June 24, 2005

COMMUNITIES TO SEE SLOT REVENUE INCREASE

By Ray Hackett, Norwich Bulletin

NORWICH -- New London County communities will see an increase in casino slot revenue this year and next year.

The state House of Representatives adopted an implementing bill Thursday night containing language that would increase revenues from the casino slot fund for affected communities, and give a bigger share of the overall increase in revenues to every community in fiscal year 2007 -- with an extra increase for the 21 towns in New London County.

"It's a great day for New London County," said State Rep. Melissa Olson, D-Norwich. "But it's only good for fiscal year 2007, so we still have a fight next year to continue it."

Under the proposal, host communities -- Norwich, Ledyard, Montville, Preston and North Stonington -- will receive the full amount of impacted aid, $750,000 a year. That aid is now pro-rated, meaning those communities do not receive the full amount. The new language, however, guarantees the full amount will be paid beginning in fiscal year 2006, which begins on July 1.

Additionally, the language sets aside one-third of the annual slot-revenue increase to the state to be distributed to all cites and towns beginning in July 2006, with one-third of that amount earmarked for southeastern Connecticut communities.

"It's a huge step forward to achieve equity for eastern Connecticut," said State Rep. Tom Reynolds, D-Ledyard. "The hard part was putting it into the statute. Now that we've done that, I think it gets easier to continue to make it permanent."

The states receives 25 percent of revenues generated from slot machines at the region's two Indian-run casinos, Foxwoods and Mohegan Sun, estimated at $400 million in the next fiscal year. Of that, $85 million is redistributed to Connecticut cities and towns. It was not clear Thursday night exactly how much additional aid communities will receive.

"It will be easier, I think, to make this permanent," said State Rep. Kevin Ryan, D-Montville, of the changes. "It was a lot of work, but I think we can continue this to make it happen beyond 2007."

Eastern Connecticut lawmakers introduced legislation earlier this year to increase the distribution of slot revenues, but that proposal appeared to be dead when the General Assembly Appropriations Committee adopted a proposed budget that did not include an increase in slot revenues. The language change in Thursday's bill accomplishes what lawmakers had hoped to achieve, but only for the current two-year budget. Lawmakers will need to adopt additional legislation to ensure continued increases beyond fiscal year 2007.