Universities say table-games lag may impact tuition

Pennsylvania State, Temple, and two other state-related universities said yesterday that the delay in approving table-games legislation in Harrisburg could affect tuition rates, starting in January.

The schools are waiting for $688.4 million that was left off the budget signed by Gov. Rendell on Oct. 9. That money is contingent upon the legislature and the governor reaching agreement on a table-games bill.

"We respectfully request that all reasonable and appropriate measures be taken to finalize the budget and the appropriations of Pennsylvania's state-related universities in order to minimize the financial harm and uncertainty impacting our students and their families," the schools said in a letter to House Speaker Keith McCall (D., Carbon) yesterday.

It was signed by the presidents of Temple, Penn State, and Lincoln University, and the chancellor of the University of Pittsburgh.

Tuition bills for the second semester are to be mailed next week to more than 158,000 students.

"That commitment to keep tuition increases as low as possible was honored notwithstanding all the uncertainty that existed when we had to set tuition levels without knowing what our approved appropriation levels would be, and also, whether [state] funds would in fact be provided to the state-related universities," the letter stated. "However, at the time our tuition levels were set, it was also stated that those decisions may have be to be revisited for the second semester."

McCall said last night that he can sympathize with the schools, but that lawmakers want to make sure table games generate a recurring revenue source.

"This bill needs to be done right the first time, and, like a college education, cannot be rushed without potentially causing more harm than good to the future," he said.

The legislature and Rendell disagree over how much to tax table games. The governor has said he will veto any bill with a tax rate of less than 16 percent, while the House and Senate have pushed competing tax rates ranging from 34 percent to 14 percent. The new state budget depends on revenue from table games.

Rendell spokesman Gary Tuma said the governor had scheduled another meeting with legislative leaders for this morning in Harrisburg. Rendell has said he wants a bill on his desk by Monday, the day the House is scheduled to return from recess. The Senate returns Nov. 16.

"He wants to get it done quickly," Tuma said yesterday. "He wants legislation that will raise $200 million in revenue this year and provide sufficient money to help balance the budget in the next fiscal year. To do that, he has said that we need a state tax rate of at least 16 percent.

"He believes that both sides are close enough to reach an agreement. It's not an ideological issue, it's not a political issue, and it should be able to get done by people working together in order to get the appropriation out to the remaining institutions that are waiting for their state money."