Oct 24, 2016 4 min read

For the past decade, annual applications for projects qualifying for Washington County’s Local Share Account funds have come in like clockwork, with various nonprofit organizations and municipalities submitting proposals in hopes of passing muster before a vetting process conducted by a local LSA committee.

This year, as in the past, those applications, either for economic development, community improvement, public interest or job training, have been submitted for the 2016 funding year – 77 projects that seek about $17 million in LSA funds that are contributed by The Meadows Casino from a portion of its slot machine revenue.

While the requested amounts almost always far exceed the money that becomes available, this year there is no way to make a comparison.

According to LSA panel Chairman Jeff Kotula, no one knows how much the panel will actually have to disperse to the projects it approves.

The question mark for this year’s funding results from a state Supreme Court ruling in September that found the roughly 4 percent “local share assessment” paid by casinos is unconstitutional because it is not uniform and affects Pennsylvania’s 12 casinos differently.

The court, which struck down a requirement that forced casinos to pay tens of millions of dollars to their host communities for a decade, gave lawmakers four months to fix the problem.

Kotula said Washington County receives an average of between $9 million and $10 million each year, of which $3.5 million is distributed to each of the county’s townships, which receive $25,000 plus $10 for each resident.

The remaining money, about $6.5 million, is awarded to applicants whose projects are approved by the LSA panel.

According to Kotula, the funds from the casino represent payments made from March of this year through March 2017.

But if lawmakers fail to find a solution by January that is equitable to each of the casinos, Kotula said payments from the casino would be halted Jan. 26.

“I’m sure we’ll have dollars for 2016-17,” he said, adding this year’s share could be a little less than in previous years.

Groups that request the funds are required to have matching money from other sources for the amounts they seek. With the matching money added to the $17 million in LSA funds, the 77 proposed projects come to nearly $45 million.

There are four funding categories under which groups can apply for projects: economic development, community improvement, public interest and job training.

Under economic development, Washington & Jefferson College is requesting $492,270 toward a business incubator it would operate in the city for start-up businesses originating in the county. The college lists $2,515,925 in matching funds for the proposed project.

Among the 33 community improvement projects being proposed, Rotary International is seeking $663,980 for restoration of the main pavilion in Washington Park.

There are 35 applications for public interest projects valued at a total of $13,490,000, which range from water and sanitary sewer improvements in numerous communities to several projects to assist home rehabilitation and home ownership in the county.

In the job training category, Monongahela Valley Hospital and Washington Health System are requesting $600,000 for centers for community education and training in Carroll Township and Washington. The joint project is seeking $600,000 in LSA funds that would be matched by $691,720 for a total of $1,291,720.

In addition to the higher profile projects being proposed are many others seeking smaller amounts, such as Donora Public Library’s request for $106,000 for its historical museum and library archives addition.

But until a legislative solution is reached for a fair way to collect local share funding from the casinos, it remains to be seen how much money will be available.

State Rep. Brandon Neuman, D-North Strabane, said later Monday that he continues to propose that legislators focus solely on finding an equitable solution to the funding, but acknowledged that opening the legislation to work on the problem brings other risks.

There are other legislators “who are using this as a way to leverage this for other gaming issues,” he said.

Neuman, who said earlier that he would like to reach a solution before the close of this year’s legislative session, said he remains hopeful, “but my hope is waning with the close of each legislative day.

“Outside politics and politics under the dome have gotten in the way,” he said, adding that there are several pieces of proposed legislation written that would provide a solution to the funding challenge.

A complete list of proposed projects can be found at www.observer-reporter.com.