Local officials expressed concern that the county could see reduced funding from riverboat gambling.
A hearing before a General Assembly committee is scheduled today on a bill that could alter the distribution of gaming funds to southeast Indiana, including Fayette, Union and Franklin counties.
Senate Bill 528 “has the potential to reduce funding to the county by $180,000,” Fayette County Economic Development Group chair Pete Bell told the Connersville City Council Monday.
That’s the money Fayette County receives from the city of Lawrenceburg, which gets it from the Hollywood Casino.
Franklin County receives a $500,000 annually plus more than $100,000 in additional funding.
The bill “would also take away our ability to get grants for major projects,” Bell said.
Lawrenceburg’s regional economic development grant program has been used for local projects including the rehabilitation of the former Visteon property and the purchase of 58 acres for high technology industries. The state used some of it to help attract Honda to Greensburg.
Sperry-Rice and Batesville Tool and Die have received grants to increase job creation at plants in Franklin County. MBC Group is scheduled to receive a grant this year.
Union County used it to buy land in Cottage Grove for an industrial park and for sewer improvements in West College Corner.
“We’ve been working with the Lawrenceburg grantees to get this bill set aside,” Bell told council. “It will impact the whole riverboat program. We need to show the committee our support for them to continue to support us.”
SB 528 passed out of the Senate 32-18 in February with local senators Jean Leising, R-Oldenburg, and Allen Paul, R-Richmond, voting in favor. Leising is a co-author on the bill.
Leising said by telephone Tuesday that Gov. Mike Pence does not want to expand gambling by placing live table games at Indiana Downs in Shelbyville or more riverboats or boats on Lake Michigan.
“I have heard the bill will be drastically amended in the House,” she said. “I don’t know what that means in regards to money for counties that was agreed to in 2002. I doubt that no matter what happens with the bill that it will be cut that much, maybe $6.2 million overall for Lawrenceburg. Last year, Lawrenceburg received more than $5.7 million. When Lawrenceburg tells those counties they won’t be able to share anymore, that’s probably not completely accurate.”
Gaming revenue had been the the No. 3 revenue source for the state. In the past year, it has fallen to No. 4, she said.
In Leising’s senate district, Fayette, Franklin and Decatur counties share revenue from Lawrenceburg. Ripley County shares fromm the casino at Rising Sun, Shelbyville, with a racino that wants live table games, and Rush and Henry are non-gaming counties and receive only a few thousand dollars each.
Adding to the issue is that the city of Lawrenceburg is under FBI investigation. Legislators are concerned that someone involved in the program has done something wrong, she said.
According to Fox 19 in Cincinnati, the FBI served a subpoena on Lawrenceburg officials in late December 2012 for records of all the loans and grants since 2007.
“It’s being thrown into everyone’s face, including mine,” she said. “I do think though we have to address the issue. Something is going to have to be done because people in non-gaming counties and in my two non-gaming counties, they’re not thrilled about the state subsidizing riverboat counties.”
Lawrenceburg has done a good job of increasing the anxiety of the 10 counties by telling them they won’t get any more money. If that’s the case, maybe the state should take over the fund, she said.
By keeping her name on the bill as a co-author, she has more input into the bill.
“I don’t agree with the governor that putting live games in Shelbyville is an expansion of gaming because they have electronic games,” she explained. “I see it as a way to draw people to the live games and as an employment tool for the county.”
Paul represents Waterloo Township in Fayette County, and Union, Wayne, Randolph counties, and the eastern portion of Franklin County. In a prepared statement, he said the goal is to keep the bill moving through the legislative process.
“I have areas in Senate District 27 that are fighting for revenue from casinos, and I felt it was necessary for the bill to continue through the legislative process so those voices can still be heard at the table when we start negotiations,” his statement said.
Bell said local officials will be attending the hearing to speak against the bill.
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