As reported by the MA Municipal Association today, the FY09 budget for the Commonwealth just released today by Gov. Patrick links about almost 14% of next year's lottery proceeds to communities to the passage of his proposed 3 casino plan.
Under the budget submitted today, $124 million of existing Lottery local aid would be contingent on passage of this new revenue source.What this means is that the Gov. has in fact proposed to level fund local aid, but as currently structured, 14% of that would come from speculative casino revenues. I'm undecided about whether or not casinos are a good thing (my starting answer is 'no' but I've heard some persuasive arguments) but it seems a bit egregious to hold local aid hostage to passing the casino plan. To a degree, the Governor's budget balances on planned revenues next year from selling the 3 casino licenses (let alone future tax revenue).
Of course, the Governor's budget is just the first step. It will be important to see how the House and Senate handle this in their versions. Given the leadership's resistance to the casino plan, I'd be surprised if this allocation stands. If it did, Amesbury would stand to lose quite alot in local aid (if casinos are not authorized next year).
Update: the Boston Globe had this to say today (1/25) about the unlikely prospects of casino revenue anytime in FY09:
But budget observers say that even if Patrick's controversial casino legislation is approved by the Legislature, the state would probably not be able to collect the licensing money in time to help finance the fiscal 2009 budget, which begins July 1.
The casino legislation still has not had formal hearings, which are expected to last for months. And if the bill is passed, the state would have to establish a seven-member gaming authority, allow communities to hold referendums, solicit proposals from casino developers, and auction the licenses. Patrick's budget assumes all that could take place within the next 17 months.
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