Article published November 06, 2009
Lawmakers see new funding options in casino OK
By JIM PROVANCE
BLADE COLUMBUS BUREAU CHIEF
COLUMBUS - Now that they know future casinos are a reality, some Ohio lawmakers yesterday continued to explore ways to make state government a jackpot winner.
Sen. Bill Seitz (R., Cincinnati), a member of the Senate Finance Committee, even suggested that voters' approval Tuesday of Issue 3 authorizing four Las Vegas-style casinos may have provided backdoor voter approval to slot machines at racetracks.
"It's amazing what the prospect of an income-tax increase or a postponement of a promise to cut will do to encourage legislators to consider other options," he said.
The Republican-controlled committee is considering a bill proposed by Gov. Ted Strickland and passed by his Democratic House colleagues to delay for two years the last 4.2 percent installment of a five-year, 21 percent income tax cut. That would generate an estimated $844 million over two years.
The money would be applied to an $851 million hole in the K-12 education budget created by a recent Ohio Supreme Court decision subjecting to voter referendum a plan passed by the governor and lawmakers to install and tax slot machines at seven racetracks.
Mr. Seitz argued that the language in the four-casino constitutional amendment that protects Ohio Lottery games amounted to de facto voter ratification of the slots plan, which would have been operated by the lottery commission. Although it's been placed on hold by the court decision, the slots program is still on the books.
"It sounds intriguing," said Pari Sabety, Mr. Strickland's budget director. However, she characterized such thinking as "fairly speculative."
"The bottom line here is there are a lot of things for us to look at," she said. "The question is whether any of those things provide $851 million with certainty in 2010 and 2011 to provide our school districts with the funding support that they need now. That's the question we need to answer now."
A few senators have also talked about whether the state could somehow tap the total of $200 million in one-time licensing fees expected from the four casinos as a result of Issue 3. While the constitutional amendment sends the money to the state, it specifies that the revenue be used for regional job training.
Mr. Strickland urged lawmakers not to waste time hungrily eyeing casino revenue to solve the state's immediate budget woes.
"Time is passing," he said. "With every passing month, the deficit gets larger to the tune of $35 million. For those who would like to pretend that this casino initiative somehow solves or helps to solve the problem, it does not."
Sen. John Carey (R., Wellston), the committee's chairman, said suggestions aired by some lawmakers do not necessarily reflect the direction the committee or Senate will go.
The Department of Taxation has urged quick legislative action so that it can have tax return forms and instructions printed in time for the usual mailings to taxpayers at the end of the year.
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