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EXPANDED GAMING BILL

Westfield Evening News column

By State Representative Don Humason, Jr.

April 17, 2010

 

According to the Washington-based Tax Foundation, April 14 was Tax Freedom Day for those of us who live in Massachusetts.  Tax Freedom Day is the date on which Americans have worked long enough to have earned enough money to pay their tax obligations to the federal, state, and local government.  It’s different in each state.  In the Bay State we have to work a few days longer than most other states.  Connecticut is the latest with tax f reedom occurring on April 27.  Alaska and Louisiana celebrate earliest on March 26.  For more information, go to www.taxfoundation.org/taxfreedomday.

The House Ways and Means Committee released its version of the Fiscal Year 2011 state budget on Wednesday.  I am currently reviewing the budget and will likely sponsor or cosponsor dozens of amendments to try to improve the budget for my constituents in Western Massachusetts.  House budget debate is the week on April 26.

It does not sit well with me that in the HW&M proposed budget overall state spending increases 3.2% but local aid to cities and towns is cut by 4%.  It’s all a matter of priorities.

After seventeen hours of debate over two days this week, by a vote of 120 to 37, my colleagues and I in the House of Representatives passed House Bill 4591, expanded gaming legislation, designed to create jobs and stimulate economic growth throughout the Commonwealth.  I voted in support of the bill.

The legislation, which authorizes two resort casinos and up to 750 slots at each of the state’s four racetracks, passed with bipartisan support by a veto-proof margin. The proponents say the bill will create an estimated 15,000 jobs in the Commonwealth, deliver $260 million in up-front licensing fees to the state and bring an estimated $300 – 500 million in annual tax revenue.

“This legislation is a jobs bill that will create economic opportunity and keep our residents employed,” House Speaker Robert A. DeLeo said. “It is a balanced approach that maximizes the benefit to Massachusetts and helps our economy by directly creating jobs and revenue over the short term and long term. My concern is for the workers who struggle every day to make a living, and this bill will be a significant help to folks across the Commonwealth who are trying to support a family.”  

“After a thorough and lengthy debate in the Massachusetts House of Representatives, expanded gaming in the Commonwealth of Massachusetts is now one step closer to a reality,” said House Minority Leader Bradley H. Jones, Jr. “While I am pleased with the show of bipartisanship, I am particularly happy that our cities and towns across the state will be the recipients of a new local aid revenue stream.”

In addition to creating constru ction jobs and permanent jobs at two resort casinos, the bill allows slot machines at each of the state’s four racetracks to help Massachusetts grow and retain jobs at these venues while bringing much-needed revenue to the state. The bill directs all revenue generated from slots to cities and towns in the form of local aid until resort casinos are operational.

Once resort casinos come online, the bill dedicates the state’s annual gaming revenue as follows: 30 percent to a new Gaming Local Aid Fund to help cities and towns fund essential government services; 30 percent to an Education Fund; 30 percent to restore the Commonwealth Stabilization Fund, which has been utilized to assist the state through this recession; 7 percent to a Local Capitol Impro vements Fund; 2 percent to a Community Mitigation Fund to offset costs incurred by communities affected by gaming; and 1 percent to the Massachusetts Tourism Fund.

 

From the revenue generated through licensing fees, $50 million will go toward targeted investments in the state’s manufacturing industry, $40 million will be dedicated to capital projects in cities and towns, $25 million will be dedicated to workforce development programs and $3 million will be used to promote tourism.

 

To ensure ample gaming development which will maximize jobs as well as revenue, the bill requires casino applicants to commit to spending a minimum of $500 million in capital investments in order to receive a license. The bill also requires each of the four racetracks to commit to spending a minimum of $75 million in capital investments within two years of receiving a license.

To oversee expanded gaming in the Commonwealth, the legislation creates the Massachusetts Gaming Commission, headed by a five-member professional board appointed by a majority vote of the Governor, Attorney General and Treasurer. The Commission, which will be funded by fees and assessments on gaming operators, will administer casino licensing based on a rigorous regulatory scheme.

The legislation also acknowledges the potential social costs of gaming, dedicating $5 million annually to addiction treatment programs. This funding will derive from an annual assessment placed on all gaming operators.

The bill next goes to the Senate which will make many changes and additions of its own in a precursor to a long Conference Committee process.

 

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Disclaimer:  The views expressed in this column are those of the author and not the staff, editor, or publisher of the Westfield Evening News.

Representative Don Humason and his Chief of Staff Sarah Latour may be reached at their Westfield District Office, 64 Noble Street, Westfield, MA 01085, 568-1366. Representative Don Humason may be reached at his Boston office, State House Room 542, Boston, MA 02133, (617) 722-2803. Email address: Rep.DonaldHumason@Hou.state.ma.us Website: www.donhumason.org

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