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ANALYSIS: As a political obstacle looms, Onorato looks to put the onus on Harrisburg

UPDATE APPENDED (see bottom)

The recent state Supreme Court ruling that mandated property tax reassessments across Allegheny County could one day prove to be a major political headache for County Executive and gubernatorial hopeful Dan Onorato, political watchers widely agree. But whether what one analyst called a “death issue” pans out as such will take months to determine.

Onorato has for years been trying to hold the line on property tax increases in the Pittsburgh county, ever since it was a major campaign issue in his successful bid to unseat former County Executive Jim Roddey. Allegheny’s property tax assessment system is widely considered an inequitable mess, a public policy problem that goes back decades and exists across Pennsylvania (Philadelphia is also embroiled in its own assessment controversy). Though reassessments typically yield more equitable tax rates for property owners, they often mean large tax increases for some, a prospect Onorato—already criticized for the alcohol tax he implemented—has worked fiercely to avoid

Now, that effort has run smack into the state Supreme Court, which has ordered the reassessments Onorato is still trying to avoid. But the Democrat who wants to be Governor is seeking to frame the problem as a statewide issue, calling on Harrisburg to institute a uniform property tax system for the state.

“Families across Pennsylvania are worried that unfair property tax increases will make it even harder to stay in their homes,” Onorato said during a visit to Harrisburg last week. “I hope our elected officials will stand with me to make sure that doesn’t happen.”

The issue at hand is complex, involving everything from local and state governance to legal procedure and political maneuvering. It started when property owners in Allegheny County sued over the inequitable state of the assessment system. After the county lost in local court, Onorato made the decision to appeal to the state Supreme Court. While it’s hard to argue he wasn’t trying to protect the interests of his constituents, the appeal, political and legal analysts say, could come back to bite him and his statewide ambitions. That’s because brining the case to the Supreme Court provided a legal path for plaintiffs in other counties to sue and, eventually, get similar rulings for county-wide reassessments.

“He’s going to have to explain to a lot of people why he did this,” Pittsburgh political analyst Bill Green said. “He could have kept it in Allegheny County, but by pursuing this he’s involved the whole state. He’s going to have to answer for that.

“If this thing were threatening to go statewide, that could be a headache all across the Commonwealth,” Green added. “He could hear that everywhere he goes.”

It’s a prospect that government officials in other counties are watching cautiously, though certainly not panicking about yet. The Supreme Court was explicit that its ruling applied only to Allegheny County, but also implied that it would issue similar decisions if cases from other counties made their way up the docket. That could take months if not years, meaning the impact on Onorato’s gubernatorial aspirations could end up muted.

“Every county’s exposed in a way,” said Doug Hill, executive director of the County Commissioner Association of Pennsylvania. “For the most part, I think the rest of the counties would be forced only when someone brings suit. The court’s decision does make that easier, in that the burden of proof shifts pretty substantially to the county to prove that assessments are equitable.”

Even in the face of a Supreme Court ruling order reassessments, Onorato is, for now, not relenting.

“It would be unfair for me to just roll over and do something that will raise the property taxes of the 1.3 million people in this county,” he said recently.

This is why he has sought to make the issue Harrisburg’s problem, one he will surely tell voters he can fix if elected Governor.

“Dan Onorato’s focus right now is on Allegheny County homeowners and protecting them from an unfair property tax reassessment,” said Oren Shur, Onorato’s campaign spokesman. “But clearly this is a statewide issue that impacts families across Pennsylvania. And right now, those families will see that Dan Onorato is standing on their side against unfair property tax increases. Nobody can afford a property tax increase, particularly these days. We need to help people stay in their homes and it’s time for Harrisburg to join in that fight.”

Political analysts say it could be a tough sell.

“This is a very difficult political problem for Dan Onorato,” said Joseph DiSarro, a political scientist at Washington & Jefferson College. “He’s a very skilled politician, but I don’t believe he’ll be able to put this on Harrisburg. Property assessments are a local issues, and invariably local issues are blamed on local politicians.

“This could really sink the ship,” he added.

Policy experts and Harrisburg insiders agree that a statewide fix is needed. Working groups of lawmakers had already been examining the issue, and legislative ideas are in the works, Hill said. States with more modernized systems have typically chosen some kind of statewide uniformity in assessment practices. But there could be little political will in Harrisburg—or anywhere else in the state—to do the same.

“The assessment problem has proved intractable because the political wisdom is that any county commissioners who choose to voluntarily reassess will get thrown out of office,” said Robert Strauss, a professor at Carnegie Mellon University and real estate tax expert who has been a critic of Onorato’s stance on reassessments.

“I really don’t know if that state’s going to do [anything about] it,” Strauss said, “if for no other reason than that it’s an administratively expensive, difficult and time-consuming task.”

Hill said lawmakers tend to “fear that if you pass anything with the word ‘assessment’ in it that you’ll be pilloried.”

For now, Onorato is content to delay implementing the court’s order while he puts pressure on Harrisburg, explores other options and goes on local TV insisting that he’s on the side of homeowners.

“Following this recent court ruling, Dan will do what he’s always done—fight to protect Allegheny homeowners from unfair tax increases,” said Shur, his campaign spokesman.

His strategy makes some political sense, Muhlenberg College pollster Chris Borick said.

“It sure is a time-honored response for local government officials,” Borick said. “It’s always popular for any official to blame the higher level. Every state official blames the federal government and every local official blames Harrisburg.”

In the end, early predictions of Onorato’s political demise could prove quite premature. With the delays being put up, it’s unlikely Allegheny County will have new tax rates before Onorato’s gubernatorial campaign goes into full swing, according to tax experts. And boiling down such a complex issue into a campaign talking point or attack ad would seem a challenge even for the sharpest strategist.

UPDATE: Lawmakers consider a statewide moratorium on reassessments and a related story here.

May 12, 2009 at 9:58 am

--Dan Hirschhorn

Tags: Dan Onorato

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