State Representatives Jerry Stern and Larry Sather both voted “no” to slots legislation passed by the State House early Sunday morning.
Last week, their Senate counterpart, Robert Jubelirer, (R- Blair) also voted against the Senate version of the bill. Governor Rendell signed the legislation into law this week.
The effects of the legislation including the benefit of property tax reduction or the social ills gambling could induce may not be felt for at least a year or more. However, lawmakers throughout the commonwealth, including those locally, are expressing their thoughts on the fallout from the legislation.
“Taxpayers lose,” said Representative Stern, (R-Blair), in comments on the house floor Saturday night. “By promising a few hundred dollars in tax reduction and passing a bill that provides referendum, these slick negotiators have temporarily provided a few crumbs for the tax-reform starved Pennsylvania property owner.
Stern said he believed “certain campaign coffers would overflow with gambling money” while “the ordinary taxpayer will continue to get hammered by state government and be asked to pay for the social problems that will naturally follow.”
He noted the legislation recognizes social problems will occur and a section of the bill sets up a compulsive and problem gambling program. A treatment fund will also be established as authorized by the legislation.
“We now will treat your addiction that we have created for you,” said Stern. “That…in essence is what the gambling industry is stating with this message.”
Stern noted $1.5 million is set aside to help deal with addicted gamblers, he doesn’t think the amount is nearly enough.
“(It) will never cover the emotional and behavioral problems and scars associated with this addictive vice considering the billions that will be generated at the expense of those who lose,” said Stern on Saturday.
Stern also expressed concern about the slot parlors being allowed to offer drinks either free or at reduced prices.
“We are going to encourage people to drink, lose their money and then send them home with a pat on the back and say, ‘that’s too bad,’” Stern told The Daily Herald.
“We spend millions, nearly 100 million dollars just in Drug and Alcohol Treatment programs in this Commonwealth to deal with those who have addictive problems,’ said Stern. “This bill admits that we are creating more addictive problems and the gambling interests are willing to set aside a mere $1.5 to deal with this problem.”
Stern said the legislature will be back to deal with the social issues related to gambling including a rise in suicide and domestic violence as well as marital and child welfare issues.
“This is poor public policy,” concluded Stern.
Rep. Sather, (R-Huntingdon) also expressed concern about the potential social ills, a lack of true property tax reform and the possibility of corruption by public officials.
I voted “no without reservation,” said Sather. “I don’t think any public official should be able to have an interest in the gambling industry. “In other areas that have gambling this has come under severe scrutiny.
“The legislation leaves room for mischief in regard to a gambling board or commission and what it can or cannot do,” said Sather. “It’s self-perpetuating, there is not enough legislative oversight.”
According to an Associated Press article, in an attempt to address the issue, Governor Rendell signed an executive order Monday prohibiting administration officials, state police, Revenue Department officials and others from holding financial interest in the gaming industry. The law allows members of the House and Senate to own up to 1 percent interest in a company with a slots license.
On the tax reform issue, Sather made it clear he doesn’t think the legislation will provide enough to really help taxpayers.
“It’s not tax reform, it’s barely tax relief,” Sather told The Daily Herald. “First, money is allocated to Pittsburgh, Allegheny County and Philadelphia (for economic development that’s taken off the top before any money is used for tax relief.”
Sather said for some of the schools in his legislative district, the estimated savings for property owners amounted to $100 to $200 a year.
Sather also spoke about the social ills related to gambling on the house floor.
“We’ll pay out ‘good’ dollars to deal with the social ills of gambling,” said Sather.
The Associated Press reported in a story last week, Senator Jubelirer opposed the bill. He said the idea of raising revenue from gambling is predicated on most people losing money, not winning.
“We must addict tens of thousands of Pennsylvanians who have to lose to make this work,” Jubelirer said during Senate debate last week. “I’m not sure that’s such good economic policy.”
According to the Associated Press, the bill authorizes a gambling commission to issue 14 slots licenses to resorts, racetracks and other sites around the state. At the maximum of 61,000 machines, Pennsylvania would have more slot machines than any state besides Nevada.
Along with the slot-machine legislation, Governor Rendell signed a companion bill Monday that finances $1 billion a year in property-tax relief. The initial benefit to property owners wouldn’t be seen until at least 2006 to allow for the licensing process and for the slot parlors to begin operation
However, Stern indicated it wouldn’t happen until at least 2007 and indicated he was disturbed the state will actually borrow against future gambling revenues to institute the tax relief measures.
