Pittsburgh’s Pension Solution: Between a Rock and Hard Place

In last week’s Policy Brief (Volume 10, Number 37) we showed that the proposal to lease Parking Authority facilities as a means to raise $200 million for Pittsburgh’s pension funds would require-at a minimum-a near doubling of the cost to park at the lessee’s garages, lots and meters.  Factoring in inflation, the hikes in cost to park necessary to make the lease a break even situation for the lessee could exceed 100 percent in four to five years.  Clearly, there is a high probability such large increases in parking rates at the Parking Authority’s spaces will be a major deterrent to parking in the City.  Many businesses would suffer, creating further, and possibly irreparable, economic damage to Pittsburgh’s already beleaguered private sector.  And that in turn will reduce the City’s tax base, something it can absolutely not afford.

 

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