Question of LSA program audit still an open one

A news release Monday from state Rep. Bud Cook, R-West Pike Run Township, noted the state auditor general’s office acknowledged it had received his request to audit Washington County’s Local Share Account grant program of gambling revenues from The Meadows Racetrack & Casino.
But Gary Miller, spokesman for Auditor General Eugene DePasquale, said confirming a formal request is “not an indication we’re going to launch an audit.
“A closer review is under consideration depending on the availability of audit staff. Nothing has been ruled in or ruled out.”
Cook, a member of the House Gaming Oversight Committee, in April began seeking co-sponsors of an overhaul of Washington County’s Local Share Account, which has earmarked $89.7 million to 391 projects since casino gambling money became available in 2008.
After holding public hearings, the committee makes a recommendation to the county commissioners, who forward a list to the state Department of Community and Economic Development for final approval.
The projects have ranged from the modest – an automatically opening door at the Washington Senior Citizens Center – to the massive, such as multimillion-dollar allocations to the Alta Vista and Starpointe business parks to the mixed-used Southpointe II, which includes office, retail and residential areas.
The memorandum seeking co-sponsors for Cook’s legislation, which can be viewed on the state House of Representatives website, leaves intact a formula for which most municipalities of a certain size directly receive casino revenue.
Put in place a few years after the program’s inception, the direct allocation generally gives municipalities $25,000 plus $10 per resident to be used “for any lawful purpose.” The exceptions in Washington County are tiny Green Hills Borough and North Strabane Township, which, as the casino’s host community, has a separate funding stream.
Communities can apply for additional projects, and nongovernment entities that don’t receive an automatic allocation are also eligible to make a case at annual public hearings.
Cook’s memorandum strikes language from the bill that sets up a competitive grant process for projects dealing with economic development, infrastructure, job training, community improvements and “other projects in the public interest.”
According to the memorandum, the change he proposes for gambling revenue distribution is that the state treasury will give money “directly to school districts within the host county which shall be used exclusively for reducing the school district property taxes of homesteads and farmsteads” enrolled under the Taxpayer Relief Act.
The school tax reductions would be based on population and would be in addition to the allocation already reflected on current tax bills.
But in his statement Monday, Cook said, “This is not about taking away LSA grants.” He said he wants to visit “local borough and township leaders that have requested more information about the LSA audit and/or who have concerns with my proposed legislation to address the lack of action to resolve these concerns.”
The legislator, whose district includes parts of Washington and Fayette counties, cited lack of adequate voting records or meeting minutes on LSA committee votes, deliberations or discussions that lead to recommendation or rejection of applicants; ethics statements that would reveal potential conflicts of interest; and the length of time – some dating to 2008 – that committee members have served.
Cook posted a video on his Facebook page on the Local Share news release, and while he did not return a call Monday afternoon to the Observer-Reporter, a member of his staff said he planned to release another video later this week.
Washington County Commission Chairman Larry Maggi questioned if grants announced by state legislators have accompanying minutes, open deliberations and recorded votes.
In March, Cook announced a $4 million Business In Our Sites loan and $6 million loan from the same program regarding the former Wheeling-Pittsburgh Steel plant at Allenport through DCED.
As to ethics statements for LSA committee members, Maggi said that, as an advisory board to the commissioners, “I venture to say everybody there has filed a statement” because members are either public officials or elected officials.
Their longevity on the committee is a result of their being “people who know what’s going on in the county, people who are involved in economic development. They’ve got past experience in that,” Maggi said.