Indiana Fights Tax Subsidy Cuts
Feb 27, 2013 0:48:20 GMT -5
Post by Evelyn on Feb 27, 2013 0:48:20 GMT -5
Racing industry fights subsidy cuts
Pence's budget would reduce funds to horse racing, tracks
By Paul Gable
Staff writer
Published: Tuesday, February 26, 2013
A potential reduction of tax subsidies for the Indiana horse racing industry could have a major affect on Indiana Downs and Hoosier Park racinos.
In 2011, the horse racing industry dodged a bullet when it came to the size of the purses awarded to breeders and horsemen. Lawmakers passed a two-year budget that reduced the amount of subsidies by approximately $3 million, though initial budget proposals had funds and purses dropping by 23 percent for 2012. Subsidies for the thoroughbred industry were slated to drop from $26.1 million to $18.1 million.
The industry may not be as lucky this year, however. New Gov. Mike Pence announced on his second day in office he would like to cut the racing subsidy completely. Pence's budget proposes putting that money toward Medicaid.
"It will hurt the industry if it gets cut, no question," Indiana Downs General Manager Jon Schuster said.
Senate Appropriations Committee chairman Luke Kenley, R-Noblesville, who is among the top budget authorities in the Statehouse, said the subsidies were a commitment made to the horse breeders as part of the rationale for authorizing racing in the first place more a decade ago.
Mike Brown, executive director of the Indiana Horsemen's Benevolent and Protective Association, said at this point, Pence's cuts are just a proposal. However, he warned, the implications would be serious if the proposal is included in the new state budget and passed.
"We recognize that we have a challenge with the legislature. It is important to the entire state that the funds are not cut. The horse racing industry provides a direct economic impact to the state and is a billion-dollar industry," Brown said.
In 1993, Indiana opened its borders to riverboat casinos, and lawmakers mandated the horse racing industry should get a share of the admission cost charged to patrons of the boats. In recent years, money from the admission charge amounted to $17 million annually for the racing industry, Brown said.
In 2007, the General Assembly allowed expanded gambling inland -- casinos to be built at the sites as the horse tracks -- aand agreed to give the horse racing industry 15 percent of what racinos brought in.
A 2010 Purdue University study showed that 10,000 people are employed by Indiana's horse racing industry each year and the industry generates $733 million annually, with an additional $69 million generated in taxes.
Brown said that revenue and those jobs would be gone if the subsidies are cut.
"We think it is important, and we will be working to convince the legislature how important this is. It would be devastating and it would be the end of the horse racing industry if the cuts go through. We have to do a better job of making people understand how important the impact of our industry is," he said.
Brown acknowledged the horse racing industry has a "great friend" in Sen. Kenley, but he said the industry needs more support.
"We have an awful lot of legislators who understand the industry. The legislators have a hard job. They are in session for three to four months and have to tackle a lot of issues. We have to do a better job of educating them," Brown said.
www.shelbynews.com/articles/2013/02/26/news/doc512bc85b8fdc3122128386.txt
Pence's budget would reduce funds to horse racing, tracks
By Paul Gable
Staff writer
Published: Tuesday, February 26, 2013
A potential reduction of tax subsidies for the Indiana horse racing industry could have a major affect on Indiana Downs and Hoosier Park racinos.
In 2011, the horse racing industry dodged a bullet when it came to the size of the purses awarded to breeders and horsemen. Lawmakers passed a two-year budget that reduced the amount of subsidies by approximately $3 million, though initial budget proposals had funds and purses dropping by 23 percent for 2012. Subsidies for the thoroughbred industry were slated to drop from $26.1 million to $18.1 million.
The industry may not be as lucky this year, however. New Gov. Mike Pence announced on his second day in office he would like to cut the racing subsidy completely. Pence's budget proposes putting that money toward Medicaid.
"It will hurt the industry if it gets cut, no question," Indiana Downs General Manager Jon Schuster said.
Senate Appropriations Committee chairman Luke Kenley, R-Noblesville, who is among the top budget authorities in the Statehouse, said the subsidies were a commitment made to the horse breeders as part of the rationale for authorizing racing in the first place more a decade ago.
Mike Brown, executive director of the Indiana Horsemen's Benevolent and Protective Association, said at this point, Pence's cuts are just a proposal. However, he warned, the implications would be serious if the proposal is included in the new state budget and passed.
"We recognize that we have a challenge with the legislature. It is important to the entire state that the funds are not cut. The horse racing industry provides a direct economic impact to the state and is a billion-dollar industry," Brown said.
In 1993, Indiana opened its borders to riverboat casinos, and lawmakers mandated the horse racing industry should get a share of the admission cost charged to patrons of the boats. In recent years, money from the admission charge amounted to $17 million annually for the racing industry, Brown said.
In 2007, the General Assembly allowed expanded gambling inland -- casinos to be built at the sites as the horse tracks -- aand agreed to give the horse racing industry 15 percent of what racinos brought in.
A 2010 Purdue University study showed that 10,000 people are employed by Indiana's horse racing industry each year and the industry generates $733 million annually, with an additional $69 million generated in taxes.
Brown said that revenue and those jobs would be gone if the subsidies are cut.
"We think it is important, and we will be working to convince the legislature how important this is. It would be devastating and it would be the end of the horse racing industry if the cuts go through. We have to do a better job of making people understand how important the impact of our industry is," he said.
Brown acknowledged the horse racing industry has a "great friend" in Sen. Kenley, but he said the industry needs more support.
"We have an awful lot of legislators who understand the industry. The legislators have a hard job. They are in session for three to four months and have to tackle a lot of issues. We have to do a better job of educating them," Brown said.
www.shelbynews.com/articles/2013/02/26/news/doc512bc85b8fdc3122128386.txt