Cook proposes eliminating public interest Local Share projects, substituting property tax relief
State Rep. Bud Cook, R-West Pike Run Township, has introduced legislation that, if it became law, would eliminate gambling revenue now earmarked for Washington County Local Share Account projects and instead, distribute the money directly to school districts to be used for property tax relief.
The source of Washington County鈥檚 local share account has been, since 2007, The Meadows Racetrack and Casino. Last fall, county leaders marked the first decade of distributing $88.7 million in local share funds for economic development, infrastructure, job training, community improvement, and other projects in the public interest, such as removing blight.
In a news release Wednesday, Cook, a member of the House Gaming Oversight Committee, said, 鈥淚 am deeply alarmed by the lack of transparency and potential conflicts of interest surrounding the LSA grant program.
鈥淪ince I was sworn in as the representative of the 49th Legislative District in 2017, I have asked many questions. My findings have led me to the realization that reforms are desperately needed to ensure that the LSA grant program is held accountable, while guaranteeing the upmost integrity, fairness, and most importantly, open and transparent allocation of taxpayer dollars.鈥�
Cook is seeking co-sponsors for his legislation.
Washington County Commission Chairman Larry Maggi reacted to Cook鈥檚 proposal Thursday morning after being forwarded a copy of the news release by the Observer-Reporter.
鈥淚t was kind of a surprised when I got your email,鈥� Maggi said. 鈥淚f there are concerns, we鈥檙e trying to improve that local share process every year,鈥� noting that it won accolades from former Gov. Tom Corbett.
He said Cook has not broached the subject with him.
鈥淭he state tells us what to do. We don鈥檛 have a lot of wiggle room. It鈥檚 not walking-around money for anybody.鈥�
The commissioners created an application process through the Washington County Redevelopment Authority, which convenes public hearings before a board appointed by the commissioners evaluates proposals.
The board quizzes project developers about matching funds, known as 鈥渓everage,鈥� and the local share plus additional money has amounted to more than $473.7 million over a 10-year span.
The board recommends a list to the commissioners, who forward it to the Department of Community and Economic Development for final approval.
A overview of the projects over the past decade shows them ranging from the grand scale of Southpointe II roads and infrastructure and development of Alta Vista and Starpointe business parks, to the more mundane sewers and water lines on the local level.
Former state Reps. Jesse White and Brandon Neuman and the late state Sen. J. Barry Stout were once members of the local share account committee appointed by the commissioners. State Sen. Camera Bartolotta, R-Carroll Township, is now a member.
William Sember, director of the Washington County Authority, which oversaw the development of Southpointe II, and Dan Reitz, executive director of the Washington County Council on Economic Development, which has developed Starpointe, have also been on the local share committee, but they say they鈥檝e recused themselves from deliberations on decisions about funding their own organizations.
Each year, the dollar amount local governments, local authorities and nonprofit and nongovernmental agencies seek for local share projects has exceeded the revenue available from gambling at The Meadows.
According to information found on his website, Cook鈥檚 proposed change in the use of Local Share Account funds would not disturb the formula put in place a few years after the program鈥檚 inception that generally grants municipalities $25,000 plus $10 per resident to be used 鈥渇or any lawful purpose.鈥� There are exceptions. Tiny Green Hills Borough has a different formula, and North Strabane Township, as the casino鈥檚 host community, has a separate funding stream.
Philadelphia, Allegheny, Erie and Delaware counties receive money from casinos within their borders directly from the state Department of Revenue, but fourth-class counties 鈥� those the size of Washington 鈥� do not.
Although part of Cook鈥檚 district is in Fayette County, home to the Lady Luck Casino at Nemacolin Woodlands in Farmington, the law establishing the state gaming fund that Cook seeks to amend applies specifically to casinos licensed at harness racetracks in fourth-class counties.
Fayette, like Washington and Monroe in northeastern Pennsylvania, is a fourth-class county according to population, but Lady Luck and Mt. Airy casino in Monroe County were licensed under a later law that applies to hotel and resort gambling.
Since the majority of tax revenue derived from slot machine gaming is currently used to lower property tax bills through the homestead/farmstead exemption program, Cook鈥檚 legislation would increase the funds available for participating homeowners in Washington County.
鈥淲ithout 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,鈥� Cook said in a news release.
鈥淲e 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.鈥�
Washington County is waiting to hear from DCED about the latest round of local share funding, pegged at $7.4 million proposed to be divvied among 40 proposals.