Silliness on the Susquehanna

Proposed borrowing on slot revenues a real gamble

Just when you thought the silliness on the Susquehanna couldn’t possibly get any worse – it does. It isn’t bad enough the Rendell Administration and the General Assembly have already conspired to enact a massive tax hike, and to borrow future generations into heavy debt, now they want to borrow against a revenue stream that doesn’t even exist yet.

State Senator Tommy Tomlinson of Bucks County is floating the idea of borrowing, perhaps as much as $1 billion based on projected (emphasis on the word projected ), tax receipts from as-yet non-existing gambling revenue. The borrowed funds would provide early rebates to property taxpayers, and also go to pay for various projects in Pittsburgh and Philadelphia .

The key here is to provide money for various projects in Pittsburgh and Philadelphia . Tax relief has been the canard used by gambling expansion proponents throughout this debate to cloak themselves in an aura of respectability. Tomlinson’s plan strips away this mask and reveals the entire pro-gambling drive for what it is: a means of funneling more taxpayer dollars into big government projects while simultaneously greasing the palms of special interests.

For example, Tomlinson says the borrowing scheme would provide money for the convention center in Pittsburgh and to the Sports & Exhibition Authority. Public dollars have, against the referendum-expressed wishes of taxpayers, already funded projects such as Heinz Field, PNC Park , and the convention center. This raises the issue as to why some legislators now feel even more money is needed.

This is the first time gambling expansion proponents have publicly admitted that proposed gaming revenue would be used for anything other than property tax relief. It is only amazing that it took this long for other fingers to be put into the proposed new revenue pie.

And, while we’re on the subject of revenue, it should be pointed out that Tomlinson’s proposed borrowing would be based on a revenue stream that does not now, nor has it ever existed. That means no track record. And, the projected proceeds from gambling, more than currently being generated in Nevada and New Jersey , are about as flawed and unrealistic example of fiscal jujitsu as you could imagine.

There is some sanity in the process. State Senator Robert Thompson ( R-Chester County ) is Chairman of Senate Appropriations Committee. He told the Pittsburgh Tribune-Review that Tomlinson’s proposal was “bad public policy to be borrowing against an unknown quantity” and that “to go out and borrow against (slots revenue) is really gambling.” Thompson further hit the nail on the head labeling the plan: “Irresponsible.”

“Irresponsible” is about the kindest thing that can be said about the Tomlinson proposal. Since the Governor’s office has labeled the idea “an interesting concept” you can bet behind the scenes the wheels are moving in high gear for another last-minute raid on the public treasury.

This time the tax, borrow, and spenders are outdoing themselves. You have to give them credit, just when you think they can’t possibly come up with a way to fleece the taxpayers more, they do. Borrowing against a revenue stream that not only doesn’t have a track record, but doesn’t even yet exist is the worst example of fiscal irresponsibility to come out of Harrisburg in a long time. And, given state government’s recent orgy of tax hikes and borrowing, that is saying a lot.