But one senator says casino communities shouldn’t get too comfortable with the large amounts of tax money the casinos bring them.
“Nothing is off the table forever,” said Senate Tax Committee Chairman Luke Kenley, R-Noblesville.
Senate Republicans in 2004 supported a budget proposal that would have capped the amount of tax revenue that casino communities could keep, using the rest for the state budget. The idea died after the communities, their lawmakers and Gov. Mitch Daniels opposed the idea.
Senate Appropriations Committee Chairman Bob Meeks, R-LaGrange, said he will not suggest the proposal during the upcoming legislative session, which begins in January.
“I raised all that hell last time,” Meeks said. “I’m not going to do it again.”
Riverboat casinos bring about $235 million in wagering and admission taxes to cities and counties each year. State law dictates how governments must share the money, but local communities also sign development agreements with the casinos that bring millions for foundations, governments and other organizations.
Some lawmakers say the casinos have generated far more revenue than they expected, and that host communities should share the wealth.
Lawrenceburg has been a focus for some critics. The city received more than $25 million in admissions and wagering tax revenues in fiscal year 2006, according to the State Budget Agency, and also receives tens of millions from a local development agreement.
“They have so much they don’t know what to do with it,” Kenley said.
That's why he and Meeks hatched the plan two years ago to cap the tax revenue that local governments can keep and use the rest to shore up the state budget. A similar plan in the House — then controlled by Republicans — would have redistributed the money to other local governments.
Under the Senate plan, Lawrenceburg would have lost all but $2million in tax revenue. Harrison County would have lost about $19million annually, or 80 percent of casino tax receipts.
Switzerland County would have lost about $5.9million each year. Ohio County and Rising Sun would have lost nearly $5.9million.
Although lawmakers do not have plans to change the system this year, casino communities are working to share money with neighbors and spend their money carefully, said Harrison County Council President Gary Davis.
Harrison County shares 18 percent of its take from casino taxes with 10 small towns in the county, Crawford, Washington and Floyd counties, and New Albany. But Lawrenceburg was not so generous. To try to appease lawmakers, Lawrenceburg Mayor Bill Cunningham developed a plan for sharing about $10million of the city's casino cash annually for area economic development projects.
When the state began courting Honda Motor Corp. to build a plant in Greensburg, not too far from Lawrenceburg, the governor went to Cunningham, who agreed to contribute the $10million toward incentives for the project.
Daniels said then that the move should help stave off legislative efforts to redistribute the local revenue.
"What Lawrenceburg's done has really helped," Switzerland County Council President Mike Jones said. "But it's an issue we still need to watch."
Last week Meeks said that has made a difference.
"There's been a change in their attitude in how they spend the money," he said.
But Rep. Dennie Oxley, D-English, said there probably always will be some threat.
"As long as there's a pot of money sitting out there — as there is — and the state of Indiana is facing tough economic times, then that pot of money will be looked at by the legislature, just as it was two years ago," Oxley said.
But he said it won't pass this year and won't even be considered in the House.
The representative who most ardently pushed the plan in 2004 — Republican Troy Woodruff of Vincennes — lost in the November election. And Democrats took control of the House.
Those Democrats stood firm — with a couple of Republicans, including Billy Bright of North Vernon, who also was defeated — against the redistribution plan in 2004. Oxley said nothing has changed.
"Now that Democrats are in control, I don't foresee that coming up this year," he said.
The threat of lawmakers taking away the money has made it difficult to make long-range plans.
“Quite frankly, I wish they’d make up their minds one way or another,” he said. “Either tell communities they will keep receiving the funds or make a change and be done with it.”
Rep. Dennie Oxley, D-English, said the House would not consider such a proposal in the upcoming session, but said the issue would not fade away.
“As long as there’s a pot of money sitting out there as there is and the state of Indiana is facing tough economic times, then that pot of money will be looked at by the legislature, just as it was two years ago,” Oxley said.
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