Government pays for a lot of things people need. Roads. Courts. Schools. These are things that make a community function.
They also pay for things people don’t exactly require but that make society better, such as playgrounds and libraries.
Then there are the things that come in grayer shades. Philadelphia Mayor Cherelle Parker just announced a new agreement for a 76ers basketball arena in Center City. It is sold as an economic boon, but plenty of people push back on the idea of government footing the bill for billion-dollar sports franchises to have glossy new event spaces.
It’s not unique. Cities around the world vie for the Olympics and are willing to pay for the privilege. The same thing happens with other splashy, high-profile opportunities.
For example, Pittsburgh Mayor Ed Gainey has pledged $1 million to prepare for the NFL Draft in 2026.
On the one hand, $1 million is a lot for a city that has been facing increasing alarm over its financial position. Can Pittsburgh afford to pony up that kind of money to the tourism agency VisitPittsburgh when it’s dealing with things such as the disappearing cushion of covid-19 cash and the very real possibility of the tax on professional athletes going away?
On the other, $1 million is not much compared with the $2.3 million the state is forking over to help Oakmont Country Club get ready for the U.S. Open in 2025. The NFL Draft is expected to generate upwards of $120 million in revenue. which will definitely circle back into city coffers via taxes.
But some Pittsburgh council members are dubious — and they should be. Guarding taxpayer money is their job.
Maybe this is an opportunity to bring a perennial problem with city finances into play — the lack of tax money paid by Pittsburgh’s biggest businesses that are also nonprofit organizations that don’t pay taxes. This is exactly the time to corral UPMC, Highmark, the universities, etc., into payments in lieu of taxes to support an event that is not just a public good but also a smart business investment for them all.
Gainey’s administration could take point on coordinating that kind of cooperation. Heck, Mr. Mayor, take the credit for getting it done — but there’s probably a way to find $1 million in the nonprofit corporate couch cushions scattered across the Steel City.
