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Advocacy Letters to State Leaders MMA letter to Legislature regarding proposals to expand gambling
The Honorable Brian S. Dempsey, House Chair
The Honorable Karen E. Spilka, Senate Chair
Committee on Economic Development and Emerging Technologies
State House, Boston
Dear Representative Dempsey, Senator Spilka and Members of the Committee,
On behalf of the cities and towns of the Commonwealth, the Massachusetts Municipal Association would like to offer comment on the several proposals before you for a public hearing today that would expand gaming here in the Bay State.
Expanded gaming is an important issue for cities and towns because of the projected impact on the Lottery that now provides well over $700 million a year to help pay for municipal and school services and reduce reliance on the property tax. City and town officials also have concerns about the impact of major gaming facilities on local roadways and public infrastructure, public safety, and other local government services.
While individual municipal officials have taken positions on expanded gaming, the MMA has traditionally not weighed in on behalf of its members collectively due to the wide variety of strong positions on the issue. Instead, the Association has focused its attention and policies on the issues that we feel must be addressed if the Commonwealth makes the decision to move forward on gaming. This is the focus of our written testimony to your Committee.
MMA representatives met with Executive Branch staff in 2007 prior to release of the Governor’s bill (House 4307) to talk about municipal issues related to expanded gaming, mainly Lottery and impact mitigation concerns, and we generally support provisions in that bill designed to address those issues. We understand that this bill is not before the Committee today, but wish to make note of work done previously to address municipal concerns.
MMA representatives have met with legislators (and continue to schedule meetings) and appreciate the consistent understanding of revenue and cost mitigation issues. MMA member municipal officials continue to meet with advocates from all perspectives on the gaming issue in an ongoing effort to offer the most helpful recommendations that represent a general municipal government position.
Impact on the Lottery
Major studies conducted on the impact of various forms of expanded gaming have shown that a material impact on Lottery revenues can be expected. The 2006 study prepared by Christiansen Capital Advisors LLC for Treasurer Timothy Cahill (also Chairman of the Massachusetts State Lottery Commission) projected that Lottery revenues could fall by almost 4 percent per year in the first two years following the introduction of gaming machines (including slot machines). After the initial decline, revenues would start to grow again, eventually returning to pre-gaming machine levels after five years. While this study was conducted prior to the recession that began in 2007, the underlying analysis remains solid.
Cherry Sheet Lottery revenues have been the only significant source of state assistance for municipal (non-school) purposes since fiscal 1990. Any decrease would have a major negative impact on the ability of cities and towns to pay for public safety and other municipal services and would result in higher reliance on the property tax. Various bills, including the Governor’s 2007 proposal, would set aside a portion of casino/slot machine revenues to cover the loss of Lottery revenues.
The MMA supports strong language in any gaming legislation that would protect Cherry Sheet general government aid (currently $935 million) and restore aid to prior year levels through the use of new gaming revenues. New gaming revenues should be used to help fund a permanent and sustainable municipal aid program, building on the current general municipal aid program, to help pay for police, fire and other municipal services.
Local and Regional Impact Mitigation
Cities and towns that have been named as a possible host for a gaming venue have been concerned about the infrastructure and service delivery costs associated with a major destination resort casino facility or adding gaming at an existing facility. This is also a major concern to cities and towns in the region, particularly where local roads and streets might provide access to the facility.
We ask that any gaming legislation approved by the Committee include strong provisions to identify immediate and long-term infrastructure and local government service-delivery impacts of any casino proposal and provide adequate impact mitigation for the host community and all affected cities and towns in the area. We also ask that any expanded gaming proposal subscribe to “smart growth” principles.
Local Approval
It is also a fundamental requirement that any casino be accepted locally through an informed and transparent process. In particular, we believe that the local governing body must be fully empowered to represent the interests of their community.
We strongly recommend that any gaming legislation include a clear process through which municipal officials and residents can offer comment at public hearings held locally at which a full quorum of any decision-making entity is present.
Oversight and Advisory Committees
Decisions made on gaming will have a fundamental and enduring impact on the host community and neighboring cities and towns. We recommend that any advisory committee include at least one municipal representative. We recommend that there be a separate, perhaps temporary advisory committee, established to provide guidance for siting and mitigation decisions.
Summary
Expanded gaming in Massachusetts would bring major and costly challenges to local government finances, particularly in relation to municipal revenues and service delivery obligations. Please take these challenges into account as you consider the gaming expansion bills that are before you.
Thank you for your long-standing interest in the financial security of cities and towns in Massachusetts. If you have any questions or would like additional information, please contact me or Deputy Legislative Director John Robertson at the MMA office at any time.
Sincerely,
Geoffrey C. Beckwith
Executive Director, MMA
Advocacy Letters to State Leaders MMA letter to Legislature regarding proposals to expand gambling
MMA letter to Legislature regarding proposals to expand gambling
The Honorable Brian S. Dempsey, House Chair
The Honorable Karen E. Spilka, Senate Chair
Committee on Economic Development and Emerging Technologies
State House, Boston
Dear Representative Dempsey, Senator Spilka and Members of the Committee,
On behalf of the cities and towns of the Commonwealth, the Massachusetts Municipal Association would like to offer comment on the several proposals before you for a public hearing today that would expand gaming here in the Bay State.
Expanded gaming is an important issue for cities and towns because of the projected impact on the Lottery that now provides well over $700 million a year to help pay for municipal and school services and reduce reliance on the property tax. City and town officials also have concerns about the impact of major gaming facilities on local roadways and public infrastructure, public safety, and other local government services.
While individual municipal officials have taken positions on expanded gaming, the MMA has traditionally not weighed in on behalf of its members collectively due to the wide variety of strong positions on the issue. Instead, the Association has focused its attention and policies on the issues that we feel must be addressed if the Commonwealth makes the decision to move forward on gaming. This is the focus of our written testimony to your Committee.
MMA representatives met with Executive Branch staff in 2007 prior to release of the Governor’s bill (House 4307) to talk about municipal issues related to expanded gaming, mainly Lottery and impact mitigation concerns, and we generally support provisions in that bill designed to address those issues. We understand that this bill is not before the Committee today, but wish to make note of work done previously to address municipal concerns.
MMA representatives have met with legislators (and continue to schedule meetings) and appreciate the consistent understanding of revenue and cost mitigation issues. MMA member municipal officials continue to meet with advocates from all perspectives on the gaming issue in an ongoing effort to offer the most helpful recommendations that represent a general municipal government position.
Impact on the Lottery
Major studies conducted on the impact of various forms of expanded gaming have shown that a material impact on Lottery revenues can be expected. The 2006 study prepared by Christiansen Capital Advisors LLC for Treasurer Timothy Cahill (also Chairman of the Massachusetts State Lottery Commission) projected that Lottery revenues could fall by almost 4 percent per year in the first two years following the introduction of gaming machines (including slot machines). After the initial decline, revenues would start to grow again, eventually returning to pre-gaming machine levels after five years. While this study was conducted prior to the recession that began in 2007, the underlying analysis remains solid.
Cherry Sheet Lottery revenues have been the only significant source of state assistance for municipal (non-school) purposes since fiscal 1990. Any decrease would have a major negative impact on the ability of cities and towns to pay for public safety and other municipal services and would result in higher reliance on the property tax. Various bills, including the Governor’s 2007 proposal, would set aside a portion of casino/slot machine revenues to cover the loss of Lottery revenues.
The MMA supports strong language in any gaming legislation that would protect Cherry Sheet general government aid (currently $935 million) and restore aid to prior year levels through the use of new gaming revenues. New gaming revenues should be used to help fund a permanent and sustainable municipal aid program, building on the current general municipal aid program, to help pay for police, fire and other municipal services.
Local and Regional Impact Mitigation
Cities and towns that have been named as a possible host for a gaming venue have been concerned about the infrastructure and service delivery costs associated with a major destination resort casino facility or adding gaming at an existing facility. This is also a major concern to cities and towns in the region, particularly where local roads and streets might provide access to the facility.
We ask that any gaming legislation approved by the Committee include strong provisions to identify immediate and long-term infrastructure and local government service-delivery impacts of any casino proposal and provide adequate impact mitigation for the host community and all affected cities and towns in the area. We also ask that any expanded gaming proposal subscribe to “smart growth” principles.
Local Approval
It is also a fundamental requirement that any casino be accepted locally through an informed and transparent process. In particular, we believe that the local governing body must be fully empowered to represent the interests of their community.
We strongly recommend that any gaming legislation include a clear process through which municipal officials and residents can offer comment at public hearings held locally at which a full quorum of any decision-making entity is present.
Oversight and Advisory Committees
Decisions made on gaming will have a fundamental and enduring impact on the host community and neighboring cities and towns. We recommend that any advisory committee include at least one municipal representative. We recommend that there be a separate, perhaps temporary advisory committee, established to provide guidance for siting and mitigation decisions.
Summary
Expanded gaming in Massachusetts would bring major and costly challenges to local government finances, particularly in relation to municipal revenues and service delivery obligations. Please take these challenges into account as you consider the gaming expansion bills that are before you.
Thank you for your long-standing interest in the financial security of cities and towns in Massachusetts. If you have any questions or would like additional information, please contact me or Deputy Legislative Director John Robertson at the MMA office at any time.
Sincerely,
Geoffrey C. Beckwith
Executive Director, MMA
