HARRISBURG -- Gov. Ed Rendell gave a one-word answer when he was asked yesterday how much confidence he has that the state House and Senate will settle their differences over a table games bill by Jan. 8.
"Nil."
Mr. Rendell's 2009-10 budget counts on $250 million in revenue and license fees from table games at state casinos, but legislators haven't agreed on final details of the bill. The governor has threatened 1,000 additional layoffs if he doesn't receive the bill by Jan. 8.
"I have waited and waited and waited on this. Right now I am not sure we will ever have a table games bill," he said.
The biggest sticking point between members of the House and Senate, who won't return to session until Jan. 4, is whether to add one license for a resort casino. The 2004 slots law permitted two of these smaller casinos, which could have up to 500 slots and perhaps table games like blackjack, poker and roulette.
One of the two current licenses has been awarded, but several other locations are interested in a resort license, including Nemacolin Woodlands resort in Fayette County, a hotel south of Gettysburg, and hotels near Reading and in the Poconos.
Some House members want to increase the chances of getting a resort casino in their area, so they want to add a third resort license. But the Senate is opposed and things have remained at loggerheads.
"It's like the irresistible force meeting the immovable object," Mr. Rendell said.
If the table games bill isn't approved, the state would lose an estimated $250 million, which is needed to balance the $27.8 billion general-fund budget for 2009-10, Mr. Rendell said.
Of that total, $191 million would be lost in one-time license fees paid by each casino that wants table games, as well as money from a permanent tax on table game revenue. Also lost would be the transfer to the general fund of $47 million from slots revenue that now goes to the horse-breeding industry and $12 million in slots money that goes to local law enforcement agencies.
State Rep. Dante Santoni, D- Berks, chairman of the House Gaming Oversight Committee, wasn't as pessimistic as Mr. Rendell. He told The Associated Press earlier that House-Senate talks are continuing this week and he is hopeful the differences can be resolved.
The loss of table-games revenue would add to the state's money woes. For the first five months of fiscal 2009-10, revenues from the income tax, sales tax, corporate taxes and other levies have come in $217 million less than expected. If things don't turn around, there could be more than 1,000 layoffs, officials said.
"I don't think we can run the government as effectively with 1,000 fewer people" on top of 700 layoffs this year, Mr. Rendell said. He also talked of reductions in "discretionary grants" for arts programs, museums and hospitals, in addition to layoffs, if revenues stay below expectations.
Mr. Rendell said some state parks could be shut down in 2010 and the State Museum in Harrisburg closed. Earlier this year, state officials had raised the prospect of closing parks, but that hasn't happened yet. There have been layoffs in conservation and natural resources, environmental protection and the museum commission.
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