RethinkErie

A new gambling law that is expected to provide up to $2 million annually for a proposed community college in Erie County should help local officials get the school off the ground within four years.

That's the take of both Erie County Executive Barry Grossman and Mary Bula of Rethink Erie, a partnership of business, government, philanthropic and economic-development interests launched by the Erie Regional Chamber and Growth Partnership to help evaluate the need for the college.

 

Grossman, Bula and others on Thursday turned their attention to what's next with the local community college plan in the wake of the state House of Representatives' approval Wednesday night of table games for Pennsylvania's slots-only casinos, including Presque Isle Downs & Casino in Summit Township.

 

The next steps include a new business plan for the college, which would likely operate in existing buildings rather than be constructed from the ground up, and an economic impact study "that will quantify our return on investment," Bula said.

 

Rethink Erie could have the business plan finished by early February, and the economic impact study done by late March or early April, said Bula, vice president of the chamber's Growth Partnership Division and a member of Rethink Erie's leadership team.

 

The new gambling legislation includes a 2 percent local tax that will be used for a proposed community college in Erie.

 

About $1.5 million to $2 million could be generated annually from that local share, according to local officials' estimates.

 

The state House and Senate have now approved the bill, and Gov. Ed Rendell has signed the legislation.

 

"I'm very encouraged that the gaming funds would probably cover the initial costs," said Grossman, who strongly supports launching the school.

 

Grossman met with Bula to discuss the college plan Thursday morning.

 

Rethink Erie still hopes county government will agree to be the school's state-required local sponsor, Bula said.

 

Some County Council members, though, have expressed concern that a community college could become a burden on taxpayers by spawning future property tax increases.

 

"It's the duty of county government to make sure that, down the road, this doesn't become an economic burden that would debilitate county government," Grossman said. "I don't think it will."

 

Bula said the new legislation gives Rethink Erie and other local officials four years to develop the community college plan.

 

That means there is no hurry to submit a state-required community college application for local and state consideration.

 

"We don't want to rush things," Bula said. "We want to make sure we do things right. ... We want to have all of the I's dotted and T's crossed."

 

Bula said the new business plan should give local officials a more accurate cost estimate for the school, as well as address curriculum, staffing and other needs.

 

Both Bula and Grossman said a County Council-commissioned financial report released in June based its cost projections on creating a new campus, inflating the school's cost by millions.

 

That report revealed that the county's share of annual operating expenses for the community college would likely start at $1.7 million and grow to $6.6 million by the time the school is open for five years, and that the county likely would need to issue $109 million in bonds to pay for the school's construction.

 

Several council members began souring on the plan after that report was released.

 

"The numbers put out by the county were based on assumptions we never were following," Bula said. Local officials are looking at existing sites to house community college programs.

 

One possibility, Bula said, is the Erie County Technical School, on Oliver Road in Summit Township.

 

"We know there is space out there right now that we could use to launch the programs needed in the community right away," Bula said.

 

Grossman said the county would have to put some money into the community college if it agrees to sponsor it. But county officials are looking at other funding sources to supplement table-games revenue, including state and federal grants, endowments and contributions from local businesses that would benefit from the community college's work force training programs, Grossman said.

 

"It's going to be our job, the people who support this project, to find those revenue streams that are going to be sustaining and permanent," Grossman said.

 

Grossman said community colleges operate in 14 other Pennsylvania counties. "None of them have bankrupted county governments," Grossman said. "Once they're up and operating, they kind of take on their own energy."

 

State Sen. Jane Earll, of Fairview Township, R-49th Dist., has said that the 2 percent share of table-games money would go into an interest-bearing account controlled by the Erie County Redevelopment Authority.

 

If the state Department of Education does not certify the community college within four years, Earll has said, the money would be put into a revolving-loan fund.

 

Municipalities in Erie County could then apply to the authority for low-interest loans for sewer, water, broadband, road and other infrastructure projects, Earll has said.

 

Erie County Councilman Joseph Giles, who has worked closely with Rethink Erie on the community college plan, promised that council would take a close look at new cost projections and other data before making a decision about whether to sponsor the school.

 

"How this will all play out in terms of the plan, I'm not quite sure," Giles said. "But I think in terms of funding, we need to look at every option."

KEVIN FLOWERS can be reached at 870-1693 or by e-mail.