GLYNDON, MD (September 25, 2007) – Governor Martin O’Malley joined with Lieutenant Governor Anthony Brown today to outline his plan to protect horse-related open space, agriculture and jobs in the State of Maryland. Standing with horse breeders, owners, trainers, and others at Maryland Stallion Station in Baltimore County, Governor O’Malley outlined his support for slot machines in Maryland to preserve Maryland horse-racing and breeding industries.
The Governor was also joined by Don Litz, President of Maryland Stallion Station, and the Department of Labor, Licensing and Regulation Secretary Tom Perez.
“Horse racing in Maryland is some 250 years old and is an integral part of our state’s culture and tradition, but it is also a nearly-$600 million industry that employs about 18,000 people and preserves over 600,000 acres of open space across our State,” said Governor O’Malley. “As we continue to work with the Maryland General Assembly to reach consensus, I will introduce a slots proposal that keeps Maryland horse-racing competitive with surrounding states, preserves horse-related agriculture in Maryland, and invests in our shared priorities, like public education, school construction, higher education and community colleges.”
Under the framework announced by the Governor today, slots in Maryland would be state-owned, and recaptured slots revenue from other states would be invested in public education, school construction and higher education. The Governor’s plan would invest $425 million in priorities like education, and $125 million in school construction for higher education facilities, including community colleges. Currently, Marylanders spend $400 million playing slots in neighboring states such as West Virginia and Delaware.
“Today’s announcement is another important piece of Governor O'Malley's comprehensive, long-term budget solution,” said Lt. Governor Brown. “We've found the common-sense middle ground on slots and look forward to working with the General Assembly in November so we can get Maryland back on the path to progress.”
“Horse racing and breeding in Maryland are suffering, a fact bad enough on its own - but made worse by the news across our borders,” said Department of Labor, Licensing and Regulation Secretary Tom Perez. “The industries in West Virginia, Delaware and Pennsylvania are galloping past ours, mostly as a result of slots.”
In August, the Maryland Department of Labor, Licensing and Regulation released a comprehensive report showing the negative impact that slots have had on Maryland horse-related industries. According to that report, “the economic impact of slots on the horse racing industries in surrounding states is undeniable. Slots have generated thousands of jobs in these areas, and are subsidizing other priorities, such as education and transportation.”
The report also concluded that Marylanders playing slots in Delaware and West Virginia are subsidizing education and other priorities in these states to the tune of approximately $150 million per year, while Maryland’s horse racing industry has suffered significantly. A recent report by the Baltimore Sun showed that horse breeding operations in the State of Maryland have seen a rapid drop-off since Pennsylvania began heavily subsidizing its racing industry through slot machine proceeds this year. (Md. Not Holding its Race Horses, Baltimore Sun September 16, 2007)
“I am happy to welcome Governor O’Malley and Lieutenant Governor Anthony Brown back to Maryland Stallion Station,” said Don Litz, President of Maryland Stallion Station. “All of us here today representing the horse-racing industry in Maryland are hopeful that working together we can pass legislation to preserve and protect racing industry jobs, and horse-related agriculture and open space.”
Today’s announcement marks the fifth announcement by the Governor to address Maryland’s $1.7 billion structural deficit. The Governor has previously announced plans to reform Maryland’s income tax structure – making it more progressive for working families, to cut Maryland’s property tax rate by 3 cents, expand Maryland’s sales tax, and close corporate loopholes. Yesterday, Governor O’Malley announced his plan to invest $400 million annually in the Transportation Trust Fund and establish a dedicated funding source for higher education to stabilize college tuition rates.