Friday, February 29, 2008
County Council Puts Marker on Gaming Money
Still stinging from the surprise New Year’s Eve delivery of $22.5 million in gaming money from the state to the County that apparently only the Executive was aware of, Council has proposed legislation that will account for all gaming money delivered into Allegheny County.
Their motivation is understandable: $19.9 million that was to be used for airport debt (which the historical record indicates was the airport debt held by the Airport Authority) instead came to the County and was used to plug a 2007 budget hole. The County Executive claimed that the County itself had put $42 million into the construction of the airport and was owed the money, despite the fact that the Airport Authority’s books show no such debt. Council has also initiated legislation directing the Authority to get the balance to the County, which was the subject of a previous blog entry.
The ordinance sets out this course: if the Executive determines gaming money is coming in, he is to provide immediate written notice to the Council and the Treasurer. It has to show the amount, the fund from which it came, and what it is to be used for. The money will be treated as special revenue and can only be expended after Council action.
As things stand now, here is what the County government is to receive: the remaining $130.1 million for airport debt of which the County Executive plans to claim another $22 million, the remaining $27.5 million for retirement of obligations related to the County Economic Development Fund, and $80 million for an infrastructure fund. Those three streams are from Act 53 of 2007, the Tourism and Economic Development Fund, and were directed to the County because of a last minute legislative amendment. The County itself is also supposed to get 2% of gross terminal revenue of the Majestic Star once that is up and running under the provisions of Act 71.
There is considerable grey area: a total of $309 million for convention center and hockey arena construction are coming as a result of Act 53. Presumably, that money will go directly to the Sports and Exhibition Authority, a City-County authority that owns the convention center and the present Mellon Arena. But that has not been specifically spelled out yet and the State Budget Office won’t know who gets that money until the application for the funding is made (sometime this year). Could any or part of that installment end up in the County’s hands? It is too early to tell, but is open to speculation.
What is ironic is that Pittsburgh and Allegheny County have yet to see a gaming establishment within their borders yet are reaping a gaming windfall while other counties and municipalities where gaming is up and running are getting nothing but their host fees.
Their motivation is understandable: $19.9 million that was to be used for airport debt (which the historical record indicates was the airport debt held by the Airport Authority) instead came to the County and was used to plug a 2007 budget hole. The County Executive claimed that the County itself had put $42 million into the construction of the airport and was owed the money, despite the fact that the Airport Authority’s books show no such debt. Council has also initiated legislation directing the Authority to get the balance to the County, which was the subject of a previous blog entry.
The ordinance sets out this course: if the Executive determines gaming money is coming in, he is to provide immediate written notice to the Council and the Treasurer. It has to show the amount, the fund from which it came, and what it is to be used for. The money will be treated as special revenue and can only be expended after Council action.
As things stand now, here is what the County government is to receive: the remaining $130.1 million for airport debt of which the County Executive plans to claim another $22 million, the remaining $27.5 million for retirement of obligations related to the County Economic Development Fund, and $80 million for an infrastructure fund. Those three streams are from Act 53 of 2007, the Tourism and Economic Development Fund, and were directed to the County because of a last minute legislative amendment. The County itself is also supposed to get 2% of gross terminal revenue of the Majestic Star once that is up and running under the provisions of Act 71.
There is considerable grey area: a total of $309 million for convention center and hockey arena construction are coming as a result of Act 53. Presumably, that money will go directly to the Sports and Exhibition Authority, a City-County authority that owns the convention center and the present Mellon Arena. But that has not been specifically spelled out yet and the State Budget Office won’t know who gets that money until the application for the funding is made (sometime this year). Could any or part of that installment end up in the County’s hands? It is too early to tell, but is open to speculation.
What is ironic is that Pittsburgh and Allegheny County have yet to see a gaming establishment within their borders yet are reaping a gaming windfall while other counties and municipalities where gaming is up and running are getting nothing but their host fees.
