Feb 16, 2006 - 02:05:55 CST
Why postpone the inevitable?The North Dakota Racing Commission, and therefore the state of North Dakota, should get out of the business of subsidizing horse racing tracks as soon as the next legislative session.
The Legislature shouldn’t mind turning the money spigot to the off position. The state’s bank account has never realized a positive cash flow from taxing wagers as compared to the three kinds of generous subsidies that have been handed out — not making money at the old tax rate of 2 percent, and certainly not at the new, improved rate of 1/16 of 1 percent.
The chairman of the racing commission says that the promotion fund, which helps fund operations at the Fargo and Belcourt tracks, will have enough in it for not even three more years, at the annual rate of $415,000.
That’s not to mention what the racing industry expects from the breeders fund and the purse fund paid out of the state’s kitty. Those funds amounted to a tidy little request of $810,500 in 2005.
The annual beneficences pile onto the $2.8 million the state spent in 2002-03 to help build the horse park in Fargo. The $3.6 million project — phase one only — came in at $1.94 million over estimate, but that’s water under the bridge.
The foundation that runs the Fargo track says brighter days are ahead, even if state funds dry up. Alcohol sales and other concessions revenue are up. And if the money can be scraped together to build the permanent grandstand, then there can be a greater variety of events put on there than horse racing only, maybe even rodeos.
The foundation and its partners, including North Dakota State University, have everyone’s good wishes. If the sport has a broad enough base of support, then it probably can achieve self-sufficiency — the horse “can do, can do,” as the guy sings in “Guys and Dolls.”
But it’s time to see if indeed it can do.
The Fargo track can try more promotions like the three-day harness racing season and keep the money. After all, when the state got revenue in the whopping amount of $126 from a $23,890 betting handle in that event, the state’s treasury won’t miss the cash very much.
Of course, if the state does stop subsidizing racing, the future of the Racing Commission comes into question. Perhaps its real role is supervising the racing business to make sure it keeps its nose clean.
Let the racing business win, place or show on the strength of the support of its enthusiasts, not on the state dole.
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