As an insurance backup plan, I guess it's okay.
From a financial perspective, this is really frightening. Instead of collecting $290 million up front from a private business, they want to do a 30 year bond issue that would repay, in total, $556 million dollars, with $210 million coming from the 5% tax on slots revenue and $225 million coming from the slots license winner. Does that make sense to you?
I think Ken Sawyer was completely right in pointing out that it would be spending $210 million of state money that would otherwise go to other things over 30 years.
I listened to Governor Rendell on Ellis Cannon's show tonight. Very interesting how he presented what criteria would determine the winner of the slots license. Up until now, everyone had been saying that whichever plan was best for Pittsburgh (and the surrounding area) would be chosen. Tonight Gov Rendell presented the criteria in the following order:
- Integrity of applicant
- Profitability of applicant
- Financial soundness of applicant
- Benefit to region