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Ferlo calls for end to one of city's state overseers
Thursday, November 08, 2007

State Sen. Jim Ferlo called today for the elimination of the state-appointed Intergovernmental Cooperation Authority that oversees City of Pittsburgh finances, a day after Mayor Luke Ravenstahl discussed moving toward an exit from state control.

The city has two state-picked fiscal watchdogs -- the Act 47 recovery team that answers to Gov. Ed Rendell's administration, and the ICA, whose board is picked by legislative leaders and the governor. They were the subject today of a hearing of the Senate Urban Affairs and Finance Committee in City Council Chamber.

"The whole purpose of the ICA is at this point duplicative and wasteful and costly," said Mr. Ferlo, D-Highland Park. "What is the value of even having an ICA board at this point?" He called it a "duplicative overseer layer."

Sen. John Pippy, R-Moon, said he doesn't "foresee any movement to eliminate the ICA board." It serves as the legislature's eyes and ears on the city's finances, he said.

After winning Tuesday's special election, Mr. Ravenstahl said he wanted to get the city out from under state oversight. Wednesday he clarified that, saying he hopes to "ask the state to do an analysis of where we're at, financially" and "see if we do qualify to be removed from financial oversight."

Mr. Ferlo said that if the ICA is still warranted, it should go to the state with recommended changes in laws governing pension aid and contributions from tax-exempt groups to cities.

Mr. Pippy said he will hold hearings on municipal contributions by nonprofit groups, and he believes there will be serious discussion in Harrisburg on pension aid.

City Finance Director Scott Kunka said that if large nonprofit organizations were subject to a tax on payroll, it would add $20 million a year to the city budget.

More details in tomorrow's Pittsburgh Post-Gazette.

First published on November 8, 2007 at 11:35 am