Rendell budget address this morning
Gov. Rendell gives his annual budget address today, and the controversy has already begun.
Gov. Rendell gives his annual budget address today, and the controversy has already begun.
Rendell this morning will ask the legislature to approve the video-poker legislation - the first expansion of gambling since the landmark 2004 bill legalizing slots casinos - in his otherwise somber, reduction-driven budget address today.
He speaks at 10:30 a.m. to the House and Senate.
Two top Senate officials said they expect Rendell will propose nearly $29 billion in spending for the fiscal year that starts July 1 - 2.5 percent above what was originally approved for this year. The officials spoke on condition of anonymity because they did not want to speak publicly before the governor presents his plan.
To pay for it, Rendell is counting on billions of dollars in federal economic stimulus, as well as money from new sources - such as his plan to legalize video poker machines in bars and private clubs - while cutting other programs.
If video poker proposal becomes law, tuition relief will start this fall for incoming freshmen and reach nearly $550 million by the time the program is fully in place, according to administration officials, who estimate that 175,000 students could receive aid.
Despite the national recession, he is expected to propose an overall spending increase that includes more money for education and state-subsidized health insurance.
Under the proposal, the state Department of Revenue would regulate the industry - requiring establishments to apply for a license for the poker machines - and oversee the taxes on poker profits.
Pennsylvania State Police officials estimate there are roughly 17,000 video-poker machines now operating illegally, and stress that they would rather use their time to crack down on drugs and sex offenders than track illegal video-poker machines.
In 2008 alone, state police seized 537 illegal machines.
"It's like the Wild West," said State Police Commissioner Frank Pawlowski. "They're out there totally unmonitored."
Contact staff writer Amy Worden at 717-783-2584 or
» READ MORE: aworden@phillynews.com
