Counties begin planning their budgets according to future gambling revenues
A proposed racetrack site is in Mahoning Township, Lawrence County.
GRANTVILLE, Pa. (AP) -- Once gamblers begin playing slot machines at Penn National Race Course, East Hanover Township could get up to half of its $1.8 million budget in gambling dollars to start a police force or prepare its two-lane country roads for a crush of visitors.
Philadelphia's take will be the largest -- an estimated $25 million or more -- although that's a tiny fraction of its $1.4 billion budget.
Some other hosts, such as Pittsburgh, Bensalem and Chester, are guaranteed $10 million. That's less than 3 percent of Pittsburgh's annual budget but a quarter of Bensalem's and nearly a third of Chester's.
"We're going to watchdog this because you can get spend-happy," said Chester's mayor, Wendell N. Butler Jr.
Such is life under Pennsylvania's new gambling law, in which the tools and rewards for enduring increased traffic, trash and crime will vary widely among the state's 12 future gambling destinations that can each operate up to 5,000 slot machines.
Big plans
One of the sites vying for the state's last harness racing track license, and slots as well, is the proposed Bedford Downs track, located off U.S. Route 422 in Mahoning Township, Lawrence County.
Under the law, municipalities hosting slot parlors will receive 2 percent of yearly gross slot revenues from the resident gambling hall, or $10 million, whichever is more. Except for Philadelphia and Pittsburgh, the amount is capped at 50 percent of their budgets this year, with an annual step-up to keep pace with inflation.
Gambling licenses have not been awarded -- it could take a year or so for a yet-to-be formed gambling commission to hand them out. But the law guarantees two gambling halls in Philadelphia, one in Pittsburgh and one each at seven racetracks.
Though mayors and council members can spend the tens of millions of dollars however they want, many are talking first about the need to improve roads and hire more police officers.
Most seem satisfied with what they're getting.
"That is serious new money," said Michael Nutter, a Philadelphia city councilman.
North Strabane Township will get up to $2 million, or 50 percent of its budget this year, which should be more than enough to hire four more police officers and widen two-lane roads and sewer pipelines around The Meadows racetrack, said township manager Frank Siffrinn.
After that, Siffrinn said, he hopes the 10,100-resident bedroom community 20 miles southwest of Pittsburgh can buy new parkland or public works trucks or even reduce taxes.
"Things that you think about doing, you plan on doing, and you dream about doing but never have the financial ability to do," Siffrinn said.
Dissatisfaction
Others aren't so happy.
In East Hanover, about 12 miles northeast of Harrisburg in Dauphin County, Penn National will help pay for some wider roads and new traffic lights. But the 5,300-resident township may need more than 50 percent of its budget to do everything else, especially if the township wants to start its own police force, said town supervisor Becki Oller.
"I think it's a travesty that the bill was passed the way it is," Oller said. "The way it's set up is the county could receive millions of dollars, and there's no impact on the county."
In general, the law dictates that counties also get a 2 percent share of the revenues from the resident gambling hall. The money is either routed into county accounts or redistributed as municipal or economic development grants or a combination, depending on the county.
The handful of senior state lawmakers instrumental in drafting the gambling bill said they capped the municipal share -- except for Philadelphia's and Pittsburgh's -- because they were concerned about towns becoming too dependent on one business enterprise.
Copyright 2004 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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