Staff writer
State legislators made a case Tuesday to change the way Washington County distributes the local share of slot-machine revenues from The Meadows Racetrack & Casino.
They proposed using a third for economic development projects, a third for water and sewer projects and a third for capital projects in 66 of the county's municipalities, exempting North Strabane Township, which has a unique revenue stream as host municipality of the casino.
The legislators' proposal will not take effect if two county leaders have their way. County Commission Chairman Larry Maggi and Commissioner Diana Irey favor using the local share to reduce county taxes for each property owner by 47 percent.
Maggi called his counterproposal "an economic stimulus program for Washington County."
The 2004 law legalizing slot-machine gaming in Pennsylvania calls for counties the size of Washington to use the money, estimated at $12 million next year, for "economic development projects, community improvement projects, job training, other projects in the public interest and reasonable administrative costs."
Maggi, however, focused on a paragraph that states, "Nothing ... shall prevent any of the above counties which directly receive a distribution ... from entering into intergovernmental cooperative agreements with other jurisdictions for sharing this money."
The "intergovernmental cooperative agreement" would be between Washington County and the Department of Community and Economic Development, which holds a special account for the county's local share and has the final say in distribution of the money. The fund totaled just over $8 million from June 2007, when the casino opened, to March 31 of this year. That money was allocated to 25 community development projects announced in late June.
Kevin Ortiz, spokesman for DCED in Harrisburg, could not immediately be reached for comment on Maggi's proposal.
The commission chairman turned the tables on the legislators, saying, "The Legislature has been promising tax relief for years and not delivering."
Washington County's tax levy is 21.4 mills, and Maggi's proposal would cut property taxes by nine mills, with the slots money filling the gap in the general fund.
Irey, who left for an appointment after spending about 20 minutes with the legislators, was reached after the nearly two-hour meeting. She said she would like to see the issue reconsidered in the Legislature or placed on the ballot as a referendum question.
"What we hear from everybody is how they're so taxed," Irey said, citing record-high gasoline prices and skyrocketing grocery bills. "People need some sort of relief. If this is an opportunity to provide relief to the taxpayers, I think it's an opportunity we should take advantage of."
Commission Vice Chairman Bracken Burns, reached by phone later Tuesday, said, "I think the political pandering got a little carried away today. People were outpandering each other.
"What about a check for $1 million to every voter in Washington County? If you can't pick up on the sarcasm, then I could spell it out for you. The law was, to me, clear and well crafted. Let's take this money, and let's create jobs and economic development.
"We took the professionals in the economic development community, and we put them around the table and said, 'Do your job.' Except for criticism from the news media, I think we did a pretty good job."
Burns also said the DCED lauded the county's process and wished every county in Pennsylvania would follow Washington County's lead.
"Fast-forward, and we're called on the carpet by the legislators who wrote the law? I don't get it," Burns said.
Presenting the legislative delegation's proposal was State Rep. Jesse White, D-Cecil, who was appointed by his peers to serve on the local share committee. The legislators have devised what they called the Hometown Project Fund.
White said municipalities, in a series of public meetings held last spring around the county, expressed concern about being unable to compete with large economic development projects.
"With many, if not most, municipalities planning on applying for funds in 2008, the potential for even greater discontent is clear," White said Tuesday.
The Hometown Project Fund would grant $235,152 to Peters Township, Washington County's largest municipality with 19,927 residents, according to the most recent census data. Washington would receive $182,107, and Canonsburg would get $121,024.
Tiny Green Hills Borough would receive $30,477, while little West Alexander and West Middletown boroughs would be limited to 50 percent of their budgets, both in the $30,000 range.
The legislators also recommended that members of the township supervisors' association and boroughs association choose representatives to the local share committee.
"Based on the large role they play both as an applicant and in an administrative capacity, we strongly recommend that the Washington County Redevelopment Authority no longer be represented on the local share review panel in determining which applicants are to be funded," the legislators wrote in their proposal.
State Rep. David Levdansky, D-Elizabeth, raised the issue of the appearance of conflict of interest, asking, "Isn't it like someone grading their own work?"
Burns objected, saying, "These are people of integrity. I find it a bit insulting to their professionalism."
White said the legislators had met with representatives from DCED who gave their blessing to the delegation's proposal.