Governor says that will happen without passage of table games
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December 18, 2009
HARRISBURG -- Table games or 1,000 layoffs.
That's the choice Gov. Ed Rendell is giving state lawmakers who left Harrisburg yesterday without passing new gaming legislation and with no plans to return until Jan. 5.
If they don't resolve a stalemate over the bill by Jan. 8, Mr. Rendell says he will have to lay off 1,000 state workers.
"The consequences are dire if we don't pass this," Mr. Rendell said at a news conference yesterday.
The controversial bill would allow poker, blackjack and other table games in Pennsylvania's slots casinos.
The governor is counting on those games to bring in about $200 million a year in state revenue generated from taxes and licensing fees.
House Republicans called the threat of layoffs empty and unnecessary.
They said Mr. Rendell can fill the budget gap through less aggressive cuts and use of surplus funds.
In any case, Mr. Rendell can't be expecting that revenue to appear this fiscal year because it will take months for casinos to get table games and train dealers, said Minority Whip Mike Turzai, R-Bradford Woods.
Meanwhile yesterday, Mr. Rendell signed a bill releasing $657 million in state subsidies to the University of Pittsburgh and other state-related universities. He previously said he would delay signing until the gaming bill passed but changed his mind when universities said the withholding would put their federal stimulus money in jeopardy.
While he provided full funding to the four state-related schools, he used line-item vetoes to cut by 50 percent funding for hospitals, museums and smaller schools that also receive subsidies through that bill. He said he hoped to restore funding if the gaming expansion passes, which would allow the state to begin collecting additional revenue from taxes and fees on table games.
The Children's Institute of Pittsburgh is among those losing 50 percent of state funding. The hospital was expecting $431,000 in state funding but instead will receive $215,000. Others losing half their state subsidies include Drexel University, Philadelphia University of the Arts, the Children's Hospital of Philadelphia and the University of Pennsylvania Museum.
House Republicans say it's unfair to threaten jobs of state workers, just as it has been unfair to students to withhold money from their schools.
"It's been the position of House Democrats and the governor to always present a new hostage" in their quest to advance their legislative agenda, said state Rep. Mike Vereb, R-Montgomery. "Let's work together to get this done and not take any more hostages."
His caucus has been largely opposed to the addition of table games to Pennsylvania casinos. Members say they first want to address reform issues, including a proposal to give state police or the attorney general the power to enforce gaming laws. Currently, that power rests with the state Gaming Control Board.
House Republicans also are concerned that casino revenue would go to lawmakers' pet projects instead of to broader property-tax relief, which the initial gaming law promised to provide.
The distribution of revenue "puts a taint on the entire legislation," Mr. Turzai said.
The Legislature has been wrangling over the legislation for months.
The House narrowly passed a bill Tuesday that would allow for table games and increase the number of resort casino licenses from two to three. Wednesday, however, the Senate amended sections of the bill that changed the distribution of revenue and the number of resort licenses.
House Democrats called those changes untenable and did not bring the amended bill up for a vote in their chamber yesterday.
Tracie Mauriello can be reached at tmauriello@post-gazette.com.
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