Senator Larry Farnese and Representative Mike O’Brien Denounce Sen. Earll Legislation Withholding Funds for Development Projects Until Slot Casinos Get Up and Running

April 20, 2009 - Sen. Larry Farnese (D-1st) and Rep. Mike O’Brien (D-175th) denounced legislation moved out of committee today by an Erie legislator attempting to withhold funding from Philadelphia until the City's two casinos are up and running. Farnese and O'Brien believe the measure unfairly targets Philadelphia and would jeopardize hundreds of existing jobs.

Senate Bill 200 would require the Pennsylvania Gaming Economic Development and Tourism Fund to withhold moneys that fund development projects until the “two Category 2 licensed facilities within a city of the first class … are operating and generating gross terminal revenues.”

The bill was approved by the Senate's Community, Economic, and Recreational Development Committee at a vote taken earlier today, even though no hearings were ever held on the bill. Republican state Sen. Jane Earll of Erie County is the sponsor of the measure and majority chair of the committee.

“Sixty counties throughout Pennsylvania benefit from tax relief generated by gaming revenues – and they don’t even have a single casino,” explained Sen. Farnese. Farnese says the measure targets and jeopardizes major projects in Philadelphia like the Convention Center expansion, where hundreds of workers are now employed in construction jobs.

Farnese and O'Brien also question whether the bill's objective is even legally feasible.

“The lack of process is appalling,” observed O’Brien. “Sadly, in the sponsor’s rush to punish, this Bill has placed the fragile financial well-being of the Commonwealth in peril.”

Farnese and O’Brien, whose Districts include the Pennsylvania Convention Center, noted that the Center expansion is not owned by the City of Philadelphia, but by the state. Ultimately, failure to meet its contractual obligations would not affect the City of Philadelphia but rather the Commonwealth.

###