Well, the battle is over, at least temporarily. The Pittsburgh mayor has withdrawn his proposal for a tuition tax to address his city's budget challenges. Please appreciate how precedent-setting this proposal was to essentially tax area nonprofit institutions.
But, according to the Pittsburgh Post-Gazzette, "Mayor Luke Ravenstahl yesterday shelved the levy (tax) in favor of pledges of help from universities, tax-exempt organizations and the corporate community. The promised "help" will take the shape of a group appeal to the State for changes in the rules that govern the city's finances in addition to some promised increases in PILOT changes by some of the institutions.
The good news through all this was the coming together of nonprofits throughout the city -- even those who at least on the surface, would not be affected by the proposed tax. Perhaps it was the anticipation that the passing of this tax would lead to additional taxes on nonprofits.
The bad news: Pittsburgh has not solved its fiscal challenges. Nor have the many cities who saw this a reasonable approach to resolving their fiscal challenges.