Political Notebook

Senate hearing on Senjem's racino bill cancelled

Senate Majority Leader Dave Senjem said today he decided against going ahead with a planned hearing in the Senate Education Committee on his racino bill, which would use the gambling money to help repay money owed to K-12 schools.

"We weren't ready. I wasn't sure about the votes," Senjem said.

The Rochester Republican is sponsoring four racino-related bills. The would allow video slot machines at the state's two horseracing tracks — Canterbury Park and Running Aces Harnass Park. Senjem's bills vary on how the money raised from racinos would be used. The bill scheduled to be discussed at today's hearing would have required the bulk of the funding go towards repaying the $2.2 billion borrowed from K-12 schools to help with the state's budget woes. Estimates suggest allowing racinos would generate more than $130 million per year for the state.

But Senjem's racino proposals faces fierce opposition from Minnesota Indian Tribes that have their own casinos. That includes Prairie Island Indian Community, which owns and operates Treasure Island Resort and Casino near Red Wing. They argue that if video slot machines are added to horseracing tracks it will hurt business at tribal casinos and lead to job losses in greater Minnesota. Also opposing the bill are lawmakers concerned about the social costs associated with expanding gambling in the state.

There is still the potential that racinos could end up being part of the proposal to fund a new Minnesota Vikings stadium. But DFL Gov. Mark Dayton has raised concerns that trying to move ahead with racinos could lead to a lengthy legal fight that would delay the state getting the money. He has said of all the gambling proposals that electronics pull tabs appear to have the most support in the legisalture.

Day leaves Racino Now as Senjem carries on racino push

Former GOP Sen. Dick Day announced today he is leaving his post as president of Racino Now in order to form his own lobbying group called Day and Associates.

In a written statement, Day said he is looking to take on new challenges.

"I have been approached by many people asking for my assistance with their issues over at the Capitol. While I enjoyed working with Racino Now and accomplished the goal of raising public awareness for the issue, I feel that it's time to take on new issues and new challenges in St. Paul," Day said.

Day, of Owatonna, served 19 years in the Minnesota Senate. For 10 of those years, he held the post of minority leader. He resigned his seat in January 2010 to become the president of Racino Now. Efforts to get lawmakers to pass a racino plan failed to gain traction at the Capitol over the past two sessions.

Rochester GOP Sen. Dave Senjem is one of the biggest champions of racinos. He sponsored a bill that would allow slot machines at the state's two horseracing tracks — Canterbury Park and Running Aces Harness Park. In a recent interview, Senjem said racino supporters are trying a new approach to win support. They are suggesting that some of the $125 million that would be raised each year by racinos could go towards helping pay back the K-12 school shift.

Senjem said that idea has a "fair amount of support" and while there are probably not enough votes to pass racino in the legislature right now, he believes linking education funding to racinos could help change that. He said he also believes racino is the only way that a deal for a new Minnesota Vikings stadium will get done.

But opposition to racinos remains from lawmakers on both the right and the left. Rep. Mike Benson, R-Rochester, is a staunch opponent of proposals to expand gambling — even if the money would go to schools.

He asked, "What are we saying? We are going to gamble with the future of our children?"

Senjem's racino bill will NOT get a hearing tonight

Update: The chair of the Senate Committee on State Government Innovation and Veterans Steve Parry just announced that "due to a scheduling conflict" they are canceling the racino hearing tonight. That raises some pretty interesting question. The House committee slated to hear the racino bill has already rescheduled it twice. Does this mean racino does not have the votes?

The word is from some Capitol insiders that Rochester GOP Sen's Dave Senjem's racino bill is short the votes needed to pass tonight. Senjem could always try to get the racino proposal amended on the floor — whether or not the bill clears committee.

His plan would allow video slot machines at two horseracing tracks in the state. He estimates it would generate $125 million per year. That money would go into a special fund to encourage economic growth, creating an estimated 3,500 jobs.

The proposal faces fierce opposition from tribal gaming supporters and anti-gambling groups. Backers of the plan include horse breeders arguing its needed to help save their industry along with Canterbury Park and Running Aces Harness Park.

 

Senjem to introduce racino bill next week

Rochester GOP Sen. Dave Senjem is taking the lead in pushing a bill to allow video slot machines at two horse-racing tracks in the state.

I just got a press release about a news conference slated for 10 a.m. Monday at the state Capitol announcing Senjem will be the chief author of the racino bill. Also joining him will be DFL Sen. Dan Sparks of Austin, who sponsored the bill last year. Rep. Bob Gunther, R-Fairmont, will be the chief author in the house. The measure could raise $250 million per year.

Previous racino attempts have fizzled at the Capitol. But with the state facing a $5 billion budget deficit, this might be the year lawmakers and the governor are willing to consider gambling as part of the solution. A big question is how those racino dollars would be used. One option would be for the money to help go towards building a new Minnesota Vikings Stadium. DFL Gov. Mark Dayton has said he would not want to see gambling money diverted to a stadium. Rather, he would like to see any such revenues go towards education.

Joining the lawmakers for the press conference will be representatives from Minnesota's equine industry, who are strong supporters of the bill. But expect a tough fight on the measure — especially from Native American tribes who argue this expands gambling in the state and will divert business from their casinos.