Gaming Revenue Distribution

Overview
Beginning in February 2007, the ERCGP Growth Partnership Division convened a series of work sessions to develop the best possible understanding of The PA Race Horse Development and Gaming Act, PA Act 71 of 2004 and to strategize the best use of gaming revenue funds. This collaborative effort of the ERCGP, economic developers, The Erie Community Foundation, the Regional Assets Task Force and other business and community leaders resulted in a slate of recommendations for gaming revenue use that was subsequently adopted by the ERCGP Board of Directors and presented to Erie County government for consideration.

Current Status
The distribution of gaming revenue considered "municipal grant" funding is currently a subject before the Pennsylvania Commonwealth Court.

In January 2009, the Erie Regional Chamber and Growth Partnership (ERCGP) filed an Amicus Curiae — or "friend of the court" — brief urging the Pennsylvania Commonwealth Court to reverse the Aug. 4, 2008, Order of the Court of Common Pleas of Erie County regarding distribution of “municipal grants” under provisions of the Pennsylvania Gaming Act. To read the Amicus filing, please click here.

The ERCGP’s brief asserts that the lower court’s Order negates the intent of the PA Legislature to ensure that gaming proceeds address a broad section of community needs. It argues that the Order also converts a “grant” to an “entitlement” by mandating that all eligible applications be funded without regard to the application’s merits or amount requested. The ERCGP’s position agrees with the County of Erie’s position that such a funding scheme violates provisions of the Pennsylvania Gaming Act. The ERCGP asserts that the Pennsylvania Gaming Act explicitly grants authority to Erie County to administer grants through its economic development authority and that the County must develop procedures and guidelines to ensure appropriate application and the highest and best use of gaming revenue funds.

Significance
Each year millions of dollars will flow to Erie County and Summit Township because Presque Isle Downs and Casino exists. Roughly one-half of Erie County’s share is “restricted” for municipal grants to Erie County, Summit Township and the municipalities contiguous to Summit Township to alleviate costs associated with the presence of the gaming facility. The other one-half of Erie County’s share is unrestricted and can be used for any purpose allowable by law. If at the end of a fiscal year uncommitted “restricted” funds exist, they are to be paid over to the Erie County Gaming Revenue Authority for undesignated uses.

Resources

To read the ERCGP's January 2009 Amicus Curiae filing, please click here.
To access the ERCGP's recommendations, please click here
For more information on the legislative parameters for gaming revenue distribution in Erie County, please click here