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Lobbyists open wallets to influence Pa. budget

HARRISBURG - When it became clear that the state budget was in crisis mode, three industries with much at stake in Harrisburg opened their wallets.

Gambling interests, natural-gas drillers, and tobacco companies have since January spent more than $4.5 million combined on lobbying efforts, according to expense reports filed last week with the state.

Those industries were among the few winners in a budget ravaged by the recession.

Casinos are poised to introduce poker and other newly legalized table games. Natural-gas drillers and tobacco companies fought off new taxes.

Six-figure lobbying campaigns are not new in Pennsylvania's capital. And it's hard to know the extent to which such activity changes legislators' minds. Even so, critics say the dollar amounts speak for themselves.

Industries "wouldn't spend money like that if it didn't work," said Barry Kauffman, executive director of Common Cause of Pennsylvania, a watchdog group.

Lobbying expenditures are, in Kauffman's view, "a key indicator of how Harrisburg really works: Invest a lot of money, and you are going to have a lot more clout at the bargaining table."

Comparing recent expenditures with past lobbying efforts is difficult. Pennsylvania didn't enact its disclosure law until late 2006, long after most states. And unless they provide gifts or lodging, those who try to influence state decision-makers must report little detail other than the totals spent.

Arthur Zaretsky, for one, isn't shy about describing the details: He hosted receptions and made his case to legislators over food and cigars - the latter being his business.

Zaretsky never thought he would need a lobbyist until it became clear to him this year that Gov. Rendell and Democratic legislators had set their sights on his livelihood. They wanted to help close the budget gap by taxing cigars.

Zaretsky, owner of Famous Smoke Shop, an Easton Internet and mail-order retailer of premium cigars, hired Eckert Seamans Cherin & Mellott L.L.C., a Pittsburgh law firm with a Harrisburg office.

"I needed to educate the politicians about exactly what it is we do and how many people we employ and that putting on a tax would not be a good idea," he said.

Eventually, Republican legislative leaders defeated the proposed cigar tax, along with one proposed for smokeless products such as chewing tobacco and snuff. Left standing was a new tax on little cigars - cigarillos.

In all, tobacco interests large and small spent nearly $1.5 million on lobbying from January through Sept. 30, records show.

Reynolds American Inc., whose subsidiary Conwood Co. is the nation's second-largest producer of smokeless tobacco products, devoted the most - $670,658.

Lobbying in the capital takes many forms - meetings with legislators, letter-writing, and "blast" e-mail campaigns orchestrated by lobbyists. There are studies and polls and white papers commissioned by lobbyists.

"There is nothing wrong with lobbying per se. It is just delivering information. It's valuable," said Rep. Greg Vitali (D., Delaware). "The problem comes when lobbyists try to do more than inform, try to ingratiate themselves to you. And that happens a lot in Harrisburg."

To natural-gas drillers, too, the writing was on the wall as early as February. That was when Rendell announced in his budget address that he was pushing for a new tax on the odorless, colorless gas found deep below Pennsylvania's soil.

Rendell said the tax would bring in about $100 million this year, thanks to what he called the "gold rush" of new drilling for natural gas in the vast underground formation known as the Marcellus Shale.

But in late August, the governor - to the surprise of some of his aides - said drilling executives had convinced him that imposing the tax this year would stunt the growth of the industry. Rendell said he would abandon his push until next year.

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Comments   
Posted 06:17 AM, 11/08/2009
brian stewart
ITS CALLED A BRIBE IN THE REAL WORLD.
Posted 07:53 AM, 11/08/2009
save1nj
"Left standing was a new tax on little cigars - cigarillos". Wow, so the fat cat can still puff his stogie tax free but the low income 20 something gets a new tax. Wonderful, then we wonder why young people become apathetic and don't vote.
Posted 08:17 AM, 11/08/2009
rbpeeple
Table games were inevitable...lobbying money and campaign donations are to influence how much casinos are taxed on the money. Expect Rendell and that criminal DeWeese's casino investor cronies to do very well.
Posted 09:01 AM, 11/08/2009
Taxpaying Voter
Is this any suprise that our politicians are on the take from these special interest groups? And it will never change since the people who would make the law that will ban these types of bribes are the ones getting the envelope full of cash.
Posted 11:15 AM, 11/08/2009
MikeP
Yeah, it could change. It will change when we start voting people out of office until campaign finance reform and term limits is in place. Who would have thought anything could be done about the hefty raises they gave themselves? Republicans, who had fought against gambling, now support table games after they were bribed. Democrats backed of cigar and natural gas taxes for the same reason. Our state and country is run by special interest groups.
Posted 11:16 AM, 11/08/2009
Kearney
This coming week our House of Representatives will have another chance to save individuals and families from being destroyed by a compulsive casino addiction. All they have to do is vote YES this time for Rep. Clymer amendment on Pa. TABLE GAME legislation. His amendment will make our gaming operators, who already have in place a tracking system, known as ‘REWARD/COMP CARDS’ to send their patrons’ monthly gaming statements showing their money and time spent gambling? This legislation has been put forth in our House and Senate in the last three sessions and has been the only legislation since our gaming law passed in 2004 that addresses the compulsive casino gambling problem ‘BEFORE’ one has the problem. It’s also has been voted on as an amendment on gaming legislation twice, once in 2006 were it got a split decision 99 YEA to 99 NAY vote, and last month when it got a 100 NAY to 98 YEA. You can help stop the casino casualties from hitting astronomical numbers by calling your state legislators and telling them you supporting Rep. Paul Clymer legislation to send monthly statements.
Posted 02:43 PM, 11/08/2009
Taxpaying Voter
Kearney: I could care less about a casino sending me a monthly statement about my gambling. Take some personal responsibility for your gambling and stop trying to blame the "big bad casino" for YOU choosing to gamble. I'd rather my lawmakers focus on HB 40 to protect not only myself but all of local law enforcement from being liable in a civil lawsuit from a criminal we had to defend ourselves from.
Posted 02:45 PM, 11/08/2009
bottomline
The reason gambling was illegal in most states was the concern about "dad" loosing the food money. So, now gambling is legal and now we need another layer of laws to stop "dad" from loosing all the food money. Why not just repeal the gambling laws? Okay, I was just funning, I'm sure its too late to refund those political contributions.
Posted 04:10 PM, 11/08/2009
Kearney
Yo Taxpaying Voter, take it easy, I’m only trying to help others from becoming what I once was. I get a kick out of those who question my good intensions. Some of you say I’m being a fear-monger and many have suggested that I should give up, put my energy into what they see as more important issues. And what I’ve learned over the years about many of those questioning my efforts is that the only time they’re addressing any social or economic ill effects is in a few blogs or over a few beers. Now I’m not saying you, Taxpaying Voter, are one of those people. I’m sure you’re out there addressing many social and economic ill effects that you deem more worthy than mine.
Comment removed.
Posted 04:39 PM, 11/08/2009
Taxpaying Voter
Kearney: I take responsibility for MY OWN ACTIONS and don't blame anyone like the casinos for example. If I can't handle gambling, I don't do it, if I am poor I go get a job, if I am dumb I go to school to get educated. Its all about each person taking it upon themselves to make something of their life and contribute to society. Casinos will provide jobs and tax dollars to the city & state thats the bottom line. If the so called addicts can't handle it then let them move elsewhere, the city & state would be better off without them draining our resources.
Posted 06:15 PM, 11/08/2009
Kearney
Taxpaying Voter: It’s true I do blame this so-called entertainment venue known today as ‘GAMING’ but I put more of the blame on our government officials who have given these casino predators carte blanche to do what ever it takes to fill state coffers. How many of these pillars of our society or their loved ones do you think participate in this so-called entertainment? Remember one thing, those jobs and taxes that you’re so concerned about is being paid for by Pennsylvanians losses and most of that money will come from those who can least afford it. Who do you think is going to be blowing their money when the two ‘FLEECING’ joints open up in our city? Do you think it’s going to be the residences of Rittenhouse Square, Society Hill, or the Mainline? No, what you will see, day after day, week after week, are the residents of South, Southwest, West, North, and Northeast Philly blowing there Cash, Pay Checks, Social Security, Welfare Checks and Credit Cards usage and what ever they can steal to feed their addiction. Give it a year or so and then we’ll see the ill effects of casino gambling. Things like bankruptcy, crime, suicides, and children left without care and food because one or both of their parents will be gambling. But maybe you’re right, Taxpaying Voter, and we should do what those parents did who back in the 60s said, drugs, what drugs; you got a better shot of my kid getting picked up by aliens than becoming a junkie.
Posted 09:03 PM, 11/08/2009
rbpeeple
Taxpaying Voter...you are quite ignorant as to how casinos operate. You believe gambling is a matter of free will, just like any other adult habit. But when a slot machine player is pitted against casino researchers armed with psychological techniques, marketing studies, and computer analyses of a patron’s own behavior (via their own casino cards) for the express purpose of extracting ever larger amounts of money - it's a not an even playing field. One thin is OBVIOUS...you have no empathy for others...I guess because you're so super-disciplined.
Posted 12:22 PM, 11/09/2009
bottomline
As much as I'm opposed to government interference in the lives of the people, it's undeniable, gambling for many is a road to ruin, not riches. It falls into a similar category as the predatory credit market with people taking loans they'll never be able to repay because of the interest structure. These calculated predatory loans border on what was know as loan sharking, one of the very things the government banking regulators were supposed to prevent. Why should anyone expect a government overseer of the gambling industry will protect the vulnerable from themselves. Also, the more the government stepped up the war on drugs, the worse the problem became.
14 comments
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