Deadline for bid to privatize Pa. lottery extended
The $34 billion bid by Camelot Global Services to manage the lottery is set to expire at the end of Friday
  • Gov. Corbett has fast-tracked a plan to privative the state lottery by having it managed by a British firm.

  • State Sen. Mike Brubaker

By Karen Shuey
lancaster
Updated Jan 11, 2013 11:04

Why do today what you can put off until tomorrow?

A decision on a deal to privatize management of the Pennsylvania Lottery has been put off for one day.

The deal to extend negotiations was announced Thursday after Gov. Tom Corbett and a British company agreed to the postponment.

Just hours before the $34 billion bid by Camelot Global Services was set to expire, the governor's office announced the bid deadline was extended until Friday night.

"Negotiations toward a longer extension will continue tomorrow," the statement from Corbett said.

Speaking earlier Thursday, before the deadline was extended, state Sen. Mike Brubaker said he hoped the Corbett administration would extend the negotiations a second time.

The Lititz lawmaker said he wanted the deadline to be pushed back until the Senate Finance Committee's public hearing on the the subject on Monday.

"The public has very little information about the issue at this point," Brubaker said.

But without yet another extension, that won't happen.

The original deal by Camelot was given a Dec. 31 deadline, but at the last minute was moved to Jan. 10.

Brubaker, who chairs the Finance Committee, revealed details Thursday about a public hearing to explore what has become the Corbett administration's most aggressive effort at privatizing state government services.

Corbett fast-tracked plans to bring in a private company to manage the Pennsylvania Lottery, arguing that a rapidly growing senior population has made it necessary to explore ways to make the lottery more profitable.

The hearing may be the only chance for proponents and critics to argue the pros and cons of the massive privatization effort.

Individuals scheduled to testify at the 10 a.m. hearing in Harrisburg include Dan Meuser, secretary of the Department of Revenue; Brian Duke, the secretary of the Department of Aging; Pete Tartline, deputy secretary of the Office of the Budget; Jeffrey Cramer, managing editor of Kroll Advisory Solutions.

Also David Fillman, executive director of American Federation of State, County and Municipal Employees Council 13; Diane Thompson, CEO of Camelot; Alex Kovach, president of Camelot; Dave McCorkle, CEO of Pennsylvania Food Merchants Association; and Ray Landis, advocacy manager of AARP.

Under the proposed deal with Camelot, which runs the national lottery in the United Kingdom, profits totaling $34 billion are guaranteed over the life of the 20-year contract — an average of $1.7 billion per year.

Brubaker said Thursday he doesn't doubt that Camelot will make good on its promises, but he has a few questions about the deal.

Why is Corbett rushing into a deal without the Legislature weighing in?

Will 100 percent of lottery profits  still go to seniors, or will it be used to reduce the state's debt?

Are we going to be able to hold the management firm accountable?

These questions, and others, will be asked by Finance Committee members, Brubaker said.

Brubaker said he hopes the Finance Committee will get to the bottom of many questions surrounding the lottery privatization issue.
kshuey@lnpnews.com

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