Table games revenues for community college sitting in escrow account

 The money -- nearly $197,000 to date -- sits in an escrow account, earmarked for a proposed new school that might never happen.

Every three months, the account will grow with additional table-games revenue from Presque Isle Downs & Casino in Summit Township.

Local officials have until 2014 to use the money to launch a community college. If that does not happen, economic development projects throughout the county would benefit from the funds.

That is the current status of funding provided by a provision in table-games legislation approved by the Pennsylvania Legislature and crafted by state Sen. Jane Earll, of Fairview Township, R-49th Dist.

That provision requires 2 percent of the revenue from the games at Presque Isle Downs to be set aside for funding a community college -- a project that is stalled after decisions in 2010 by Erie County Council and the Erie School Board not to sponsor a community college because of cost concerns.

The provision would remain in effect after 2014 even if there is no college.

Table games opened July 8 at Presque Isle Downs. Every three months, the state sends the 2 percent share to an escrow account managed by the Erie County Redevelopment Authority, said Rick Notovny, the authority's executive director.

The account's current balance, including interest, is $196,755, Novotny said.

Early projections were that the 2 percent share would equal $1 million to $2 million per year for the community college. But based on the amount of local tax collected thus far, roughly $450,000 would be collected annually for the school.

Novotny said the table-games provision mandates that the money be used by the Redevelopment Authority for loans to local municipalities, for infrastructure projects, if the community college does not become a reality.

"The funds would be set aside as a revolving loan fund for municipalities in Erie County," Novotny said. "So if Millcreek said they wanted to put in a sewer line, or Harborcreek wanted to put in a new road, we could lend them money for that.

"We have not set up guidelines, interest rates for the loans, things like that," Novotny said. "It's too early. And if the community college is built, and sanctioned by the state, we would turn everything over to them and any future funding would go directly to them."

Erie County Executive Barry Grossman, said he and other local officials have not given up on the proposal.

Grossman is among many who believe a community college would help Erie build a skilled workforce and provide a more affordable educational option for many local residents than the region's four-year colleges and for-profit trade schools.

"We're going to keep working at it," Grossman said. "Sometime during this year, something will coalesce and an initiative will start that we will start (discussing) with the public. I'm not at liberty to talk about it now.

"I think the greatest economic development engine you can have is a community college," Grossman said. "Rather than just see that money go to municipalities, we can improve our workforce."