PHILADELPHIA — A grand jury is investigating whether House Republican leaders illegally used a taxpayer-funded database as a campaign tool to better focus their messages to voters, a newspaper reported.

The $9 million database in question, developed under a contract signed in 2002 by then-Majority Leader John Perzel, creates detailed profiles of individuals using a technique called data mining, a Philadelphia newspaper reported Sunday.

The state attorney general's office is investigating the use of the database as part of its ongoing "bonusgate" probe into whether legislative employees were improperly paid from state coffers for political campaign work.

While lawmakers for years have used state discretionary accounts to improve technology in their legislative caucuses, it is illegal to use public money or resources for campaigns.

Walter Cohen, a Harrisburg lawyer who represents Perzel, R-Philadelphia, said Friday state investigators were looking into the database work as part of a broader review of technology contracts of both parties in the House and Senate.

In an interview Friday, Perzel said neither he nor anyone in his office ever used the publicly financed database, developed by New Orleans-based GCR & Associates, for campaigns.

Perzel said the database was necessary to modernize constituent services. If a constituent calls with a request, the information is entered and tracked over time, he said.

FREEPORT — The Army Corps of Engineers is lowering the water levels in two sections of the Allegheny River northeast of Pittsburgh so workers can repair a badly eroded dam.The repairs are needed at Allegheny River Lock and Dam No. 6 near Freeport. The dam exists to keep the river's pool at least 9 feet deep so barges can navigate. The water in the pools immediately above and below the dam are being lowered by a foot.The dam is not used for flood control so there is no public danger if it fails.The dam work is expected to continue through the end of next month. Safety zones are in force to keep boats safely away from the dam in the meantime.

NEWTOWN — Officials broke ground Sunday on a long-awaited veterans cemetery in suburban Philadelphia.Sen. Arlen Specter told the crowd at the dedication ceremony Americans owe their security and freedom to veterans and the cemetery is one way of repaying that debt."This is not a favor. This is an obligation," said Specter, R.Pa., who introduced legislation to create a veterans cemetery in southeastern Pennsylvania more than a decade ago.Former Rep. Mike Fitzpatrick said Bucks County is uniquely suited for a national veterans cemetery. The site a few miles from where Gen. George Washington and his troops crossed the Delaware during the Revolutionary War is "hallowed and historic, pristine and pure and peaceful," Fitzpatrick said.Construction on the 205-acre cemetery is slated to start in the spring. Burials are expected to start there late next year.Veterans have been pushing for a cemetery in the Philadelphia area for years. The closest veterans' cemetery to the Philadelphia area now accepting casket burials is Indiantown Gap National Cemetery in Lebanon County, 90 miles to the northwest.Rep. Patrick Murphy, D-Pa., said many World War II veterans are making plans for final resting places, so there was an urgent need to make the cemetery a reality.

ALLENTOWN — Business is apparently still booming at Pennsylvania's casinos despite the nationwide economic downturn.Gaming industry analysts say Pennsylvania was the only East Coast state to post higher numbers last month than at the same point last year. Data shows revenue is up 30 percent over last year, as of Oct. 31.Officials say part of that could be because the gambling industry in Pennsylvania is young and still growing.Casinos in other parts of the country are struggling.Las Vegas slot machine revenues are down 12 percent. Casinos in Atlantic City, N.J., have gone down 19 percent since last year.In Pennsylvania, officials say four of the five casinos that have been open more than a year are doing better than at this point last year.