Without Foxwoods, Philadelphia may have to revise budget
Monday, April 26th, 2010 By: Shai Ben-Yaacovsbenemail@example.com
Foxwoods casino officials could be in hot water this week when they appear before the state Gaming Control Board. The project's chief investor, Steve Wynn, pulled out earlier this month, leaving the operators' finances in disarray
If Foxwoods' license is rescinded, Philadelphia may need to submit a revised five-year plan to reflect a drop in tax revenue expected from the casino. That's because the city is counting on $43 million in tax revenue from Foxwoods starting in 2012.
Philadelphia Finance Director Rob Dubow says he has met with officials from PICA, the state board that oversees the city's finances.
“Well, first we'd have to see exactly what the gaming board does and what it means in terms of the likelihood that there would be a second casino in Philadelphia,” says Dubow. “So I think we really have to see what they do before deciding whether we would want to make any changes to the plan.”
PICA chairman Jim Eisenhower says he'd advocate for a completely new five-year plan if the license were rejected.
“$43 million is not a negligible amount of money,” says Eisenhower. “It would be something that I think the city would have to address. Now, having said that, it is over a number of years, but it's not a negligible amount.”
EDITORIAL FOOTNOTE: It seems governments get caught up in spending all the money they receive. Philadelphia is planning on spending casino taxes before the casinos are even up and running.
Governments spend every dime they can get their hands on. Some governments are borrowing money to make up the short falls in government operating expenses.
DO YOU KNOW A GOVERNMENT THAT IS DOING THAT? What do you think?