BCT Editorial – 3/16/07

This page was last updated on March 17, 2007.

Thin ice; Editorial; Beaver County Times; March 16, 2007.

Rather than do a full point-by-point critique of the editorial, I’ll address the final paragraph, which states, “However, don’t forget that there is no such thing as a free lunch. If lottery revenues don’t pan out, someone is going to have to pick up the tab.”

What doesn’t the Times understand about the deal to use public funds to subsidize the new Penguins arena? The $235.5 million in public funds - $7.5 million/year for 30 years + $10.5 million upfront – allegedly comes from slot machine taxes.

That’s BS! Tax dollars are fungible. This $235.5 million could have been used to reduce other taxes. Why doesn’t the Times see our pockets have already been picked to enrich a private enterprise – the Penguins? The only question is, by how much more will our pockets be picked?

Finally, it’s important to realize how little of the cost the primary beneficiary of the project is paying. As noted, we the people are paying $235.5 million over 30 years. In addition, Majestic Star Casino owner Don Barden will pay $225 million over 30 years. How much will the Penguins pay? Out of the current total estimate of about $598.5 million over 30 years, the Penguins will pay only $138 million. That’s only 23% of the cost despite the fact the Penguins are the primary beneficiary.