Drink Tax Not Enough for Port Authority

PITTSBURGH -- One day after the Port Authority announced massive cuts, Channel 11 News looked into why the Allegheny County drink tax wasn’t enough for the organization.

Allegheny County Chief Executive Dan Onorato imposed the highly controversial 7 percent drink tax in December 2007. He said it was a necessary move to keep Port Authority buses rolling in and around the city. The tax outraged thousands of business owners and taxpayers.

According to Port Authority officials, they received $55.1 million from the drink tax so far. It’s expected that they’ll receive an additional $22.7 million by the end of this year for a total of $82.8 million over three years. That includes $27.4 million in 2007-2008, $27.7 million in 2008-2009 and $27.7 million in 2009-2010.

Prior to the drink tax, Port Authority officials said the company received about $25 million from the county, so their net increase is about $2 million a year under the drink tax.

Port Authority officials said their operating deficit in the current budget is $47.1 million, most of which is attributed to the statewide Act 44 transportation dollars shortfall.

Tax payers that spoke with Channel 11 News said they're outraged by the management of PAT.

“Well, I feel that there is mismanagement on their behalf,” said Pittsburgh resident Charles Jackson.

“I just think it’s ridiculous,” said Shelly Tiwary. “I don’t think that Dan Onorato really knows what he's doing. I think that’s kind of why Tom Corbett is in the lead right now in the polls.”

“If it’s not helping anyway for the people that need it, then what’s the purpose of it? What’s the purpose of me paying my money,” said Joseph Budz.

A local restaurant association that opposed the tax last year said the Port Authority needs to better manage what they have.