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| FOR IMMEDIATE RELEASE |
| State Rep. Rosita C. Youngblood |
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Youngblood plans to introduce bill that would accelerate repayment of loans, provide for additional property tax relief
HARRISBURG, June 3 – Although Pennsylvania residents have seen more than $2 billion in property tax relief from casino gaming, state Rep. Rosita C. Youngblood, D-Phila., said additional funding that would be used to reduce property taxes could be hindered if the General Assembly fails to act immediately to accelerate repayment of loans taken out of the Property Tax Relief Reserve Fund.
Youngblood said the loans, totaling nearly $64 million, were issued to help fund the initial costs of the Pennsylvania Gaming Control Board when slot machine gaming first came to Pennsylvania. She added that the General Assembly's intent when issuing the loans was to require the industry to repay the loans, and require the Board to devise a repayment plan once a sufficient number of casinos were operational and generating slot machine revenue.
"Pennsylvania's gaming industry has contributed much to our economy, including billions of dollars for property tax relief for residents all across the Commonwealth," Youngblood said. "But we are missing out on a large chunk of money that could be generating even more relief for property tax owners. We need to get these loans repaid as soon as possible."
Last session, the Legislature amended the state's Fiscal Code to require the Gaming Control Board to establish and approve a repayment plan no later than June 30, 2011. However, the law also stipulated that this repayment plan would not take effect until at least 11 licensed facilities were operational. Since Pennsylvania currently has only 10 operating slot-machine facilities, Youngblood said there is some concern about the financial risk of waiting until the eleventh facility comes online before requiring loan repayment.
"It is very difficult to determine when the 11th casino will open its doors or when it would start generating revenue through slot-machine gaming," she said. "With 10 facilities fully operational, there is no reason to wait any longer. We need to put a plan in place and start the repayment of these loans immediately."
Earlier last week, State Treasurer Rob McCord offered a repayment plan that, he says, would capitalize on investment income opportunities that would greatly benefit Pennsylvania's property tax payers. Youngblood said she has reached out to the Treasurer to see what elements of his plan could be incorporated into her legislative proposal.
"The most important thing to do right now is change state law and trigger the immediate repayment of these loans," Youngblood said. "Treasurer McCord has some good ideas on what the repayment plan should look like, and I know the Gaming Control Board is currently reviewing repayment options, as well. Regardless of what proposal we approve, we need to move forward right away with a plan that helps the taxpayers of Pennsylvania."
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