PITTSBURGH -- The Port Authority of Allegheny County is wasting money and should overhaul its board of directors to protect taxpayers' cash, according to an audit released Monday by state Auditor General Jack Wagner.

Since state taxpayers fund the majority of the Port Authority's budget, the governor and the general assembly should get the power to appoint four of the board's nine members, Wagner said.

Wagner has been releasing his audit findings in pieces over the past year, and this latest release came one day before the county council is scheduled to vote on a new tax on alcoholic drinks and rental cars that would help fund the Port Authority.

The plan, backed by county Chief Executive Dan Onorato, would fund the county's $30 million Port Authority subsidy with a 10 percent tax on poured drinks and a $2-per-day tax on rental cars.

Wagner said he is against the proposal, and he doesn't think the county needs new taxes.

"Any time you create a new tax -- and in this case, it's two new taxes that other counties don't have -- you're in essence saying to people who live here and are doing business here that there's a better location not far away," Wagner said.

Onorato has said he will not release funds from the new tax to the Port Authority until the authority restructures its union labor costs.

Wagner did not look at labor costs as part of his audit. His focus was on management, including large bonuses and pensions for executives, and the Port Authority's refusal to promise to move back to its old offices in Manchester instead of renewing its current downtown lease.

Port Authority CEO Steve Bland said the old headquarters need to be renovated.

"You're looking at probably $10 million to $15 million of expense to move back to Manchester," Bland said. "That's $10 million to $15 million we don't presently have."

Wagner said the news conference he held on Monday was not timed to influence Tuesday's tax vote by county council.

In response to Wagner's audit, Onorato released the following statement:

"Over the past year, Port Authority management has taken significant steps to improve its fiscal house, including layoffs, pay freezes, benefit changes and fare increases. In the coming months, Port Authority will take additional steps to further reduce its legacy costs. I will also continue to work with state officials to get their input on appointments to the Port Authority Board of Directors."

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