By SHELLY STRAUTZ-SPRINGBORN
Michigan Correspondent LANSING, Mich. — Michigan’s horse racing industry is another casualty of the state’s ongoing financial problems.
Last week, Michigan Racing Commissioner Christine White signed orders cutting 101 live race dates at tracks throughout the state for the remainder of the 2009 fiscal year ending Sept. 30.
“This was the last thing we wanted to do, but our hands are tied,” White said in a news release. “There is insufficient funding to get us through the fiscal year.”
In an executive order issued by Michigan Gov. Jennifer Granholm on May 5, the budget for the Office of Racing Commissioner (ORC) was reduced by $1.4 million with five months left in the fiscal year. Since then the ORC has announced layoffs and cut some of its services, including the discontinuation of its integrity hotline – a tool for horsemen and the general public to anonymously report any illegal activity in pari-mutuel horse racing.
While the actual days being cut remain under negotiation, in the Thoroughbred industry, Pinnacle Race Course in New Boston will see a reduction of 42 days of its original 82 days of racing.
Mount Pleasant Meadows will lose 18 of its 37 days. The harness racing industry also will see reductions at two tracks. Hazel Park Harness Raceway will lose 38 days and Northville Racing Corporation will be cut the three days it was scheduled in the fiscal year ending Sept. 30.
According to the ORC’s 2008 annual report, Michigan’s six licensed tracks, which include harness and mixed breed, along with Thoroughbred, conducted 1,737 combined days of live and simulcast racing. More than 1.1 million visitors wagered $231,226,291 in live and simulcast racing last year, with $7,451,713 in tax collected by the state – a 3.5 percent tax on all money wagered in simulcast races at each licensed track. Live wagering is not taxed in Michigan.
Total ORC revenue for the year was $8,130,580 with expenditures totaling $3,227,848. The ORC’s primary functions include regulatory oversight over all aspects of pari-mutuel racing including judge monitoring and rules enforcement, licensing, drug testing and more.
Local fairs throughout Michigan are also feeling the effects of the state’s budget cuts.
John Currie, president and fair manager for the Mecosta County Agricultural Fair in Big Rapids, said harness racing at the fair will be cut from its normal five days to just one day this year because prize money also was reduced as part of the state’s budget crisis.
“The governor’s executive order took all the money away,” Currie said.
During a normal year, Currie said his fair would have about $250,000 in prize money up for grabs during five days of racing. He said the fair averaged about 100 horses per night in 12-30 races.
With the fair set to open July 6 and run through July 11, the reduction in harness racing is leaving a void in the fair’s schedule that can’t be replaced at this late date.
“We’re probably going to have two dark nights with nothing going on in front of the grandstand, which we have not had in the history of the fair,” Currie said.
He is also anticipating negative effects on “parking, midway, concessions … everything. It’s all going to trickle down,” he said. “When people come to the fair, it’s a big week in town. They buy gas, spend money in restaurants.”
It’s going to have a big impact,” Currie said.
Prize money for racing at local fairs is part of the Michigan Department of Agriculture’s (MDA) budget.
It was cut after the MDA’s budget was slashed by $6.8 million in May as part of the governor’s executive order. |
