News

April 5, 2009

Rendell pushes legalizing poker to fund tuition

By Andrew M. Seder aseder@timesleader.com
Times Leader Staff Writer
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Though his plan hasn’t gained much traction, especially among local lawmakers, Gov. Ed Rendell is continuing to pitch his proposal to legalize video poker machines in bars and private clubs and use the revenue to offset tuition costs for some college students.

At recent stops, including one last week in Reading, Rendell detailed the plan that’s included in his 2009-10 draft budget. The idea is to legalize the thousands of currently illegal video poker machines operating throughout Pennsylvania and to authorize others.

The proceeds, according to Rendell, would generate about $550 million a year for the state to be used to offset tuition costs for students the 14 state-owned universities or any community college in the state.

To qualify, a student’s family would have to earn less than $100,000 annually. The state would allocate as much as $7,600 to relief for tuition, fees, room and board to qualified students. Students would be required to pay a portion of their tuition – at least $1,000 a year.

“The crisis facing Pennsylvania families who are struggling to save for their children’s higher education has only been worsened by the national economic downturn,” Rendell said during a visit to Reading Area Community College. “Many families who saved diligently for their children’s education have watched those savings quickly evaporate – through no fault of their own. That’s why it’s essential for the General Assembly to approve my plan right away.”

Local legislators said that’s not likely.

State Sen. Lisa Baker, R-Lehman Township, said she is opposed to the proposal on many levels.

“I don’t support this plan. It falls short on many fronts. It expands gambling to every corner of the state, it limits student choice and I have serious concerns about licensing, regulation and enforcement of video poker.”

As to the governor continuing to tout his plan, Baker said, “The governor is free to pitch whatever he chooses in the manner he chooses. And legislators are free to accept, alter, or reject those plans, based in part on what they hear from constituents.”

Baker is on the opposite end of the political aisle from the Democratic governor, but some in Rendell’s own party are concerned about the proposal.

Rep. John Yudichak, D-Nanticoke, has proposed a law with a similar intent but using lawmaker leadership account excess funds rather than video poker revenue.

“I applaud the governor for the intent of this legislation, which is to help drive down the cost of a college education in Pennsylvania. But we need to do some work and find a way to include all students in Pennsylvania, including those in state-related and private colleges and universities. And we need to make sure that the rollout of this gaming opportunity is done as appropriately as possible.”

State Rep. Phyllis Mundy, D-Kingston, said she’s also concerned by the proposal, especially the funding mechanism which she called “troubling.”

“The slots casino industry is so new. Only seven of the 14 licensees are up and running to date and there have been problems with oversight of the existing casinos. I would hope we could work through establishment of the existing gaming industry before embarking on a massive new expansion of gaming in Pennsylvania,” Mundy said.

“It would seem that if we were to expand gaming, table games at the slots casinos would be the next logical step, instead of embarking on a massive new gambling venue. Also, it’s my understanding that when the existing law passed we promised this new fledgling industry that we would not allow competition for them for a certain period of time. If we do, we will have to repay their $50 million per licensee fees back. So I anticipate lawsuits would tie up any new gaming law for a long time at great expense.”

Yudichak emphasized that any plan should include money for all students, regardless of what college they go to in the state.

“There are some serious flaws in the current draft of the governor’s Tuition Relief Act in that it leaves out a large portion of our college students because it does not include state-related schools and private institutions such as King’s College, Misericordia and Wilkes universities in Luzerne County, and this needs to be addressed.”

more information

Visit the state Department of Education Web site at www.pde.state.pa.us and search for Tuition Relief Act.

Andrew M. Seder, a Times Leader staff writer, may be reached at 570-829-7269.

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