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UPDATE: State chooses British firm to run the PA Lottery, Democrats appalled by decision

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UPDATE:

HARRISBURG, Pa. (AP) - A top official in Gov. Tom Corbett's administration is telling employees that a contract has been awarded to the British lottery operator to manage the $3.5 billion Pennsylvania Lottery.

The announcement by Secretary of Revenue Daniel Meuser to lottery employees Friday makes Pennsylvania the third state to hire a private lottery manager. Meuser says the contract is formally awarded, but Camelot cannot begin until the contract is executed. He says that's expected to happen next week.

Challenges await the Republican governor's agreement with Camelot Global Services.

The union representing state lottery employees is suing to block an agreement with Camelot and has filed a grievance and an unfair labor practice charge.

Messages left for spokespeople for Corbett and Meuser weren't immediately returned.

After this announcement was made, State Senator Mike Brubaker, Chairman of the Senate Finance Committee, issued the following statement Friday emphasizing the panel's plans to move forward with the scheduled public hearing regarding the potential privatization of the management of the Pennsylvania Lottery despite recent actions by the Corbett Administration.

"Today, the Corbett Administration announced a 'notice of award' as it relates to a private management agreement (PMA) for the Pennsylvania Lottery, indicating that an agreement has been reached with British-based Camelot and an additional deadline extension will not be necessary."

"However, I have stood by my word from day one as the chair of this committee stating that the significance of this issue warrants a public forum to provide members of this legislative body and all Pennsylvanians an open dialogue with the stakeholders. As a result, this panel will move foward with the hearing scheduled for January 14th to ensure our questions are answered and the issue is properly vetted."


The Senate Democrats also released the following statement:

Senate Democrats expressed 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.”






(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

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