House passes slots bill 52-45

By Ronnie Ellis / CNHI News Writer

With an overflow crowd watching from the balcony, the Kentucky House of Representatives voted 52-45 Friday morning to approve video lottery terminals at existing horse tracks. Three, including House Caucus Chairman Bob Damron, abstained.

Local representatives — Marie Rader, R-McKee; Charlie Siler, R-Williamsburg; Jim Stewart, R-Flat Lick; and Tommy Turner, R-Somerset — all voted against the measure.

The debate lasted nearly three hours on Speaker Greg Stumbo’s bill – the only bill taken up Friday – which will use proceeds to fund breeders’ incentives, boost purses and fund a major construction of new elementary and secondary schools.

Stumbo said the bill will not only save “Kentucky’s signature industry” but will produce a “far greater benefit than that – it’s a plan that will give education the boost it truly needs.”

The plan would use much of the state take from the slots for debt service on bonds which would pay for up to 160 new elementary and secondary school buildings. Rep. Harry Moberly, D-Richmond, who helped put the plan together said it will fund between $120 million and $140 million of annual debt service on more than $1 billion in bonds.

But there’s a hitch. Those appropriations are in the budget bill not the one the House approved Friday and only members voting for the bill were guaranteed new schools in their districts.

“As we have refined the list (of schools), it’s gone down and we’re still working on it,” Moberly said of the total cost.

Moberly called Stumbo’s school plan “ingenious” and will “better address our elementary and secondary building plan better than anything we’ve ever done,” Moberly said.

But most of the debate centered on protecting the horse industry from the bill’s proponents and the dangers of expanded gambling from opponents.

“What brought us here were the urgent needs of a struggling industry – and not just any industry,” Stumbo said on the floor. “We call it our signature industry. Our signature industry is truly in trouble”

Rep. Robin Webb, D-Grayson, said there aren’t many thoroughbreds in Carter County, but incentives from the slots measure will benefit pleasure, show and trail horse breeds in addition to thoroughbreds.

“The spotlight is on us as the global leader in equine education; the spotlight is on us as host of the World Equestrian Games in 2010,” Webb said. “It is not the time to falter.”

Rep. Danny Ford, R-Mt. Vernon, said the bill is about more than gambling, it’s also about the impact on the lives of children and the impact gambling will have on families. He said members shouldn’t be swayed the lure of new school buildings or the support of the Kentucky Education Association.

“This bill is not about education – it’s about gambling.” Ford said. He asked the House not to vote for the bill because “of what someone’s promised you or because they threatened you.”

Stan Lee, R-Lexington, warned those voting for the bill. “This vote is the one that’s going to follow you to the ballot box.” And he said slots could actually harm horse racing by luring away bettors from the races.

Republican Leader Jeff Hoover of Jamestown said he has always opposed allowing expanded gambling, and one reason because he didn’t believe Frankfort lawmakers have the discipline to use the money the state would receive wisely and would instead use it for projects, pushing the state’s debt higher. He said that’s precisely what Stumbo’s plan does and it provides no money for current problems with which the General Assembly has wrestled – nothing for the state retirement funds, nothing to restore the balance in the state rainy day fund, and “problems we discuss year after year.”

Rep. Lonnie Napier, R-:Lancaster, tried to come down on both sides of the issue. He said no one was more opposed to expanded gambling, that he won’t even buy a raffle ticket from charities. But, Napier reasoned, if this bill failed, proponents of expanded gambling would be back seeking a constitutional amendment which would allow full-fledged casinos in places like Berea.

So, Napier said, he was voting yes in order to restrict gambling to horse tracks where it already exists.

But in the end, Stumbo had the votes rounded up, and the measure passed. It will now go to the Senate where Senate President David Williams, R-Burkesville, said it cannot pass and where Appropriations and Revenue Committee Chairman Charlie Borders, R-Russell, said it cannot pass his committee.

RONNIE ELLIS writes for CNHI News Service and is based in Frankfort. Reach him at rellis@cnhi.com.