The tainted casinos
By Ben Waxman, 2/16/06
Philadelphia Daily News
ALTHOUGH he's innocent until proven guilty, the taint of corruption surrounds the newly indicted state Sen. Vincent Fumo, whose been accused of abusing public funds, spying on political opponents and generally getting richer off the backs of taxpayers.
But even a conviction won't fix the problem. Lawmakers have to repeal much of the legislation spearheaded by Fumo. And they should start with Act 71, which legalized gambling in Pennsylvania.
Fumo was perhaps the greatest champion of the casinos. He told fellow lawmakers that revenue raised via gambling could be used for everything from tax cuts to health care. The important thing was to get it while the getting was good.
The problems with Act 71 began while the legislation was still being drafted. Law- makers, led by Fumo, were so eager to start raking in the cash that they passed the bill without considering the costs.
Fumo's calling card is a politics that centralizes power and reduces local control. The casinos were no exception.
In Philadelphia, neighborhoods were denied the opportunity to have a meaningful say in what happens in their communities. Community activists have tried to pressure City Council to block the casinos, but so far elected officials have been unresponsive. Fumo and his allies know that the public would block the casinos if they could.
In addition to being poorly conceived, the process started by Act 71 completely lacked transparency.
Lawmakers created the Pennsylvania Gaming Commission, an unelected body that was charged with awarding the slots licenses. Citizens had little or no real input in what would happen in their communities. Fumo's style of politics requires that the public not play a major role in the decision-making.
The legislation that brought us casinos is an example of the pay-to-play culture that dominates Fumo's approach to politics. The financial backers of all the casino proposals had either direct or indirect links to Gov. Rendell and legislative leaders like Fumo. Some of the applicants were fined for violating ethics regulations that prohibited these ties. Ironically, the applicants who were fined for ethical reasons got slots licenses.
Part of Fumo's indictment accuses him of misusing the funds of a nonprofit he's associated with. The casino legislation spawned a similarly corrupt phenomenon. Applicants for slots licenses flooded community organizations with millions of dollars to stifle local opposition.
Dozens of neighborhood groups were promised lavish endowments. Implied was their support for the proposals in their communities. The casino applicants were only taking a leaf from the Fumo book.
In addition to the problems with the process, there are basic flaws in the entire conception of casinos as economic development. The idea that casinos should be a tool to raise revenue is incredibly short-sighted. Instead of working to lure businesses to the city or investing in creating and keeping a high-tech economy, lawmakers decided that gambling could be used to generate a few bucks. Fumo and his allies were more interested in making low-tech money now than investing in our future.
VINCE FUMO is a lot of things to a lot of people. He has brought major resources to Philadelphia. Billions of dollars have been steered towards mass transit, public infrastructure and other worthy uses.
The indictment doesn't completely destroy those good works. But lawmakers should repeal Act 71 and overhaul the process. Legalized gambling creates the kind of corrupt politics that voters are sick of.
Ben Waxman is a student at Juniata College in Huntingdon, Pa. He can be reached at ben@benwaxman.com.