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A PennLive investigation raised questions about oversight of money funded by tax revenue from Hollywood Casino at Penn National Race Course. Dauphin County is now overhauling its gaming grant program in response.
The county has distributed more than $150 million through the program since 2008. Under the new rules, grants will no longer go to private businesses. They will instead be limited to nonprofits and government entities. The same standards will also apply to the county’s tourism grant program.
Commissioners Respond to the Reforms
County commissioners said the changes are designed to improve transparency and accountability. Commissioner Justin Douglas said the reforms mark
“a significant step toward greater transparency, accountability and public trust for the gaming grant program.”
All three county commissioners supported the changes.
What the PennLive Investigation Found
According to PennLive, the county previously awarded nearly 100 gaming grants to private businesses. Some of those grants went to businesses connected to public officials or their relatives and friends.
The investigation also found the county routinely waived follow-up requirements such as progress reports and project audits. In at least two cases, grantees hired their own companies to perform work paid for with grant money.
New Compliance Measures and Scoring System
The revised program adds several new compliance measures. Grant recipients must certify that funds were used properly, submit progress reports every six months, disclose conflicts of interest, and file close-out reports. The county also said it can revoke grants if projects do not happen. It can also recover assets purchased with grant money. A formal audit can be required if serious questions arise.
The county is also moving the process online. Applications, progress reports, close-out reports, and aggregated advisory board scoring results will be posted publicly.
A new scoring matrix will allow applicants to earn up to 102 points. The matrix places greater emphasis on public need and a clear project scope and budget. Projects can receive 20 points for fulfilling a public need and 15 points for having a clear scope and budget. Other categories include leveraging outside funds, ties to Hollywood Casino, community support, and attending a pre-application workshop.
Final Words
Local authorities control the Pennsylvania’s gambling revenue. Since 2008, Hollywood Casino at Penn National Race Course has generated $266 million for Dauphin County. Half of that money must go toward grants.
Dauphin County is one of the only counties in Pennsylvania with sole discretion to distribute those funds without state approval.
The next round of gaming grant applications opens Aug. 1 and closes Nov. 2.
Source: As reported by pennlive.com.
