United Methodist oppose casino proposal

Saturday, October 24, 2009

By PATTY RICE GROTH
Inquirer Reporter
prgroth@galioninquirer.com

Issue 3 on the Nov. 3 general election ballot asks Ohio voters to decide whether the current proposal for gambling in Ohio is right for Ohio. There is lots of debate on both sides of the issue, pro and con. The United Methodist Church has been diligent in its opposition to gambling in Ohio and has published and circulated several articles outlining why it opposes gambling in Ohio.

Like many conscientious voters in Ohio, the East Ohio UMC Conference body does not understand why the issue is on the ballot as a constitutional amendment. This seems to be how Ohio does things.

The constitutional amendment specifies not just four Ohio cities but also specifies which parcels of privately-owned real property in Cleveland, Columbus, Cincinnati and Toledo. Research of county land records indicates entities such as Mills Properties, Broadway Partners, Jaeger Commerce Park Ltd. Partnership and Scranton Averell Inc. own all or most of the specified parcels.

The amendment specifies percentages of revenue from the casinos going to various entities in the state government. It generously says no casino operator may own more than two of the four casinos.

UMC documents also point to increased expenses — to create a casino commission, increased law enforcement needs, and administering receipt and distribution of any taxes paid by the casinos.

The state tax department alone estimates it will cost $400,000 to gear up to handle the money, costing $250,000 per year thereafter, according to an analysis prepared by the state tax department. The same report says the new commission would call for 158 additional full-time employees to enforce criminal, regulatory and financial issues. Some of that staff would be located at each of the casinos.

Using the state’s wage specifications, the taxation department believes additional staff will cost the state $4,832,514 in start-up costs with ongoing expenses estimated at $14,146,942. Casino commission employees will require training which costs almost $2 million, plus another $1.7 million for training state troopers to enforce the law.

The casino commission’s executive director would report directly to the governor, according the a chart included in the tax department’s analysis. The director’s annual salary including fringe benefits would be $159,698. The director’s administrative assistant would cost the state $73,630. The lowest paid employee of the commission in the start-up year will make about $21.51 an hour. Commission members will each earn about $27,027, and their secretary will earn about $98,209 in salary and benefits.

Once the casinos are open, the commission staff will expand to include a deputy director, another assistant, and the enforcement staff mentioned above.

UMC also looks at the potential social impact of gambling, including casino gambling. Documents cite statistics such as 60 percent of casino revenue comes from gamblers making less than $25,000 per year. Bankruptcy rates in states with gambling are higher in a county which is home to a casino.

White collar crime, child neglect and divorce are also social issues which concern the UMC. Crime rates — property crime, violent crime — and suicide rates are increased in a county which is home to a casino.

According to Dr. Earl Grinois, distinguished professor of economics at Baylor University, the amendment language specifies which casino activities are taxable, thereby opening the door for new activities to be brought in without being taxed.

Grinois states Aurora, Ill., experienced only a 3 percent increase in revenue from riverboat casinos. He also points out Issue 3 amends the state’s constitution to support the owners of four casino operators. He calls it creating a monopoly.

The text of the full amendment is available online at www.sos.state.oh.us. To find the complete text click on “Statewide Issues Information 2009” box on the home page.