Stumbo adds $1.3 billion in school projects to slots
House Speaker Greg Stumbo, D-Prestonsburg
By John Cheves – jcheves@herald-leader.com
FRANKFORT — House Speaker Greg Stumbo upped the amount of slots revenue he wants to spend on new buildings and equipment at public schools to $1.34 billion on Wednesday as he pressed lawmakers to support his racetrack slots bill.
One such item on the projects list would be a $130 million science research center for the University of Kentucky in Lexington, said Rep. Harry Moberly Jr., D-Richmond. The full projects list is still being drafted, as is the slots bill, Moberly said.
Stumbo encouraged lawmakers to tell him about crumbling schools in their communities that they believe deserve state money. But since the education funds would come from slot machines, House members would be foolish to expect any unless they vote “aye” on his slots bill, Stumbo said.
“It’s not vote-buying,” said Stumbo, D-Prestonsburg. “It’s just saying that if you feel your district has this need, then you need to step forward to the plate.”
Stumbo acknowledged that his slots bill — initially touted as a way to save Kentucky’s horse industry — “stumbled out of the gate” during this week’s special legislative session because of opposition to expanded gambling. But adding new schools as a sweetener could bring the requisite 51 House votes needed for passage, perhaps by Friday, he said.
“We can’t do a thing that’s more progressive, we can’t do a thing that’s better for our children, than what we’re proposing to do right here,” Stumbo told members of the House Licensing and Occupations Committee, who heard discussion on the slots bill but did not vote on it. “That’s well worth whatever risk there might be in supporting this legislation.”
Under the bill as initially proposed by Gov. Steve Beshear, Kentucky’s horse racetracks could offer slot machines, with the revenue being split between the tracks’ owners, the state and the horse industry, by way of fattened racing purses and breeder incentives.
The current slots proposal estimates they would generate more than $190 million in additional state taxes annually, which is where the school and university funds would be found.
Slots opponents said they’re witnessing a shift by Stumbo and other House Democratic leaders from arm-twisting, which is acceptable politics, to vote-buying, which is not. There is no other way to describe offering new schools to lawmakers in exchange for backing Stumbo’s bill, critics said.
“Education doesn’t have anything to do with gambling. If this is such a good bill on its own merits, then why do they have to keep adding things to get people to vote for it?” asked Martin Cothran, spokesman for Say No To Casinos.
“Now we have lawmakers who risk making their constituents angry for supposedly voting against a new school back home because they voted their conscience on gambling,” Cothran said.
Rep. Ruth Ann Palumbo, D-Lexington, who already supported the slots bill, said Stumbo is simply offering specifics on how the new gambling money could be spent. Only lawmakers who are wavering on the bill would cast their vote based on the new schools funding, not lawmakers who are firmly opposed to slots, she said.
The House budget committee is expected to get a copy of the bill and vote on it Thursday.
In his presentation to the House panel on Wednesday, Stumbo said his bill would charge higher one-time licensing fees to racetracks than Beshear’s proposal — a total of $510 million in fees, rather than Beshear’s $360 million — but he would give the tracks five years to pay, compared to the governor’s two years. Also, the tracks might be eligible for a state tax break for tourism.
Stumbo said he also would earmark $2.5 million a year of the state’s share for gambling addiction treatment and $5.5 million a year, with eventual increases to $15 million, for regional tourism and infrastructure development.
But Stumbo’s biggest earmark would be $143.8 million a year, mostly for payments on $850 million in bonds for public school construction, $450 million in bonds for state university construction and $47 million in bonds for state university technology and equipment.
It also would cover $19 million a year in additional capital spending for school districts based on their student enrollment, which would benefit more affluent, faster-growing counties.
When the House decides which public schools need to be replaced, it will use the state’s list of Category 5 schools that are 40 years old or older, Stumbo said. But he added that if House members think they have a school mistakenly placed in Category 4 — 30 to 40 years old — House leadership will consider individual requests to reclassify a school and make it eligible for slots funds.
Of course, there won’t be money available for schools unless the legislature passes the slots bill, Stumbo said.
UK spokesman Jimmy Stanton said the proposed science research center was “our top capital priority,” and UK supports the House’s move to invest slots money in education. Similarly, the Kentucky Education Association, which represents more than 40,000 educators, this week endorsed the slots bill and specifically cited the possibility of new schools money.
But that linkage might not last. Senate President David Williams, R-Burkesville, who opposes expanded gambling, said he will separate slot machines from schools funding if Stumbo’s bill arrives in the Senate. It’s possible senators could find other money for school projects, Williams said.
“Now they are just brazenly buying votes. Some things don’t change, I guess,” Williams said. “I’ve got a feeling it doesn’t matter if it works or not. … Vote-buying won’t work over here.”
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IMHO | Jun 17, 2009 | Reply
So $700 million for new schools plus $130 million for a new science building. Man, by tomorrow, the casinos will be generating $1 trillion a year with the way this math is working.
Cranky Crawfish | Jun 17, 2009 | Reply
Why not just offer everybody free weekly maid service and get it over with for crying out loud. What about EKU Harry?
Rodney | Jun 17, 2009 | Reply
Here we go again!! By the end of the week it will be a Chicken in Every Pot!!
A new broom sweeps clean. We need a new broom in Frankfort to sweep out the legislature.
Green | Jun 17, 2009 | Reply
Perhaps we should first use this money to cover the state budget deficit before we start building more buildings for UK? I mean, just a thought.
IMHO | Jun 17, 2009 | Reply
C’mon Green, unless UK is in a state of constant construction, no one knows what’s going on.
Mike | Jun 17, 2009 | Reply
Well considering how crooked slot machines are..I could see 1 Trillion dollars being made from Slots. I wish they’d give true gamblers what they want (Black Jack). Black Jack is the only casino game where a player has a good chance of winning. Slots are just donation machines. How about instead of VLT they have black jack tables. Then I’d come and gamble. But they won’t so that is why I’ll continue to head across the river to Indiana for table games.
Clay | Jun 17, 2009 | Reply
If we would legalized postitution, we could fund scholaships for all the hookers in the state or make them state employees with all the holidays and retirement benefits. Then we could fund Fayette County’s Airport, Library and the League of Cities.
THERE IS A LARGE RAINBOW OVER THE COMMONWEALTH
Michael | Jun 17, 2009 | Reply
we don’t need the money to pay for out budget shortfall – the feds are taking care of that for us – we just need to drain more money from kentuckians in every way possible – then spend it as quick as we can
Rodney | Jun 17, 2009 | Reply
So we need slots to create more revenue to get out of debt…er to spend on more pie in the sky. QUIT SPENDING MY MONEY!!! LET ME KEEP IT!!!
Dave | Jun 17, 2009 | Reply
Out come the pigs for fresh slop at the trough! Why don’t we put the slots in the Statehouse so the Senators can just suck the cash right out the bottom.
IMHO | Jun 17, 2009 | Reply
If UK can’t give their employees at a minimum, an annual COLA, then forget the new buildings. It’s time to put a stop to the insanity.
Pat | Jun 17, 2009 | Reply
It has been said Rep. Moberly is the best the Commonwealth has ever seen – I like how Stumbo calls him up when he needs him. I like Stumbo and Adkins they will do well. But Moberly should run for Speaker ProTem. That would be an unbelievable team.
IMHO | Jun 17, 2009 | Reply
The number has now grown from $830 million ($700+$130) to $1.34 billion in just four hours. At this rate, casino receipts in Kentucky will be able to fund the trade deficit for the entire U.S.
K Stagg | Jun 17, 2009 | Reply
Stumbo and Moberly? I like it. Eddie Munster and Porky do Frankfort.
Delores | Jun 17, 2009 | Reply
Here we go again. More scare tactics. NO,NO
slots needed. Ky. need to learn how to budget tax payer’s money and live within that budget.Keeneland on the other hand need to solve their own problems.If the present board can’t deliver then they need a new board.We must learn to march to our own tune and not other states.Not another penny need to go to U of K,
Mike | Jun 17, 2009 | Reply
I hope there are a lot of lawmakers who are firmly opposed to the slots, because, if they are not now firmly opposed, they could be swayed by the threat of unhappy constituents, as the article suggests. Kentucky does not need this. Everyone needs to remember this come election time, whether we go with slots or not. Then ask, “Where’s the money”? Bet you it won’t be funding schools in amounts anywhere near what is being stated by Mr. Stumbo.
J | Jun 17, 2009 | Reply
How is adding money for schools doing anything to fix the budget “shortfall”. Not that I have anything against improving our schools, but this special session was to address the budget and cuts to state agencies. It does not appear that this is happening.
fooledagain | Jun 17, 2009 | Reply
Amazing, $700 million in “projected” revenue leads to $1.3 billion in projects. No wonder the state is constantly broke. Maybe with the new school money, the legislature can get math or economics lessons about income and expenditures.
beth | Jun 17, 2009 | Reply
Why should Kentucky bail out the horse industry. Did Michigan bail out the Car industry no. The lottery still has not helped the schools that much, so how will this help. Did you ever thing that B.Jones and the Governor are big horse farm owners. Cut the non-merit state employees salary down to the merit state employees salary. This may help weed out the unnecessary employees.
Largest Al | Jun 17, 2009 | Reply
Where is the lottery money?
Why can’t these morons figure out they cannot spend more than we take in!!!!
Basic economics!
Elect me – I will keep it simple
Mike | Jun 17, 2009 | Reply
Saying it’s not vote buying is like a former U.S. president saying “I did not have sex with that woman”.
brenner | Jun 17, 2009 | Reply
Does it really surprise anyone that vote-buying is taking place? Eastern Kentucky politicians have written the book on it. Oh, where is Stumbo from??? That’s right, Prestonsburg. You’ve done them proud, Gregory. This goes to show you how out of touch this region is from the rest of the state. He is their representative, after all. What ever happened to taking care of the budget short fall in the first place? Any mention??? $300K for this weeks session. I guess they all needed summer vacation money.
wblex | Jun 17, 2009 | Reply
Wow! It’s already jumped from $700 million to 1.3 billion. They just reached up and grab another number.
VOTE THEM ALL OUT!!
UK96 | Jun 18, 2009 | Reply
I sure wish my salary could jump like this number game.
C.L. | Jun 18, 2009 | Reply
Stumbo…..you are nothing but slime. This is the final straw, you have insulted every Kentuckian by trying to bribe our elected officials to help your Gambling/Horse buddies out. The Horse Industry can get together and help themselves if they are in such dire need! I myself think the Bourbon Industry is far more of a \\\”Signature Industry\\\” for our State rather than horses. More people around the World enjoy our Bourbon than they do the Thorobreed Horses. We see how you treated the Bourbon Industry in the Spring, a new tax on top of already excessive taxes for them. The Democratic Hiearchy in Frankfort reeks of coruption and arrogance and I am ready for all of them to be gone. JACK CONWAY DO YOUR JOB & START INVESTIGATING SCUMBO & STEVIE FOR VOTE BUYING! Wake up Kentucky, you are being ignored and bent over…….AGAIN!
js | Jun 18, 2009 | Reply
Perhaps the slots will pay for national health care and the zillions of dollars that Obama is spending. Even better would be a million dollar check to each Kentucky family so that they could afford to play the slots. Stumbo will make millions on this deal, but all other claims make about as much sense as has written here.
Global Online Shopping | Apr 21, 2011 | Reply
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