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State leaders, gambling opponents race to gauge the public's opinion on plan that would put video terminals at Ohio's horse tracks, including Summit County, to help bridge budget gap
By Dennis J. Willard
and Rick Armon
Beacon Journal staff writers
Published on Saturday, Jun 20, 2009
COLUMBUS: Facing a projected $3.2 billion revenue shortfall in the next two years, Gov. Ted Strickland reversed direction Friday and proposed slot machines at Ohio's seven racetracks, including one in Summit County.
The governor held a late afternoon press conference to outline his plan to balance the budget and to explain his change in position.
''This has been a difficult choice for me, but I believe a necessary one. It is contrary to what I ever thought I would have to do,'' Strickland said.
The state could take in an estimated $295.8 million in the fiscal year beginning July 1 and ending June 30, 2010, and the figure could grow to an estimated $637.4 million in the second year of the budget.
Northfield Mayor Victor Milani, a major advocate for the racetrack Northfield Park, was elated at the news.
''This would be a shot in the arm to a dying industry,'' he said.
Milani said the state has been slow to embrace slots.
''I think it's about time,'' Milani said. ''I think when 41 other states have some of this, we are far behind schedule here.''
Strickland provided few details on the proposal.
The funds from the slots, euphemistically called Video Lottery
Terminals, or VLTs, is only part of the governor's plan to balance the budget, which still includes trimming $2.43 billion from his budget office's original spending blueprint for the next two years.
Strickland wants to cut funding for libraries and reduce the state's contribution to employee pension benefits; reduce spending on agencies, boards and commissions by $1.29 billion over the biennium; and reduce Medicaid by an additional $770.4 million.
The governor, who faces reelection next year, said he is not willing to raise taxes during a recession. Ohio's unemployment rate has doubled since Strickland took office, with the latest figures at 10.8 percent.
Strickland said the Ohio Lottery Commission, not the Ohio State Racing Commission, would be charged with running the slot machines at tracks, and the money would come from licensing and gambling profits.
Previous ideas floated by others included asking racetracks to pay up to $50 million in licensing fees and placing up to 2,000 slot machines at the tracks.
Strickland said he would like the slot machine proposal to be approved by the legislature rather than going to the ballot. Ohio voters have rejected expanded gambling, primarily casinos, four times since 1990.
Six lawmakers, on a joint conference committee, are working to resolve differences between budgets proposed and/or passed by Strickland, the Ohio House and Senate by June 30.
The plan to install slot machines at horse-racing tracks could be inserted into the budget bill and never be debated on either chamber's floor because lawmakers can only reject or accept conference committee changes without discussion.
Lawmakers' two cents
Strickland said he has been meeting regularly with Senate President Bill Harris, R-Ashland, and House Speaker Armond Budish, D-Beachwood, and briefed them on his plan Friday morning.
Harris, who in the past has indicated he would not support expanded gambling without a public vote, was unavailable for comment and did not release a statement.
The Ohio Republican Party outlined the numerous times the governor has rejected the idea of slots or expanded gambling while enumerating the fundraisers Strickland has held at horse-racing tracks.
Budish embraced the governor's plan. ''While I look forward to reviewing the details of this proposal, I do believe that allowing video lottery terminals at Ohio's seven racetracks will help save Ohio jobs and avoid detrimental tax increases on Ohio families,' Budish said.
The Ohio Roundtable, an anti-gambling group that has successfully fought previous attempts at expansion, called on state lawmakers to reject the governor's proposal.
''Ohio voters did not approve a casino-style slot scheme in the vote to amend the Constitution and legalize the lottery in 1973. Difficult economic times do not give the governor a free pass to trash the Constitution and the results of four statewide elections,'' the Roundtable noted in a press statement.
Strickland laid the groundwork for the controversial slot machine proposal earlier this week by releasing doom and gloom details of 10, 20 and 30 percent reductions in spending by state agencies.
Northfield Park's odds
When voters rejected a statewide proposal to add slot machines to horse racetracks in 2006, Northfield Park had plans to spend ''hundreds of millions of dollars'' to renovate its facility, built in 1957, and build a slots parlor with up to 3,000 machines, a hotel and a concert venue at the track straddling the Summit-Cuyahoga County line.
At the time, owner Brock Milstein said he preferred to build a separate slots parlor on Summit County property.
''We believe [Friday's announcement is] a positive and we are clearly very interested in participating,'' Northfield Park spokesman Keith Gisser said about the governor's support for expanded gambling. ''This is potentially very exciting news.''
However, he said track officials need to examine the details of the proposal, especially the financial ones.
''We look forward to working with the governor and state of Ohio and Lottery Commission to put together a program that will be mutually beneficial to all parties,'' Gisser said.
Dennis J. Willard can be reached at 614-224-1613 or dwillard@thebeaconjournal.com.
Rick Armon can be reached at 330-996-3569 or at rarmon@thebeaconjournal.com
COLUMBUS: Facing a projected $3.2 billion revenue shortfall in the next two years, Gov. Ted Strickland reversed direction Friday and proposed slot machines at Ohio's seven racetracks, including one in Summit County.
Get the full article here.
Comments
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Posted 06:10 AM, 06/20/2009
Well it took a while but I believe we are the 40th state in the union to wise up, instead of a state that contributes to others budgets. My friends, family and co-workers have been going to neighboring states for years to enjoy the entertainment we like at our own choosing. Now (at our own choosing and you dont have to partake if you dont want too) we will be going to Northfield Park and or Thisledown (ty Gov.)and keeping our part of the billion dollars a year in our state. We are retired and been going since 1984 (at our own choosing) and have never seen any prostitution or riff raff as opponents call it because they just dont know. We currently go to Mountaineer and Meadows where the hair is gray the coffee is free and the casino workers are happy to have those jobs. Bravo Ohio you wont regret it. We are very happy for the racinos too. Two were about to go under by the first of july.
Tallmadge, OH
Posted 06:27 AM, 06/20/2009
Gov Stricknine has cooked his goose. We have said 4 times - no gambling in Ohio. He is ignoring the large majority of the voters wishes in Ohio and now he will pay by losing his next election. You can cut your way out of the Ohio economic problem and this gambling is just plain WRONG. If he feels so strongly then let the people vote on it in November and see how they fee. It would lose again by a strong majority. WE can only hope the legislature listens to us this time since Stricknine isn't.
Akron, Oh
Posted 06:33 AM, 06/20/2009
This is gonna tick off a lot of people, it'll be fun to watch.
Posted 06:58 AM, 06/20/2009
I am interested in knowing how all these naysayers are helping the Ohio economy.
You cant wear blinders and say no to industry, gaming, hydro-power or low cost energy plants, windmills, then spend our tax money buying it from other states or countries and expect to walk down the yellow brick road forever.
The Chinese are even buying their stake in the Cleveland Cavs. Why? because they can afford it, and we cant.
Akron, OH
Posted 07:53 AM, 06/20/2009
actually, the term "VLT" is not a "euphemism" but distinguishes the type of slot machine (it's a class II vs. class III machine)
I've not been in favor of gambling in Ohio in the past, but things are bad enough, jobwise, that we have to do something. There's a casino opening in Pittsburgh in August (slots only) and we are essentially surrounded by it. If you don't like gambling or don't have the money, don't go. We are to the point where we can't afford not to.
I suspect this will not even be noticed by a lot of people, despite the Beacon's attempts to sensationalize it.
Stow, OH
Posted 08:31 AM, 06/20/2009
Another lame attempt by our state idiot to raise money without really creating jobs.Ohio is so bass ackwards compared to other neighboring states .All this would do is save a few racetrack jobs,if they would have done it right ,like Penn.or WV did and actually BUILD a casino and new hotels.Go take a look at the casino they are building in Pitt. ,it is massive ,lots of construction jobs that were created,workers who pay taxes.
This idea is no better than his lame Keno machines in bars idea. Whats next? I know ,lets try and get a typewriter company to come to Ohio and build a factory.
akron, oh
Posted 12:48 PM, 06/20/2009
Makes more sense to have slots at race tracks rather than downtown Cleveland. Unsafe for anyone to go to downtown Cleveland!!! No way would most the people I know go to downtown Cleveland to play slots,
Posted 01:27 PM, 06/20/2009
Once it's here it won't go away. Gambling is a vert dirty business and it brings crime and corruption. I believe the people of Ohio have ovrwhelmingly stated time and time again NO to gambling. So far Strickland has scored a Big ZERO on accomplishment regarding his political promises he made when running for governor. Are we better off today then we were with Bob Taft?
Akron, Oh
Posted 06:07 PM, 06/20/2009
At least those who already drive to WV, PA and other surrounding areas, sometimes every other weekend, won't have to go as far and will spend their money in Ohio as well as provide a few more Ohioans a job who wouldn't have one otherwise.
Stow, OH
Posted 06:43 PM, 06/20/2009
@ starling ... you think its unsafe in Cleveland? Have you been to Thistledown in Warrensville Heights ? Why do you think Randall mall closed down? It was Rolling Acres x 10.There is no way in he** I would go to Thistledown at 9 at night without packing heat .
Tallmadge, Oh
Posted 11:27 PM, 06/20/2009
Good for you Governor.
Innovative thinking in a back to the wall situation.
It's time for the people to understand that Ohio is one of the most taxed states in the union. Have a little fun, and balance the budget at the same time.
Stow, OH
Posted 11:45 PM, 06/20/2009
What OMG said except, I think, as a general matter of respect for the position, the Governor should be referred to by his proper name.
nothfield, oh
Posted 02:55 PM, 06/21/2009
about time, ohio is swirling down in a toilet while our neibors are profiting from ohioins. lets keep the money here and also with unemployment being so high , this is a blessing!!!!!!!!
akron, oh
Posted 05:19 PM, 06/21/2009
I don't know what dream world some of you are living in Ohio has casino gambling already and you don't even have to be 18. Just go to the local friendly Jackson Community Fest-held every year right here in Stark Co. Had Black Jack, Dice and Wheel games and if you could see over the table you played-FOR CASH! only one area said you had to be 18 all the rest was anyone welcome. Watched over 100 plus junior high and high schoolers play and get paid with real money all while the Jackson township police was less than 20 feet away. Nobody says a thing and it goes on for the whole fest-this year was Wed-thru Sat. Was there from 7:30pm to 11:30pm watching it all and thinking how funny it was.
Posted 11:18 AM, 06/22/2009
Maybe if someone would put a decent slots/casino issue on the ballot, it would get approved. We don't know that Ohioans don't want gambling. We know that they don't want to pass a loophole laden scam like issue six was.
