An expanded gaming bill that would allow video lottery terminals at Kentucky racetracks cleared the House Appropriations and Revenue Committee today.
House Bill 2, sponsored by House Speaker Greg Stumbo (D-Prestonsburg) is projected to yield more than $1 billion in state revenue over the next five fiscal years, including $194.3 million in fiscal year 2010. Initial licensing fees paid by tracks with video lottery terminals, or VLTs, would total $102 million per year over five years, Stumbo said.
“We need to have as much stability in our revenue stream as we possibly can,” Stumbo told the committee, of which Rep. John Arnold of Sturgis is a vice-chairman.
Through the five-year payment plan on fees, Stumbo said the state would be assured at least $100 million a year in revenue during what could be a period of continued state budget shortfalls.
The bill is designed to help the state’s ailing horse industry by funding breeder incentives and attracting more horse races through bigger purses, or race winnings. Planned uses for anticipated state revenue in HB 2 includes, but is not limited to, income tax relief for the military, income tax relief of $250 per person or $500 per couple from the state motor vehicle property tax, horse farming sales tax relief, a fund for treatment of problem gamblers, a tourism and infrastructure fund and billions of dollars for education.
Under HB 2, at least $143 million a year would go toward education to fund capital construction at public schools and state colleges and universities, educational technology and equipment, and increase state funding per student in school districts across the state.
HB 2 now goes to the full House for its consideration.
– Kentucky Legislative Research Commission
