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" (AGR) from table gaming that goes to municipalities in counties with racetracks, county commissions in racetrack counties, the Jefferson County Board of Education, and for the Lottery's administrative costs will increase.
    
    Counties with Racetrack Table Games: 2% of AGR instead of 1%
    Municipalities within Counties with Racetrack Table Games: 3% of AGR instead of 2%
    Lottery's Administrative Costs: 4% of AGR instead of 3%
    
    Percentages for purses, the Thoroughbred Development Fund and the Greyhound Breeding Development Fund, and for Nitro and Wheeling will not be changed.
    
    The remainder to go to the Racetrack Table Games Fund will be changed because there will be a change in percentage it comes from:
    State Debt Reduction Fund: 76% of 21% (instead of 24%) = 15.96%
    Pension Plan for Racetrack Employees: 4% of 21% (not 24%) = 0.84%
    Counties Without Racetrack Table Games: 10% of 21% (not 24%) = 2.1%
    Municipalities Without Racetrack Table Games: 10% of 21% (not 24%) = 2.1%



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 6,200,873
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 0 45,179,387


Explanation of above estimates (including long-range effect):


    It is projected that the fiscal year upon full implementation will be 2012. The $45,179,387 is the increase in the 35% privilege tax off of tabl games. Without the passage of this legislation, the projection for 2012 is $36,312,868. With the passage of legislation, the projection for 2012 is $81,494,255. The "total cost" reflect's the maximum for the Lottery's administrative costs.
    
    Even though the State Debt Reduction Fund, the pension plan for racetrack employees, split for counties without racetrack table games, and split for municipalities without racetrack table games will be smaller, the increase in revenue should off-set it. In other words, there will be a smaller percentage of a much greater number.



Memorandum


    



    Person submitting Fiscal Note: Kate Casto
    Email Address: kcasto@wvlottery.com