Harrison County May Limit Sharing Of Gambling Funds

Since the Caesars riverboat casino opened nearly five years ago, Harrison County has given $17 million out of its gambling tax-revenue to cash-strapped neighboring communities.


Casino gambling was intended to benefit the entire region —not just the counties that landed the boats — and Harrison promised to share the wealth when it made its pitch for a casino to state regulators.


But now the county is considering drawing the purse strings a little tighter. That's because, in recent years, the state has limited the amount of gambling revenue that Harrison and the other six riverboat counties receive.


"Our joy is not what it used to be," Harrison County Councilwoman Rhonda Rhoads said. "We're going to have to start taking some money and keeping it for ourselves."


Last year the General Assembly capped the amount that the riverboat counties could receive — in Harrison's case about $24 million, a figure that the county had expected to grow much larger once Caesars' operation reached its potential.


Then earlier this year, the legislature decided to take $33 million in wagering taxes paid by the 10 Indiana casinos and distribute it to the 85 counties without riverboats. That rankled many of the riverboat counties, since they already were sharing revenue with their neighbors.


Harrison's discussions about revenue sharing are still preliminary, and officials caution that they aren't sure what — if any — changes ultimately will be approved.


The Indiana Gaming Commission is expected to renew Caesars' five-year operating license this fall, and Harrison County wants to time any revised revenue-sharing plan to take effect next year, at roughly the start of the new licensing period, said Gary Davis, the president of the Harrison County Council.


"There will be some changes, but what they'll be, we can't say now," he said in an interview. "The state wants money, (and) they seem to want more of what we're getting."


As things stand now, Harrison County shares 18 percent of the roughly $24 million it gets annually in Caesars tax revenue with three neighboring counties and some cities and towns.


Crawford, one of the state's poorest counties, receives 8 percent — a whopping $6.9 million since mid-1999. Floyd County and the town of Georgetown each receive 1 percent — or $871,548.


The city of New Albany receives 3 percent, a total of $2.6 million, and Washington County's 2 percent share has totaled $1.75 million. Harrison also provides a total of 3 percent to its 10 small towns, which has meant $261,464 for each, a total of $2.6 million.


After the Harrison County town councils complained that they weren't getting an adequate share, the commissioners in mid-2000 began giving them money from the riverboat revenue that had been set aside for infrastructure improvements. That money, distributed on a per capita basis, has totaled $1.37 million over a three-year period.


The remaining portion of the county's roughly $87 million in gambling revenue has gone for paving roads, reducing property taxes and hiring 10 additional police officers, among other big-ticket expenditures.


So far it's the money going to the town of Georgetown and to Crawford County that has prompted the loudest complaints in Harrison.


No one seems to even remember why Georgetown — in western Floyd County — was chosen from among so many other nearby cities and towns to get such a significant share of the money.


Crawford County, meanwhile, is now also receiving revenue from Switzerland County, which has given it $434,000 so far this year, according to the Crawford County auditor's office. Switzerland won out over Crawford for the Belterra casino, the last of the five Ohio River boats to be licensed.


And Crawford also is in line to received a portion of the $33 million the state is giving counties without riverboats.


Several Harrison County officials have suggested that they reduce the money being shared with Crawford by the amount the state gives Crawford from the $33 million, Davis and Rhoads said.


That way, Crawford would continue to receive the same amount of money, but Harrison wouldn't foot as big a share of the bill, they said.


"There's certainly sentiment that we should deduct from what we're giving from what (Crawford is) getting from the state," Rhoads said. Otherwise, "it's double dipping."


As for Georgetown, Rhoads said she's not sure why the community was included in the first place, and she favors eliminating all future revenue sharing for the town.


Davis agreed and said he'd consider shifting Georgetown's share to Floyd County, which would then receive 2 percent.


Most of Caesars' customers use roads in Floyd County to reach the riverboat — through downtown New Albany and down Ind. 111, where the casino is located. Floyd County has been dramatically affected by the additional traffic, Davis said.


Crawford County Commissioner Curtis "Al" Tucker bristled when told that Harrison County officials have discussed reducing the amount of revenue it shares with his county.


Crawford was shut out when riverboat licenses were awarded, Tucker said, and the winning communities were wise to share with the county because casino gambling was intended to benefit the entire region.


"I don't know how we'd operate without the money," Tucker said, adding that the county has spent several hundred thousand dollars to improve roads and reduce its debt for renovating the county's five elementary schools.


But Tucker conceded that he's not surprised that Harrison officials are considering cutting Crawford's share, given the recent action by the state.


"I figured it'd come up sooner or later, (but) I don't think they ought to take it out on us," he said.


Georgetown clerk-treasurer Linda K. Sanders said the town has saved its gambling revenue to purchase property and build a new town hall. The town council will have to decide whether to proceed with the plan, Sanders said.


Harrison County Commissioner James Goldman said he and other county officials couldn't predict how quickly the state would begin tinkering with their riverboat money. They particularly are galled at how the legislature — looking to shore up the state budget — raided gambling tax funds and bowed to pressure from counties without riverboats.


Many communities don't share in the money flowing to Indianapolis from the Brickyard 500 or the Indianapolis 500, Goldman said, "but we don't run to Indianapolis and say, `Give us the Brickyard money.'"


And Caesars' $400 million complex wasn't even finished before the legislature capped the annual amounts that could go to the state's seven riverboat counties. Harrison was expected to receive up to $30 million annually once the casino reached its potential, but the county's share will now be at least $6 million less, Goldman said.


Given the state's willingness to dip into casino revenues, Harrison needs to put more of its own money in reserve, Rhoads said. That's what she intends to suggest as county officials begin their discussion in the coming months.