The House allowed a vote on Governor Wolf's $2.4 billion tax package this past week. It failed and demonstrated there was no appetite by all of the Republicans and some of the Democrats for the tax increases.
So there has been much hang wringing and pleas for compromise by media and the political class. Some have suggested the Republicans accept some kind of tax increase - could be Wolf's dream of additional taxes on the oil and gas industry, or a broadening of the sales tax - and that Wolf accept maybe the privatizing of state stores. Let's give the GOP leadership credit for so far resisting a deal that would raise taxes.
However, GOP leaders are now floating the idea to raise revenue by expanding gambling in Pennsylvania. The idea is that this would provide at least some of the additional revenue that Governor Wolf wants so badly. Majority Leader Dave Reed said that a discussion is needed on what other revenues are on the table and "gaming options" should be in the discussion. The pressure is getting to him. When the GOP leadership starts talking about increasing revenues to solve the budget impasse they have accepted the Governor's premise that the problem is not enough revenue. They are now arguing on his terms.Gambling is seen as easy out. It has been turned to before. Gambling's role in financing government continues to grow. We enacted a state lottery ($1 billion in revenue last year!) to support programs for the elderly. We then had to keep up with our neighboring states' gambling attractions and support horse racing. So we opened up casino gambling ($1.2 billion in taxes last year!) - funds to go to property tax relief and many other wonderful causes. Then to keep up with our neighboring states (yes, we heard this before) we had to expand casino gambling to include table games (an additional $96 million last year). Then we legalized gambling in bars ($554,000 in diminishing returns).
Well, what's next? Well, there is Internet gambling, slot machines at off-track horse race betting parlors, slot machines at airports, and ... use your imagination. All the revenue, of course, would be needed for the children, the "underfunded" schools, the elderly, the deteriorating bridges, the elderly, the poor, healthcare, job development, and ... use your imagination.Most importantly, a new gambling based revenue stream would permit the GOP leadership to not have to raise taxes, and to offer new revenue to Governor Wolf and the media demanding a compromise. It would also allow the leadership to dodge their responsibility to CUT SPENDING. The General Assembly, with Republican majorities in both houses, needs to remain firm and let Governor Wolf know that if the budget is indeed unbalanced, as he claims, then spending will have to be reduced.
Furthermore, Pennsylvania does not need more state sanctioned gambling. The Commonwealth of Pennsylvania is addicted to gambling revenue. It now cannot live without it. What used to be enough now does not give the high it used to: more gambling; more tax revenue to feed the addict. The GOP leadership would be enabling this addiction and taking the cowardly way out by solving this budget impasse with gambling revenue.
