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Saturday, Jun. 20, 2009

Slots bill faces likely demise in Senate

FRANKFORT — One way or another, a proposal to allow slot machines at horse racetracks will die on Monday, predicted Senate President David Williams, R-Burkesville.

The dire forecast came hours after the measure cleared the House on Friday in a 52-45 floor vote, the first for an expanded gambling proposal after more than a decade of debate in Frankfort.

The resulting "racinos" would generate hundreds of millions of dollars a year for the state's horse industry and school construction projects.

But shortly after approving the slots bill, the House recessed until 4 p.m. Monday without physically delivering the bill to the Republican-led Senate for its consideration.

Williams said that was done because House leaders know the measure does not have the votes in the Senate and wanted to give slots supporters time over the weekend to lobby senators.

"They knew we would have immediately had a committee meeting and killed the bill," he said.

Several senators said late Friday they already were receiving calls from various school superintendents seeking support for the slots bill.

Williams said the Senate will officially end the special legislative session that began June 15 if his chamber does not receive the slots bill by 4:30 p.m. Monday.

"Enough is enough," he said, noting the session costs taxpayers about $60,000 a day, including weekends.

If the House bill gets to the Senate before 4:30 p.m. Monday, Williams said, it will be assigned to the budget committee, where it will die.

Senate budget chairman Charlie Borders, R-Grayson, said his panel would give the bill "a fair and full hearing," but "there is no doubt in my mind that it would die there."

House Speaker Greg Stumbo, D-Prestonsburg, issued a statement late Friday saying he wasn't aware the Senate wanted to move so quickly on the slots bill.

"We would have been glad to have worked through the weekend had the Senate asked to do so," he said. "We will return on Monday, looking forward to continuing the legislative process."

Even as the House voted on the slots bill, Williams presented to the Senate budget committee his alternative plan to help the horse industry, one without expanded gambling, which he opposes.

The proposal cleared both the committee and the full Senate on Friday.

Williams' plan raises $85.6 million to help supplement Kentucky horse racing purses and breeder incentives by taxing lottery tickets and out-of-state race betting.

It initially included a plan to place a 10 percent tax on charitable gaming but the committee removed that provision.

Even without proceeds from taxing charitable gaming, Kentucky's average track purse supplement of $46,658 would be higher than any other state's, he said.

Still, it's not even clear if lawmakers can legally consider Williams' proposal during the special session because only a governor can set its agenda. Beshear earlier declined to put Williams' proposal on the agenda.

Jay Blanton, a spokesman for Beshear, said the governor's office has not had an opportunity to study whether Williams' move violated the governor's intent. "That is not something that we've looked at in any kind of depth," Blanton said.

In the House Friday, the debate over slots at racetracks lasted more than three hours.

Supporters said slots would help the state's horse industry by producing millions of dollars to fatten racing purses and breeder incentives. Presently, they warned, a dozen states with racinos are siphoning off Kentucky's precious horse supply, and with it, the state's signature industry.

"The evidence is clear and convincing that the wolf is at the door," Stumbo told the House. "It's time we do something now."

Also, Stumbo said, thanks to more than $190 million a year the state is projected to collect from slots' net revenue, Kentucky could issue bonds to pay for $1.3 billion in school and university construction projects.

"This is the largest elementary and secondary school construction project in the history of our commonwealth," said Rep. Harry Moberly Jr., D-Richmond. "This is a very important part of this bill."