FISCAL NOTE
FUND(S):
Table Games Fund
Sources of Revenue:
Special Fund
Legislation creates:
Neither Program nor Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
At such time as the voters of Jefferson County approve table games for Charles Town Races, the percentage of "adjusted gross receipts" from table gaming from all four racetracks that will be given to municipalities, county commissions and the Jefferson County Board of Education will double and the rates for the state will proportionately decline. This bill would only affect the rates for the counties where licensed racetracks are located and the State Debt Reduction Fund.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2009
Increase/Decrease
(use"-") |
2010
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
0 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
-3,461,318 |
-4,016,940 |
Explanation of above estimates (including long-range effect):
The estimated losses in the matrix above do not include the added table games revenue available because Charles Town Races' table game tax will be added to the statewide mix. In 2007 when the Racetrack Table Games Act was passed, the Lottery estimated that the State Debt Reduction Fund would receive $9.8 million from Charles Town in its first year of table games operation and $13.3 million thereafter. With the rate change embedded in the bill, the actual revenue to the State Debt Reduction Fund would be $7.9 million for the first year and $10.8 million thereafter. This would offset the decreased state revenue from the other three racetracks (see the matrix, above) for the following net gains:
Year 1 - $6.34 million
Year 2 - $6.80 million
Year 1 could be the state's fiscal year 2010 or it could be 2011 depending on how long it would take Charles Town Races to construct venues, obtain equipment and supplies, and train a new staff. If year 1 is not until FY 2011, the losses to the State Debt Reduction Fund are found in the matrix above.
Memorandum
The draft is not in the classic rate format where the new rates are actually stated in the text of the bill. To accomplish this fiscal note, the Lottery assumed that the following changes would be made in rates:
Before After
Racetrack Counties 1% 2%
Municipalities in racetrack Counties Share 2% Share 4%
Racetracks w/in Wheeling & Nitro Split 1/2% Split 1%
Debt Reduction Fund (State) 76% 0f 24% 71.9% of 20.5%
Because the intent of the bill is to keep all other recipients unchanged in their respective proportionate shares, three other rates would change because they would be percentages of of 20.5% rather than 24%:
Racetrack Pensions 4% of 24% 4.7% of 20.5%
Non-Racetrack Counties 10% of 24% 11.7% of 20.5%
Non-Racetrack Municipalities 10% of 24% 11.7% of 20.5%
Person submitting Fiscal Note: John Melton
Email Address: jmelton@wvlottery.com