UPDATE:
Auditor General-Elect Eugene DePasquale Monday issued the following statement about privatization of the Pennsylvania Lottery:
“I am glad to see the Senate Republicans are holding a public hearing today to finally shed some light on Gov. Corbett’s effort to privatize the Pennsylvania Lottery. But I am surprised that Gov. Corbett took action late on Friday — after many affected employees left for the weekend — to accept a contract with a foreign corporation to run the Lottery before the public hearing. The whole point of this hearing is to shed some light on this process and a contract that could tie the hands of legislators and governors — and affect senior programs — for 30 years.
“My greatest concern is that we may be short-‐changing programs that benefit seniors. The administration has yet to identify how much more it will cost to operate the Lottery under private management, but we know transitioning to private management could cost millions of dollars, not including the costs that have already been incurred on legal, financial and other advisors. Moving forward, the commonwealth would be paying all the operating expenses for the private, for-‐profit management firm. These unknown expenses will be taken out of senior programs at a time when more seniors are seeking services.
“I am concerned that the sole bid from a foreign company was reviewed for more than a month and an alternative plan that raised significant substantive issues was given less than three days of review. I, for one, want to hear from the current Lottery manager Todd Rucci about the pros and cons of moving forward with this contract."
“Like many legislators on both sides of the aisle, I question the governor’s authority to unilaterally enter such an extensive contract and expand gaming opportunities without legislative input and authorization. I believe that all the facts should be known before we jump into this deal.
“If Gov. Corbett actually goes through with this sole-‐bid contract, I will do everything within my power as Auditor General to shed light on the entire selection process and make sure every penny possible is going to fund senior programs.”
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HARRISBURG, Pa. (AP) — State senators have a lot of questions about a deal to hand the Pennsylvania Lottery's management to a British firm, and some might be cross because Gov. Tom Corbett approved it three days before the hearing.
The agenda for today's Senate Finance Committee hearing includes Secretary of Revenue Daniel Meuser and executives from Camelot Global Services.
Pennsylvania would join Illinois and Indiana in privatizing lottery management.
Democrat Rob Teplitz says the administration's timing shows contempt for the Legislature and the public. But administration officials say the contract isn't binding until it's executed. That's expected to happen later this week. They also say awarding the contract means they can reveal more information about the deal that had been kept secret until now.
A court challenge to the deal is pending.
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