for a bigger convention center, and a new one at that. As a result, more of the county’s hotel tax is being dedicated to debt service, which leaves less for tourism promotion. If any organization should understand a new item siphoning off available funds, it would be Visit Pittsburgh. (In fact, RAD made an allocation to the Convention Center, for operations, in 2006).
And since this change comes on the heels of a recent proposal to shift some sales tax money to the Port Authority, the battle over dollars will likely become fiercer in the coming years.
As it is presently constituted, one half of the proceeds from the 1 percent levy goes to the Regional Asset District for support of cultural, educational, and recreational venues. There are contractual assets—the zoo, aviary, parks, the stadiums, and libraries—that are guaranteed money. The District also has annual allocations that can make to other, non-contractual groups.
The bill passed by the committee would essentially make Visit Pittsburgh another contractual recipient, but by doing so it would take dollars from other grantees. Since the tax has remained relatively flat at $145 million (1/2 going to the District), giving a share to another agency has raised concerns from the District’s leadership and area lawmakers.
Some of their frustration ought to be directed at the region’s boosters who pushed for a bigger convention center, and a new one at that. As a result, more of the county’s hotel tax is being dedicated to debt service, which leaves less for tourism promotion. If any organization should understand a new item siphoning off available funds, it would be Visit Pittsburgh. (In fact, RAD made an allocation to the Convention Center, for operations, in 2006).
And since this change comes on the heels of a recent proposal to shift some sales tax money to the Port Authority, the battle over dollars will likely become fiercer in the coming years.
