Philadelphia’s emergency tuition relief plan was announced yesterday to mixed a reception. The plan calls for providing tuition grants funded through the legalization of the thousands of video poker machines already paying out in bars across the state. Governor Rendell thinks that revenue from these video poker machines will help thousands of students afford college tuition starting this fall.

The problem? While it is legal for a restaurant or bar to have a video poker machine for purely entertainment purposes, it is illegal for the machines to pay off winners.

"We'll eliminate the gap between what families can afford to pay and what they are forced to pay, often by borrowing tens of thousands of dollars," said state Education Secretary Gerald L. Zahorchak, who made the announcement in Harrisburg along with acting state Revenue Secretary Stephen H. Stetler and state Police Commissioner Frank Pawlowski.

Pawlowski says that approximately 17,000 video poker machines operate illegally across the state at present.

"This is not an expansion of gaming - it is the recognition that video poker is already a thriving industry," Stetler said.

College freshmen from families earning up to $100,000 a year, as well as working adults returning to college, would be eligible to use the grants at the state's 14 community colleges or 14 public universities.

Under this proposal a student from a family earning $32,000 a year would pay less than $1,000 a year for all college expenses under the plan, and a student from a family earning $45,000 would save 77% in expenses.

According to estimates, after four years over 175,000 students would reap the rewards of this program, receiving more than $500 million in grants.

Venues with liquor licenses (so bars, taverns, restaurants and private clubs) would be eligible to have up to five video poker machines.

Amy Christin, executive director of the Pennsylvania Tavern Association, said that the proposal is positive news to the owners that her Harrisburg lobbying organization represents. "These are mom-and-pop taverns that are looking for any kind of new revenue," she said.
This said, swaying the General Assembly of this plan’s pros could be difficult.

State Senate Majority Leader Dominic Pileggi, a Republican representing parts of Chester and Delaware counties, commented, "It is not clear how he intends to win legislative support, especially since bills to legalize video poker have been introduced for at least a quarter-century without becoming law. Serious concerns will be raised about licensing, regulation and enforcement."