By Kevin Zwick , Staff Reporter
CAPITOL WIRE: Talk of the Senate moving forward on a lottery privatization proposal before Christmas break is less likely, as a top Senate Republican says a lack of public hearings on the proposal is a concern among GOP senators.
“Right now, the odds of us taking this up tomorrow are slim,” said Senate Majority Leader Dominic Pileggi, R-Delaware, “but I don’t want to rule it out completely.”
“One of the issues is whether we should be having these issues more publicly aired over a period of time, later in December and January, and that’s one of the sentiments that was expressed today and one of the reason we’re not taking action today,” Pileggi said after a Senate Appropriations meeting Monday evening. The Senate is in session Tuesday and Wednesday of this week, and won’t return until January.
Pileggi believes there is “broad support” in the Republican caucus for expanding lottery games and allowing the governor to contract with private companies for marketing and management to the Lottery system, not full privatization.
He said conversations between the Corbett administration and the American Federation of State, County and Municipal Employees union is something that the members want more details about too.
The union and the administration reached a tentative agreement to keep the 170 or so unionized Lottery workers employed, according to a Pittsburgh Post-Gazette report from last week. The deal with Camelot Global Services LLC, the firm that won the bid last year and committed to generating $34 billion over a 20-year contract, would have led to the loss of the unionized state jobs. The union sued the administration in an attempt to thwart the contract last year.
There’s some concern among Senate Republicans about saturating the gambling market in Pennsylvania. Gov. Tom Corbett recently approved a bill to allow taverns to offer patrons so-called small games of chance, which had been exclusive to private clubs, while the commonwealth already boasts the second-highest gambling market next to Nevada. But Pileggi said those concerns are not enough to overthrow the proposal.
And a tough budget next year has lawmakers scrambling for new revenue without raising taxes.
“Well it’s no secret we have a very difficult budget in the upcoming year and the addition of Keno-style games and the addition of a different management practices are projected to provide additional revenue that could provide a relief to the general fund, so that’s definitely a factor,” Pileggi said.
Lawmakers are taking extra care not to encroach into casino revenues, which could trigger a legal reaction. Pileggi noted the proposal being discussed is designed “in way that would not overlap with the games provided in the licensed casino facilities.”
Pileggi said if Keno were approved, a portion of the revenues would go toward a property tax freeze for senior citizens.
“Anybody under the age of 67 will take a hit, a property tax hit, at the expense of people over 67, so there’s concerns about the costs associated,” said Senate Minority Leader Jay Costa, D-Allegheny, during a briefing with reporters Monday morning.
Costa also said the proposal is shaping up to be “materially different” than what was initially approved during the procurement process and it warrants a re-bidding of the proposal.
“There are other people who would bid had they known the same circumstances as they may exist under this legislation and should have been given the opportunity to participate in the bidding process,” he said. Two other companies bid on the proposal last year, but backed out before the administration chose Camelot.
If the unlikely vote to move the proposal forward is to occur this week, an amendment would be adopted to Senate Bill 1009.
