Gambling on pensions
Once in awhile something gets dropped into the state legislative hopper more interesting than the usual bridge-naming and nonsense.
Take Rep. Paul Clymer’s bill to address the public pension crisis by charging casino-goers a $2 cover charge.
Yeah, I know, nobody going gambling wants to start with a sure loss. But the pension thing is real ugly and getting uglier every year.
So the Bucks County Republican, long a gambling opponent, wants each patron entering any of the state’s 11 casinos to take one (well, actually give two) for the team.
He says they can pony up a pair of singles or casino owners can put in turnstiles, count incomings and forward the dough to the state.
(Not sure how that second option might work.)
The new revenue would be split between the State Employees’ Retirement System and the Public School Employees’ Retirement System.
Both are a mess thanks to a 2001 law signed by then-Gov. Ridge increasing most lawmakers’ pensions 50 percent and other public servants’ 25 percent.
Then came the recession and now taxpayers are stuck for $1 billion-plus this year and $4 billion by 2016, according to the state’s Independent Fiscal Office.
Oh, and the state Constitution prohibits curtailing pension benefits for current or retired employees.
So somebody somehow has to come up with a boatload of money.
Nobody seems to know how much money Clymer’s bill could collect, but it’s surely tens of millions and at least a start; or part of a start.
Clymer says neither the Revenue Department nor the Gaming Control Board is hazarding guesses on what the fee would yield. And state gaming law does not require casinos to count patrons, though (of course) many other states do.
“I actually thought about this back when other states started riverboat gambling and charged $5 for anyone to get on board,” Clymer says. “Our two pension funds are in dire need and $2 a-head is certainly reasonable.”
There is precedent. Indiana, with 13 casinos, has a $3 per person charge and Missouri, with 12 casinos, charges $2.
The industry surely hates the idea in Pennsylvania. We already tax gambling at one of nation’s highest rates, 55 percent, with revenue going to local and state government, public schools, volunteer firefighters, horse racing and more.
And no state produces more gambling tax revenue. We took in $1.5 billion last year, a 10 percent increase from 2010, according to an industry survey.
http://articles.philly.com/2012-05-18/news/31749983_1_riverboat-gambling-pension-funds-gaming-control-board
Take Rep. Paul Clymer’s bill to address the public pension crisis by charging casino-goers a $2 cover charge.
Yeah, I know, nobody going gambling wants to start with a sure loss. But the pension thing is real ugly and getting uglier every year.
So the Bucks County Republican, long a gambling opponent, wants each patron entering any of the state’s 11 casinos to take one (well, actually give two) for the team.
He says they can pony up a pair of singles or casino owners can put in turnstiles, count incomings and forward the dough to the state.
(Not sure how that second option might work.)
The new revenue would be split between the State Employees’ Retirement System and the Public School Employees’ Retirement System.
Both are a mess thanks to a 2001 law signed by then-Gov. Ridge increasing most lawmakers’ pensions 50 percent and other public servants’ 25 percent.
Then came the recession and now taxpayers are stuck for $1 billion-plus this year and $4 billion by 2016, according to the state’s Independent Fiscal Office.
Oh, and the state Constitution prohibits curtailing pension benefits for current or retired employees.
So somebody somehow has to come up with a boatload of money.
Nobody seems to know how much money Clymer’s bill could collect, but it’s surely tens of millions and at least a start; or part of a start.
Clymer says neither the Revenue Department nor the Gaming Control Board is hazarding guesses on what the fee would yield. And state gaming law does not require casinos to count patrons, though (of course) many other states do.
“I actually thought about this back when other states started riverboat gambling and charged $5 for anyone to get on board,” Clymer says. “Our two pension funds are in dire need and $2 a-head is certainly reasonable.”
There is precedent. Indiana, with 13 casinos, has a $3 per person charge and Missouri, with 12 casinos, charges $2.
The industry surely hates the idea in Pennsylvania. We already tax gambling at one of nation’s highest rates, 55 percent, with revenue going to local and state government, public schools, volunteer firefighters, horse racing and more.
And no state produces more gambling tax revenue. We took in $1.5 billion last year, a 10 percent increase from 2010, according to an industry survey.
http://articles.philly.com/2012-05-18/news/31749983_1_riverboat-gambling-pension-funds-gaming-control-board
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