When I moved to Washington from Allegheny County over twenty
years ago, I would often comment on how things were done differently by our
northern big brother. I quickly learned that such advice was unwanted. The local
political and legal communities were opposed to an implant from Allegheny County
making suggestions. Washington County has always valued its independence.
The discourse on how the two counties differ continues full
throttle today. The Washington County Republican Party often uses the
progressive political and social programs in Allegheny to provide contrast with
the conservative political climate in Washington. By local Republican
reckoning, a short thirty-minute drive down Interstate 79 permits a family to
escape the out-of- control taxes, crime, and “socialist” governments of
Pittsburgh and Allegheny.
In reality, the importance of Allegheny County to the surrounding
communities cannot be overstated. Allegheny is the second-most populated
county in Pennsylvania. The Pittsburgh International Airport connects the
region to the world. Allegheny County is home to three major
universities. It is a major media market and the economic engine for all of
Western Pennsylvania. Pittsburgh is the home of several major sports franchises
and year-round cultural events.
Local Allegheny County detractors want to share in these
benefits while complaining about the issues faced by a more populated urban area.
I do not know of many Washington residents moving to communities that are more
rural to escape the opportunities made possible by Allegheny County.
Allegheny County is now undergoing major transformations, and
Washington County should pay attention. If Allegheny catches an economic cold,
the surrounding counties will be sneezing in no time.
The Missing
Office Workers. The pandemic had a profound effect on office space in major
urban areas, and Allegheny County was no exception. Thousands of employees
learned the benefits of working from home. They convinced their employers to
adopt hybrid work models that require less office space.
Major corporations and other users of downtown Pittsburgh’s
offices have not renewed leases, and there is a glut of unused space. According
to the Pittsburgh Post-Gazette (the PG), “As of April 3, 2024, 17 tenants have moved out of
downtown Pittsburgh since 2020,
while only eight have moved in.” Pittsburgh is considering tax abatement plans
to encourage conversion of downtown office buildings.
Ironically, Pittsburgh
is not becoming a ghost town. Everywhere you look, new residential buildings
are springing up. The area surrounding downtown is transitioning from its
traditional role as a business and office center into a residential and
entertainment district. According to TribLIVE, “National retailers such as
Target have moved in downtown and are exceeding sales predictions, and a slew
of development projects are in the pipeline.” The final enticement is the
vibrant restaurant scene, where every type of cuisine is represented.
In
Washington County, Southpointe has also suffered from lost office workers. Range Resources, the anchor of this Washington
industrial park, recently announced it is seeking a new campus with less office
space. Previously, Crown
Castle, which has one of the largest workforces in Washington
County, announced plans to leave Southpointe. As
of March 13, there were 75 listings for lease in the 15317 zip code. Unfortunately, Southpointe cannot as easily reinvent itself
as sections of Pittsburgh have accomplished.
The Crumbling Tax
Base. A major issue facing Allegheny County is its disappearing tax base as the
empty downtown office buildings are reassessed at lower values. The PG recently
reported that overall reductions “will reach a half-billion dollars before all
is said and done…. School district officials have estimated that they could
lose $6.7 million in tax revenue and potentially pay out $13.4 million in tax
refunds for 2022 and 2023.”
The Pittsburgh Public Schools cannot afford refunds and lost
revenue. The district has sued to force a countywide reassessment of all real
estate. While no public official wants the expenses and voter pushback of a
major property reassessment, the lawsuit will be successful because the
existing system from 2012 is plagued with inequities. In addition, the
Pittsburgh Mayor’s office is considering plans to tax non-profits to raise
revenue.
Washington County is not yet in a crisis, but its last
assessment was completed in 2015. To
avoid violation of the uniformity clause of the Pennsylvania Constitution,
there should be a new assessment completed every three to four years.
Now is the time to reform reassessment. Washington should work
with Allegheny and other counties to push for a state-mandated, regularly
occurring reassessment process that avoids a major tax dilemma every few years.
A Tale of Two
Cities. The cities of Washington and Pittsburgh have elected Black mayors
for the first time in their histories. Both cities account for a large share of
the minority population within their respective counties. Both cities struggle
with inadequate tax bases compared to the much wealthier surrounding
communities. Both cities provide a number of countywide services that are taken
for granted by those living outside the city. Both cities will soon require
financial assistance from their county at large, or the state, to remain
viable.
It is true that the new progressive leadership in Allegheny
County and Pittsburgh have placed a premium on programs to improve citizen
equality over economic growth that only favors the wealthy. Washington’s
conservative Republican commissioners have adopted the opposite priorities.
However, the two counties remain economically connected. We
need to put politics aside and collaborate to improve the region.
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