Harrisburg, February 14, 2013 – State Senate Democrats applauded Pennsylvania Attorney General Kathleen Kane’s decision to reject the Corbett Administration’s plan to privatize the management of the Pennsylvania Lottery to a U.K.-based company Camelot Global Services.
“The Attorney General made a proper decision,” Sen. Jay Costa (D-Allegheny) said. “Pennsylvania seniors and all Pennsylvania residents can rest easy now that the Attorney General took this action and put a stop to the expansion of gaming without proper authorization.”
“The entire plan was flawed.” Costa, the Democratic Leader said. “It is clear that there are ways for current employees of the Lottery to be given the latitude to implement changes that will produce better results and even more money being generated.”
At a news conference today in Harrisburg, Kane said that she could not approve the deal negotiated between the Corbett Administration and Camelot. The Attorney General cited several reasons for her denial including that the arrangement infringed on the legislative powers of the General Assembly, that the plan was an illegal expansion of gaming without proper authorization and that the plan involved a waiver of sovereign immunity.
State Sen. Vincent Hughes (D-Philadelphia/Montgomery) who serves as Democratic Chair of the Senate Appropriations Committee said that Kane took the correct course in refusing to approve the Private Management Agreement (PMA.)
“We do not need a foreign-based company managing the operations of the Lottery when we have Pennsylvania residents with the ability to produce more dollars to bolster senior programs.” Senate Democratic Appropriations Chair Sen. Vincent Hughes said.
“The AFSCME study indicated that there were many pathways available for Pennsylvania officials to take to generate new dollars without privatizing the Lottery,” Hughes said. “There are tools available for the legislature to give to the Lottery that will produce a better deal. Plus, we can be transparent with our action and deliberation.”
The recommendations made by AFSCME were contained in a counterproposal that the union generated following the governor’s decision to privatize the Lottery. AFSCME indicated in its presentation that it could generate $1.5 billion more in lottery profit.
“We can do a better job and do it in an open process involving the current Lottery personnel,” Sen. Anthony Williams (D-Philadelphia/Delaware), the Senate Democratic Whip said. “The Attorney General was clear that the General Assembly needs to be involved and that arbitrary action cannot be taken by the administration.
“There is no reason why we cannot open the process and allow the Lottery to suggest ways it can generate even more profits.”
State Sen. John Blake (D-Lackawanna/Luzerne/Monroe), the Democratic Chair of the Senate Finance Committee, said that there were so many questions about the privatization scheme that went unanswered and that the whole process needs to be restarted at the beginning and include the General Assembly.
“From the time the PMA was announced there has been great unease about the process and the procedures that were included in the deal,” Blake said. “I am pleased that Attorney General Kane put a roadblock up today and announced her decision to deny the PMA.
“Now members of the General Assembly can look at ways on building on the strengths of the successful Lottery that we now operate to generate more funds for seniors, using employees of the Lottery who are Pennsylvania residents.”
Costa said that he especially appreciated the fact that Attorney General Kane removed politics from the decision, focused on the legal issues involved in the contract and made the right call on behalf of Pennsylvania’s seniors.
Hughes said that there is no question that lawmakers will be able to generate the $50 million that was part of the agreement and that was included in the governor’s budget presentation.
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Contact:
Stacey Witalec| Press Secretary
Senator Jay Costa and Senate Democratic Caucus
535 Main Capitol | Harrisburg, Pa 17120
Phone:(717)772-2368 | Cell:(717)877-2997
www.senatorcosta.com
Harrisburg, February 11, 2013 – State Sens. Jay Costa (D-Allegheny) and John Blake (D- Lackawanna/Luzerne/Monroe) said that instead of outsourcing the Pennsylvania Lottery’s operations to a U.K. company, Camelot Global Services, the governor should allow the Lottery to implement AFSCME’s recommendations to raise new revenue.
“Instead of privatizing the management of the Pennsylvania Lottery, the governor should instruct the Lottery to move on many of the recommendations made in the AFSCME report so that hundreds of millions in new revenue can be generated,” Costa, the Senate Democratic Leader, said. “If current Lottery employees were given the latitude that is called for in the PMA with Camelot, they would clearly equal or exceed the revenue projections of the proposed contractor.”
“Instead of privatizing lottery operations without the consultation of lawmakers, we should be using our current, dedicated and capable Pennsylvania employees to grow the Lottery and generate more revenue to aid our seniors,” Blake said.
Blake, who serves as the Democratic Chair of the Senate Finance Committee, said that it would make more sense to build on the strengths of a successful system and a successful Lottery workforce rather than turning the entire operation over to a private, for-profit enterprise.
“I see no reason why we need to privatize the Lottery using a foreign concern when we can implement many of the recommendations made in the AFSCME report to boost revenue,” Blake said. “The governor should reconsider the decision on outright privatization and instead build on our successful system by expanding its discretion and simply augmenting its operations with any needed outside marketing or managerial experience.”
The recommendations made by AFSCME were contained in a counterproposal that the union generated following the governor’s decision to privatize the Lottery using a Private Management Agreement (PMA). AFSCME indicated that it could generate $1.5 billion more in lottery profit.
A recent Franklin and Marshall survey indicated sixty-four percent of registered voters who were asked oppose privatization of the Pa Lottery.
“The AFSCME proposal contains recommendations that will boost revenue, institute more internal controls and provide for greater accountability. We need to give our Lottery and our workers a chance to create more revenue and expand before we send the management of our system overseas,” Costa said.
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Harrisburg – February 7, 2013 – Pennsylvania’s Democratic Senate and House legislative leaders said today that they strongly oppose a Republican plan to make changes in the current Electoral College winner-take-all system that could reduce the state’s national electoral clout and unfairly swing elections to Republican presidential candidates.
State Sen. Jay Costa (D-Allegheny) and Rep. Frank Dermody, Democratic leaders in the Senate and House respectively, said that no change should be made in the Electoral College system. A winner-take-all system is used in 48 states.
“The Republican plan for changing the system to one where the apportionment of electors is based on the proportional vote of each candidate would effectively end Pennsylvania’s importance as a swing state,” Costa said. “The proposed plan is a partisan scheme that diminishes the voice of Pennsylvania on the national stage.
“Gov. Corbett needs to quickly, and unequivocally, reject this attempt to destroy a system that has served Pennsylvania well.”
The senator said that Republicans floated the idea because President Obama carried the state in the last two General Elections and Democratic presidential candidates have won Pennsylvania repeatedly over the last generation. Meanwhile, there is no plan to split the vote proportionally in heavily Republican states such as Texas and Alabama, he said.
Dermody said that Republican governors in Ohio and Virginia have rejected these types of schemes as violating a basic sense of fairness, but Gov. Corbett has failed to categorically reject this assault on fair elections.
“Although Republicans are couching their proposals in the language of fairness, the motivation for changing the Electoral College is purely partisan,” Dermody (D-Allegheny) said. “The Republican Party lost in 2012 because they failed to appeal to the majority of voters in Pennsylvania.
“They know they can’t win on the issues, so they are resorting to underhanded tactics and undermining the principle that the candidate who obtains a majority of the votes should prevail.”
Dermody went further, saying that the Republican plan “is about rigging the game and diminishing Pennsylvania’s influence over who becomes our next president.”
Costa and Dermody called on Gov. Corbett to immediately declare his opposition to the proposal and pledge to work with both Republicans and Democrats to solve critical challenges such as job creation, education, transportation and repairing the social safety net.
“This isn’t the first time that we’ve seen national Republicans push Pennsylvania Republicans to make changes for partisan purposes,” Costa said. “Republicans tried to help their candidate last year in the presidential election by adopting a flawed voter ID law that caused legal action and confusion on Election Day.”
“In order to improve their chances in Pennsylvania, the national Republican Party should alter its extreme policy views rather than rigging the rules of elections,” Dermody said. “It makes no sense for Pennsylvania to arbitrarily reduce its considerable national political profile and relegate us to small state status.”
Pennsylvania has 20 electors that cast votes in the Electoral College.
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HARRISBURG, February 5, 2013 — Governor Corbett outlined his 2013-14 budget proposal today, which my colleagues and I view as a false choice plan for Pennsylvania. It does little to address the problems the commonwealth is facing and relies on shaky and faulty premises.
The plan presented today is disappointing — very long on politics but short on solutions. What we need from the Governor is leadership on job creation, transportation and education.
Senator Costa Comments on Governor’s 2013-2014 State Budget Address :: February 5, 2013
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Harrisburg — January 11, 2012 — Senate Democrats today released statements expressing dismay and disgust at the actions of the Corbett Administration in announcing the notice of award as it relates to the private management agreement, (PMA), for the Pennsylvania Lottery.
“This is extremely disappointing and disturbing,” said Senator Jay Costa (D-Allegheny). “The action taken by the Corbett Administration was done without public input. Today’s decision has the potential to jeopardize senior programs and put taxpayers on the hook.”
“This has been a bizarre process that violates the public trust,” Costa continued. “There were no hearings, little opportunity to understand the proposed PMA and no scrutiny. The process was violated and the citizens of Pennsylvania were abused by this arbitrary action.”
Senator John Blake (D- Lackawanna), Democratic Chairman of the Senate Finance Committee pointed out the proposal needs legislative authorization and it demands legislative scrutiny.
“The process was culminated when the General Assembly was not in session and there was little public examination of the proposal,” Blake said. “This process wasn’t transparent — it was opaque. No one could see the end result except a small group of the governor’s inner circle.”
Expressing extreme disappointment on behalf of his constituents, Senator Rob Teplitz (D-Dauphin) said the use of a secretive process would lead to the privatization of a significant state asset and is unprecedented. “This is not a proper way to alter generations of public policy and violated the public trust.”
“On a personal level, many of the affected employees are my constituents and have been treated with complete disregard,” Teplitz said. “The arrogance of this administration in the way this was handled is deplorable.”
“I am extremely disappointed in this administration’s decision to jam this deal through at the last minute prior to a key Senate Finance Committee hearing,” said Senator Matt Smith (D-Allegheny). “This shows a disturbing lack of transparency by the Corbett administration and hinders a meaningful dialogue regarding this multi-billion dollar deal. The Camelot plan certainly deserves a proper examination by the General Assembly and Pennsylvania taxpayers are entitled to further information.”
Senator John Wozniak (D-Cambria) echoed the sentiments of his colleagues related to the PMA. “There are many questions related to how this privatization effort impacts seniors and property tax relief related to gaming. The concerns of taxpayers should have been taken into consideration and questions answered before the governor took this action.”
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