Oversight with LSA process is something to consider in every county, say lawmakers
While the area’s state lawmakers are generally pleased with how gaming money has funded local projects, several said additional oversight of how it’s done couldn’t hurt.
In April, state Rep. Bud Cook, R-West Pike Run Township, released an open letter to state Auditor General Eugene DePasquale, asking him to review how the Local Share Account (LSA) money is doled out, specifically in Washington County.
LSA funds take 2 percent of gaming revenue from casinos in a county, and distributes that money to be used for local projects. A designated county agency or board typically decides who receives requested funding.
In the letter, Cook, a member of the state House Gaming Oversight Committee, said his concerns include nonrequirements of voting records or meeting minutes regarding funding votes, that committee members do not complete an ethics statement regarding potential conflicts of interest, and there are not term limits for those who distribute the funds.
“Without establishing this type of reform, major concerns will remain regarding conflicts of interest, special interest earmarking of funds or insider deliberation of projects in advance of the grant presentations,” Cook wrote. “We owe it to the taxpayers we represent to ensure that LSA funding is allocated with integrity, transparency, and above all, that projects are funded based upon their value to our communities and the opportunities to improve the quality of life for all.”
Michael Gerber, the press secretary with the Pennsylvania Department of Community and Economic Development (DCED), which developed the LSA program, said eligible entities and use of funds for the LSA program were determined in the statute, but the DCED and the counties then collaborated to develop local guidelines.
“In the cases of Washington and Fayette counties, they both requested that DCED consider allowing the counties to set up a local process in which a group of local stakeholders representing eligible entities would review projects locally and recommend projects to DCED for consideration,” Gerber said.
According to the LSA guidelines for both counties, the only difference of eligible use funds between Fayette and Washington counties is that Washington’s guidelines allow funds to go toward job training. Both counties have eligible uses for economic development projects, community improvement projects and projects in the public interest.
State Reps. Matthew Dowling and Ryan Warner said results of the program are positive, but there should always be accountability.
“Fayette County has certainly benefited by the LSA program and has seen a fair share of local public safety projects funded as a result of gaming revenues collected statewide,” said Dowling, R-Uniontown. “That being said, it’s never a bad idea to ensure accountability and transparency exist in the distribution process.”
“I believe it’s always a good idea to have more oversight in how public money is spent, so I would certainly support the auditor general taking a look at the LSA process,” said Warner, R-Perryopolis.
However, Warner said, a bigger concern for him and those he represents is how little of the promised property tax relief has actually been provided to citizens since casinos were authorized in Pennsylvania.
Gary Miller, the press secretary for DePasquale, said the department has responded to Cook that they are aware of his concerns.
“A closer review is under consideration and dependent on the availability of audit staff,” stated Miller.