PENNSYLVANIA Slots split region's lawmakers along party lines

Some legislators warn that slot revenues won't eliminate the school property tax.
By LAURE CIOFFI and HAROLD GWIN
VINDICATOR STAFF WRITERS
Western Pennsylvania lawmakers are split on the issue of legalizing slot machines to produce tax revenue for the state.
The issue could come up for a vote in April and the local split appears to be down party lines, with Republicans generally opposed and Democrats favoring the plan being promoted by Gov. Ed Rendell to allow slots at eight horse racing tracks and four other slot casino locations.
Lawrence County's three state lawmakers say they favor gambling legislation if it helps reduce property taxes.
"We lose $3 billion a year out of state. What's happening in Pennsylvania is we are getting killed. I don't think gambling will solve all of our problems, but we have to be defensive as well and we need to try to keep the money here," said state Rep. Chris Sainato of New Castle, D-9th.
Sainato said studies have shown that Pennsylvanians spend nearly $3 billion a year gambling in casinos and racetracks in nearby states.
The goal is to create destination spots near Pennsylvania's existing racetracks and two more to be built that will attract people from other states, he said. He said they are also considering gambling parlors that would most likely be in Philadelphia and Pittsburgh.
Local sites
State Sen. Gerald LaValle of Rochester, D-47th, said he will also support slots legislation if it provides money to reduce property taxes.
He believes there is enough support in the state senate if all 21 Democrats vote in favor and six or seven Republicans join in.
LaValle noted that there is a good chance that one of the two remaining racetrack licenses will end up in his district, which includes Beaver and Lawrence counties.
Three companies in the 47th District have applied for racetrack licenses, two in Beaver County -- one near the Pittsburgh International Airport and the other near the Pennsylvania Turnpike and Pa. Route 60 -- and one in Lawrence County near U.S. Route 422 close to the Ohio border.
LaValle said a racetrack with slots could create 700 to 1,000 labor union jobs as well as provide the revenue needed to decrease school property taxes by providing more state aid.
State Rep. Frank LaGrotta of Ellwood City, D-10th said he also believes there is a good chance one of the remaining racetrack licenses -- which would include slots if the legislation is passed -- will end up in Beaver County.
LaGrotta also plans to support legislation that would use money from gambling to reduce property taxes.
"I'm going to vote for it. We need to cut property taxes any way we can," he said.
Opposed
Rep. Dick Stevenson of Grove City, R-8th, however, said gambling "is the wrong way for Pennsylvania to go to raise revenues to offset taxes."
Gambling brings social and personal problems that the state will eventually have to pay for, he warned.
Stevenson said he favors a Republican plan to expand the Pennsylvania sales tax to include things like food and clothing, but dropping the rate from 6 to 4 percent. That would produce enough money to eliminate school property taxes, he said.
Legalizing slot machines won't bring in enough money to eliminate the school property tax, Stevenson said, and Rep. Rod Wilt of Greenville, R-17th agreed.
Property owners would, on the average, see their annual school tax bill drop by only $200 or $300, Wilt said.
Auctioning licenses
Still, Wilt said he would back the slots proposal, provided that the state auction off the slot licenses, not just sell them as Rendell has proposed.
Rendell favors charging a $50 million upfront fee for slot parlors at racetracks and a $75 million fee for each of the four non-track casinos.
Wilt said there is much more revenue to be gained by auctioning the licenses, pointing out that such an auction in Illinois brought in more than $500 million for a single license. He said he would favor slots only at racetracks.
Sen. Robert Robbins of Greenville, R-50th, opposes legalizing slot machines. He said he has concerns about using gambling money to try to cover long-term programs.
Rep. Mike Gruitza of Hermitage, D-7th, said he favors legalizing slots and will push to get one of the off-track casinos in the Mercer County area.
"There are some folks interested in it," he said.
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