A recent forensic audit of the Erie County Gaming Revenue Authority (ECGRA) conducted by Pennsylvania Auditor General Tim DeFoor has confirmed that the organization is in compliance with all state regulations. However, the audit has also brought to light a financial dispute between Erie County and ECGRA regarding unpaid funds.

The audit, requested by Erie County Executive Brenton Davis, was initially sought to examine ECGRA’s spending practices, with Davis hoping to demonstrate that the authority spends excessively on operations. Instead, the findings revealed that Erie County is more than half a million dollars behind in transferring its share of gaming revenue to ECGRA for distribution.

County Council President Terry Scutella has stated that the county is obligated to pay the amount owed. He explained that the county receives gaming revenue, allocates $1 million to the land bank, and then splits the remaining funds equally between the ECGRA board and county government. Scutella expressed confidence that the council would agree to fulfill this financial obligation, saying, "It's something that we're going to have to pay."

County Executive Brenton Davis, however, has raised concerns about the basis of the audit’s findings. He pointed out that the formula used to determine the owed amount is based on what he described as an "informal, unwritten agreement" made prior to his tenure. Davis argued that such an agreement cannot be enforced and noted that even the auditor general recommended formalizing the arrangement through a memorandum of understanding. "What it comes down to is the formula," Davis said. "You can't enforce something that's unwritten and informal."

Despite his reservations, Davis indicated a willingness to negotiate with ECGRA to establish a clear and formal formula for future revenue distribution. Meanwhile, Scutella maintained that the council would likely vote to pay the amount identified in the audit.

Adding to the discussion, Christina Vogel, the Democratic nominee for Erie County Executive who will challenge Davis in the upcoming fall election, issued a statement urging Davis to act swiftly. "We need to end the games, chaos, and fighting within the county government," Vogel said. "I call upon Mr. Davis to quickly disperse the funds due to ECGRA and to pledge to work with ECGRA as recommended by the auditor general."