Governor Threatens Closing Horse Racing In Pennsylvania
PITTSBURGH (KDKA) -- No horse racing in Pennsylvania?
That's what Governor Wolf threatened industry leaders on Thursday.
"We were all taken by surprise," says Jeff Kotula, CEO of the Washington County Chamber of Commerce and the Tourism Promotion Agency.
The industry statewide employs over 23,000 people and generates $1.6 billion in economic activity.
But Wolf says -- because the legislature has not passed his budget with stop gap funding for racetracks -- the industry must come up with additional dollars or face closure.
Kotula says that would shut down an important regional asset.
"The Meadows Racetrack & Casino employs about 1,300 people. About 20 percent of those are directly involved in the horse racing industry."
"That would just be detrimental to our economy and the people and families that depend on racing in Washington County and this region," adds Kotula.
Along with all the businesses that opened up around the meadows, it adds up to jobs, says PA Rep. Brandon Neuman, a North Strabane Democrat.
"For every horse trainer, you're looking at four to five to one when it comes to jobs," Neuman told KDKA political editor Jon Delano. "It really provides family sustaining wages for thousands of people right here in Washington County and western Pennsylvania."
But, ironically, casinos have hurt tax revenue from racetracks.
Part of the problem is that the legalization of slot machines and table games in Pennsylvania has really impacted horse track betting. Fewer people betting on horses means annual tax revenue is down to about $10 million when the state's Racing Fund needs $20 million to cover all the horse drug testing and other fees.
Moreover, state Auditor General Eugene DePasquale says the Racing Fund was wrongfully depleted over the years.
"Number one, there was mismanagement of the fund at the Department of Agriculture, and, two, was during the budget process of several years when they were putting together the state budget they would take money out of that fund, raiding that fund for other purposes," notes DePasquale.
Can this be resolved quickly?
The state Senate has passed a bill awaiting action in the House -- and passing a budget would help, too.
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