Slots to cut deficit, says Md. Association of Counties

Washington DC (Map, News) - The Maryland Association of Counties is backing the governor's plan to use slots to help meet a $1.7 billion budget deficit, provided other methods also are used to close the revenue gap and the counties that host the slot machines are compensated for the machines' impact.

Gov. Martin O'Malley has recommended putting at least 9,500 slot machines throughout the state, eventually raising more than $600 million a year, with most of the money targeted for education and school construction - and saving the state's horse racing industry.

"Income from video lottery terminals could be an acceptable long-term state revenue source, were such a program responsibly crafted," the association said a statement from the organization, a nonprofit representing Maryland's 23 counties.

"A responsible video lottery terminal program must provide continuing fair and full compensation to the host subdivisions for impact expenses and respect local land use authority."

The issue may be left to the voters to decide in a referendum.

Montgomery County Executive Ike Leggett has said that although he is personally opposed to slots, he wants lawmakers to hear all of the governor's revenue proposals because without some changes, cuts to the counties will be "pretty devastating."

"Whatever we do, if we don't look at his plans seriously, we're going to have cuts to Montgomery County," Leggett told The Examiner.

The governor this week released a "doomsday" budget scenario in which he said failure to adopt his proposals, which also include a 20 percent increase in the state sales tax and raising income taxes for people earning more than $150,000, could result in a loss of $86 million for Montgomery County and $153 million for Prince George's County.

Jim Keary, spokesman for Prince George's County Executive Jack Johnson, said the county's top elected leader would support a referendum on slots because the "voters should decide."

According to Keary, Johnson had concerns over a 2005 slots plan discussed by the legislature because it would have resulted in slot machines at Laurel Park racetrack in Anne Arundel County without sending any cash to nearby Prince George's County.

"All the roads leading to Laurel are in Prince George's County, and the impact to both Laurel and Prince George's would be great if slots were added to the racetrack there," Keary said.

kmiller@dcexaminer.com

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