House
and Senate Democrats plan to file a "friend of the court," or amicus
brief, supporting a lawsuit brought in December by AFSCME against Gov.
Tom Corbett’s scheme to privatize management of the Pennsylvania
Lottery. In addition to the union, the petitioners on the suit include a
handful of House and Senate members, lottery employees who stand to
lose their jobs if the privatization goes forward, and senior citizens
who receive benefits from the commonwealth funded by lottery proceeds.The suit alleges, among other claims, that Gov. Tom Corbett does not have the statutory authority to enter into the management contract with Camelot Global Services PA LLC, the United Kingdom-based private company which was the lone bidder for the lucrative management contract.
"It was really a shock for me as a newly elected legislator, on my way to Harrisburg with ideas on how to make life better for the people of my district to discover that before I even got here, the governor took it upon himself to sign away control of the lottery without even consulting with those who represent the people who will be most affected," said state Rep. Mark Painter, D-Montgomery, a freshman House Democrat who has signed on to the brief.
Painter joins legal effort opposing lottery scheme that will hurt Pa. seniors
HARRISBURG, Jan.
24 – State Rep. Mark
Painter has added his name to an amicus brief that will be filed opposing the
Corbett administration's decision to privatize management of the 41-year-old Pennsylvania
Lottery by contracting with a foreign company.
Painter said House
and Senate Democrats plan to file the "friend of the court," or
amicus brief, supporting a lawsuit brought last month by AFSCME. In addition to
the union, the petitioners on the suit include a handful of House and Senate
members, lottery employees who stand to lose their jobs if the privatization
goes forward, and senior citizens who receive benefits from the commonwealth
funded by lottery proceeds.
The suit alleges, among other claims, that Gov. Tom Corbett does not have the statutory authority to enter into the management contract with Camelot Global Services PA LLC, the United Kingdom-based private company which was the lone bidder for the lucrative management contract.
"It was really a shock for me as a newly elected legislator, on my way to Harrisburg with ideas on how to make life better for the people of my district to discover that before I even got here, the governor took it upon himself to sign away control of the lottery without even consulting with those who represent the people who will be most affected," said Painter, D-Montgomery.
The Corbett lottery scheme was the subject of this week's public hearings held by the state House Aging and Older Services Committee. Last week, House and Senate Democratic leaders sent a letter to new Attorney General Kathleen Kane asking that she reject the plan.
"Every dollar that the governor shifts to profit a foreign corporation is a dollar lost to our seniors. That's less money for property tax relief, and less money for prescription drug assistance," Painter said.
The Pennsylvania Lottery had a record year in 2011-12, with sales of nearly $3.5 billion and profits of more than $1 billion. For this fiscal year, lottery sales are on pace for another record, with profits nearly 10 percent higher than they were a year ago.
Painter said thelottery’s yearly impact on Montgomery County is profound: $14.1 million for PACE/PACENET prescription-drug assistance, $8.9 million for the Property Tax/Rent Rebate Program, $7.3 million for the operation of Area Agency on Aging programs and senior centers, $13.7 million in long-term living services, and $7 million for the Shared/Free Ride Transportation Program.
The lottery also distributed $97 million in prizes in the county.
Painter said he encourages constituents to call Corbett's office at 717-787-2500 and express their opposition to the lottery plan. He also said they can sign the online petition at http://bit.ly/WmSIXS.
The suit alleges, among other claims, that Gov. Tom Corbett does not have the statutory authority to enter into the management contract with Camelot Global Services PA LLC, the United Kingdom-based private company which was the lone bidder for the lucrative management contract.
"It was really a shock for me as a newly elected legislator, on my way to Harrisburg with ideas on how to make life better for the people of my district to discover that before I even got here, the governor took it upon himself to sign away control of the lottery without even consulting with those who represent the people who will be most affected," said Painter, D-Montgomery.
The Corbett lottery scheme was the subject of this week's public hearings held by the state House Aging and Older Services Committee. Last week, House and Senate Democratic leaders sent a letter to new Attorney General Kathleen Kane asking that she reject the plan.
"Every dollar that the governor shifts to profit a foreign corporation is a dollar lost to our seniors. That's less money for property tax relief, and less money for prescription drug assistance," Painter said.
The Pennsylvania Lottery had a record year in 2011-12, with sales of nearly $3.5 billion and profits of more than $1 billion. For this fiscal year, lottery sales are on pace for another record, with profits nearly 10 percent higher than they were a year ago.
Painter said thelottery’s yearly impact on Montgomery County is profound: $14.1 million for PACE/PACENET prescription-drug assistance, $8.9 million for the Property Tax/Rent Rebate Program, $7.3 million for the operation of Area Agency on Aging programs and senior centers, $13.7 million in long-term living services, and $7 million for the Shared/Free Ride Transportation Program.
The lottery also distributed $97 million in prizes in the county.
Painter said he encourages constituents to call Corbett's office at 717-787-2500 and express their opposition to the lottery plan. He also said they can sign the online petition at http://bit.ly/WmSIXS.
Gov. Tom
Corbett is aggressively pursuing a plan to privatize the Pennsylvania
Lottery. House Democratic lawmakers question why the governor is so
intent on privatizing a lottery that has been a national model for
decades and just delivered a record $1 billion to programs that help
older Pennsylvanians.
PA Lottery Facts (2011-12):
- Total lottery sales increased by 8.5 PERCENT over the previous year -- to a total of $3.48 BILLION
- Total Net Revenues (profits) increased by 10.4 PERCENT over the previous year -- to $1.06 BILLION
- Administrative costs dropped by 0.8 PERCENT over the previous year -- saving $606,164 in administrative costs.
- Administrative costs as a percent of sales dropped over the previous year -- to 2.1 PERCENT from 2.3 PERCENT in 2010-11.
- The PA Lottery's profit margin (net revenues as a percent of total sales) grew to 30.48 PERCENT from 29.95 PERCENT in the previous year.
The Pennsylvania Lottery is
the only lottery in the nation that directs all profits to programs that
benefit senior citizens – like PACE, Property Tax/Rent Rebate and
Shared Ride. Every single lottery
dollar diverted from PA Lottery profits to a for-profit management
company is a dollar taken from programs that help seniors.
There are no changes that a
private management firm could institute that could not be done under the
current system – so why sell off this valuable asset? The lottery can
expand as needed; add games; change current games; add kiosks to more
locations...In short: the privateers bring nothing to the table.
In the News
- House and Senate leaders write AG, urge rejection of Corbett's lottery privatization contract - 17 Jan 2013
- Democratic lawmakers question Corbett lottery plan - 16 Jan 2013
- House Democrats seek deferral of lottery approval until AG-elect Kane takes office - 11 Jan 2013
- House Democrats blast Corbett's 'corporate giveaway' of Pa. Lottery - 3 Dec 2012
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