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LSA funding solution in limbo on last legislative session day

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The state Senate prepared a bill Wednesday to temporarily reinstate a mandate that was struck down by the state Supreme Court that would require casinos to continue paying millions of dollars to the communities that host them.

But as of late Wednesday, a House lawmaker said no action had been taken on the proposal from the Senate.

According to the Associated Press, the Senate overwhelmingly approved a provision in a preliminary vote Tuesday night, 47-1.

The bill would mandate a different formula to create the same structure for “local share funding” that produced about $140 million in the previous fiscal year, but would only be effective until May 1.

Senate officials said the next seven months will give lawmakers time to work on a permanent solution.

However, one local lawmaker expressed skepticism that the bill would produce the desired effect without enabling some legislators to change other parts of the state’s gambling legislation.

The local share has gone to local government budgets, institutions and projects in the 12 counties where casinos exist.

The court ruled in September that the previous local assessment was unconstitutional because it treated the state’s casinos unequally, and imposed a heavier burden on lower-performing casinos.

State Rep. Brandon Neuman, D-North Strabane, said about 7:40 p.m. Wednesday that the House received a bill from the Senate but he was unsure if Republican leadership would ask to take a vote. Newman added he had not seen the bill.

“It would be good for our area in the short-term” because it would restore funding for the local share, Neuman said, “but in the end it delays the inevitable.”

State Sen. Camera Bartolotta, R-Carroll, was in session Wednesday and was unavailable for comment. The session was expected to go late into the night as the Senate attempted to finish a number of issues before adjourning.

According to Neuman, the end of the extension seven months from now would allow lawmakers to open up the entire gaming law to seek other changes.

Neuman has said he favors finding a solution for equitably funding the local share, but does not want to see other changes in the law.

In Washington County, where The Meadows Casino contributes a portion of its slot machine revenue to a Local Share Account, the money has been used over the past decade to help fund a variety of municipal, economic development and job training projects.

Each year, the county’s nonprofit organizations and municipalities apply for a portion of the funds for a variety of projects, which are vetted before a Local Share Account panel.

Jeff Kotula, who chairs the panel said Monday that the county receives an average of between $9 million and $10 million each year, of which $3.5 million is distributed directly to each of county’s townships, which receive $25,000 plus $10 for each resident.

While the county has approved a list of 77 applications for the vetting process by the panel, Kotula said it remains unclear how much money the panel will have to work with this year because of the Supreme Court ruling.

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