Mayor Bill Peduto, Pittsburgh Public Schools superintendent agree to work on school funding sources
Pittsburgh Mayor Bill Peduto met with Pittsburgh Public Schools Superintendent Anthony Hamlet on Monday, saying he wanted to “clear the air” and offer to help find alternative funding sources for the financially ailing district.
It was their first meeting since Peduto criticized the district over a proposed property tax increase and its call for a takeback of wage tax revenue from the city. The mayor and Hamlet, along with key members of their respective staffs, talked for about an hour in the mayor’s office.
Peduto, who declined to outline exact details of the discussion, said he believes school officials have abandoned the idea of dipping into city wage taxes.
Hamlet did not remain for questions. District spokeswoman Ebony Pugh later said the meeting was “very positive” and that the district welcomed an opportunity to partner with the city in various areas.
“I think first off it was an opportunity to clear the air,” Peduto told reporters. “There had been a lot of public comments that had been made between us and it was an opportunity to sit down and look at ways that we can work together.”
In November, the school leadership talked about a possible 2.3% property tax increase that Hamlet has said is needed to maintain a reserve fund. Peduto responded to questions by calling for a state takeover of school district finances. The district is facing a $27.3 million deficit.
The mayor was particularly irked by the district’s chief financial officer suggesting a takeback of wage tax revenue that was diverted to the city in 2005. The school board is expected to vote Wednesday on a $665 million spending plan that would include the tax hike.
City residents pay a 3% wage tax. Originally, 2% went to the schools and 1% to the city. State officials changed the formula to 1.75% for the schools and 1.25% for the city to address Pittsburgh’s fiscal distress when the city was under Act 47 oversight. Pittsburgh has since left Act 47, but the wage tax distribution has remained the same.
“I believe that there are ways to address the structural deficit other than raising taxes,” Peduto said. “That being said, I did agree to work with the superintendent on finding alternative sources of revenue outside of the specific tax increase or the transfer of the city’s wage tax.”
The mayor said possibilities include foundations and philanthropic sources.
“I do believe the city has a role to play in the development of our children,” he said. “As I said to the superintendent, when they’re in school they’re yours. The rest of the time, they’re mine.”
He said he and Hamlet agreed to meet again during the first quarter of 2020 and he hoped it would turn into a regular quarterly meeting.
“At the end of the day, it’s the children of Pittsburgh that are the mission for both of us, and although we may disagree on the immediacy of the need for financial additions to the school budget, we do agree there are ways that we can work together to make those dollars go further,” Peduto said.
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