Ariz. horse racing is safe:
Funding for horse racing is on track despite significant budget cuts for regulators
State Department of Gaming officials, who recently warned that budget cuts might shut down Arizona’s parimutuel horse racing by early next year, now say a nearly 50 percent funding reduction will not shut down horse racing.
State Department of Gaming officials, who recently warned that budget cuts might shut down Arizona’s parimutuel horse racing by early next year, now say the sport of kings is not threatened after all.
In a written statement, Greg Stiles, department enforcement officer, said a nearly 50 percent funding reduction will not shut down horse racing.
Citing earlier employee layoffs, other cost savings and a $1.6 million cash reserve, he said the regulatory agency is expected to end the fiscal year with a surplus.
“The (Racing) Division is not running out of money,” Stiles wrote. “Through previous fiscally responsible efforts, the division ended last fiscal year with a cash reserve.”
As of two weeks ago, the agency claimed it was in danger of running out of money in spite of the layoffs and other cost savings. After The Republic published a story detailing those concerns, the agency backed away from its claims and issued news release discounting the possibility of ending the year in the red.
The Republic then asked Gaming Department officials for budget documents and internal reports explaining how the agency’s fortunes had gone from bust to flush so rapidly. So far, they have provided none.
In May, division Director Rudy Casillas told the Arizona Racing Commission that state lawmakers had cut his agency’s funding in half, adding, “There is no way from my estimation that we can get through the rest of the fiscal year.”
Under state law, Racing Division employees monitor thoroughbreds, jockeys and wagering to ensure the sport’s integrity and safety. The division is not supported by Arizona taxpayers or the state’s general fund, but gets its financing from a percentage of betting proceeds known as the regulatory wagering assessment (RWA). Half of the money comes from track owners, and half from horse owners.
In fiscal 2016, the Racing Division budget totaled $2.9 million. This year, lawmakers cut the assessment percentage by a third and decided a $250,000 Breeders Cup award must be paid from RWA proceeds, rather than the General Fund.
The upshot: Available money for racing regulation dropped to about $1.5 million.
Casillas previously indicated the division was asking the Legislature and Governor’s Office for an “emergency appropriation.”
Stiles’ recent statement, however, says no emergency funding is necessary and the Racing Division will have a $788,562 surplus when the fiscal year ends.
Aiden Fleming, the Gaming Department’s government and tribal relations manager, described the extra money as “rollover cash.” He said the Legislature reduced the agency’s appropriation and spending limit because the Racing Division had accrued reserves over prior years.
The Racing Division oversees parimutuel wagering at Turf Paradise in Phoenix and the Rillito Park Racetrack in Tucson, as well as horse racing at county fairs. Staffing, authorized at 44 full-time workers, has been reduced by nearly 80 percent, according to an agency spokesman.
Today, just nine employees are responsible for licensing participants, drug-testing horses and jockeys, monitoring safety and ensuring the integrity of betting action.
The Phoenix horse racing season runs from October through early May.