Democrats Count Noses to
Stymie Slots
By Dan Genz
Capital News Service
Wedsday, January 29, 2003
ANNAPOLIS - Democrats said Wednesday they have the votes to thwart slots
legislation for one year.
"We can deliver a firewall to (House) Speaker (Michael) Busch, if he wants
it," said Delegate Peter Franchot, D-Montgomery.
Franchot claims to have the support of four committee chairmen, 16 members of
the black caucus, and, most importantly, 71 Democrats, the number necessary
to put the kibosh on slots legislation for one year. He also said he can
count on 20 Republican delegates to support the Democrats if a struggle over
such a moratorium opens on the floor.
The moratorium would delay slot machine legislation, allowing time to
commission a study on gambling, at the same time delivering a crippling blow
to the Gov. Robert Ehrlich's budget.
The budget requires $395 million from slot machines license revenue to
balance.
Ehrlich's spokeswoman Shareese DeLeaver called the moratorium an "exercise in
futility."
Another Ehrlich spokesman, Greg Massoni, blasted Busch, D-Anne Arundel, for
his reliance on taxes to cover the deficit, saying, "Where's the money going
to come from?"
House Majority Leader Kumar Barve, D-Montgomery, said a moratorium would
allow the state to deal from a position of strength.
The Democrats announcement came hours after the lawmakers who could legalize
slot machines at Maryland racetracks met before a packed crowd to hear the
first briefing on the topic.
Legislative Director of Policy Analysis Warren Deschenaux told the joint
committee hearing that slots could earn a gross between $800 million and $1.8
billion depending on the number of machines approved and the amount each
machine makes. The proceeds are to be split between the state coffers and the
horseracing industry.
"If you can solve the deficit without (slot licensing fees), it would be more
beneficial to wait," he said.
Without Ehrlich's slots proposal, expected later this week, House Ways and
Means Chairwoman Sheila Hixson, D-Montgomery, said some of the meeting's
speculation is premature.
"We haven't heard word one of the governor's plan."
She also said she will shelve the sales tax from her package also expected at
the end of the week.
Ehrlich's plan will need to earn the state $400 million in license fees and
earnings this year and $600 million in earnings next year in order to match
his budget plan.
Senate Budget and Taxation Chairman Ulysses Currie, D-Prince George's,
disregarded the sentiments of leading House Democrats suggesting a moratorium
on slots for this year, and said licensing fees from three existing
racetracks for slots could be included in this year's budget.
Deschenaux said the estimates would include $350 million in license fees from
four racetracks, which include a track under construction in Cumberland, and
$45 million in earnings by June of 2004.
House Appropriations Committee Chairman Howard P. Rawlings said, "Many of us
don't believe we can achieve this $395 million," and questioned Ehrlich's
assumption that slots can be up and running by next year.
Only Rawlings' plan for 10,000 slots at four racetracks has been introduced
so far, but a hearing has yet to be set.
His plan represents the low-end of the slot machine bills expected this
session.
The Maryland Horsebreeders Association submitted a plan for 18,000 slot
machines.
Ehrlich sent a memo to Legislative Services suggesting 13,500 slots at three
locations, with an undisclosed additional amount at Cumberland.
Copyright © 2003
University of Maryland
Philip Merrill College of
Journalism
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