ASSEMBLY APPROPRIATIONS COMMITTEE

 

STATEMENT TO

 

[Second Reprint]

SENATE, No. 1348

 

STATE OF NEW JERSEY

 

DATED: DECEMBER 16, 1996

 

      The Assembly Appropriations Committee reports favorably Senate Bill No. 1348 (2R).

      Senate Bill No. 1348 (2R) provides funding for the remainder of fiscal year 1997 to the New Jersey Racing Commission from the Casino Simulcasting Special Fund and for fiscal year 1998 and thereafter from sums resulting from unclaimed parimutuel tickets that are currently deposited into the General Fund.

      The bill appropriates to the commission for its expenses during fiscal year 1997 up to one-half of a portion of Casino Simulcasting Special Fund monies accumulated in calendar year 1996 that remain after certain statutory payments are made. Under current law, money deposited in the Casino Simulcasting Special Fund is allocated in priority order, after certain specified statutory amounts are paid to casinos that conduct casino simulcasting, to: racetracks negatively affected by casino simulcasting; financially distressed racetracks; horsemen's organizations for projects which benefit the racing industry; and all racetracks in this State on an equal basis.

      For fiscal year 1998 and thereafter, the bill requires the sums resulting from unclaimed parimutuel tickets that are now deposited into the General Fund to be appropriated annually to the commission for its operating expenses.

      The appropriation for the remainder of fiscal year 1997 shall be a one-time appropriation necessitated by the emergent nature of the current financial situation of the commission. Although the appropriation to the commission for fiscal year 1997 is “for up to one-half” of a portion of the money accumulated in the Casino Simulcasting Special Fund in calendar 1996, it was stated that the commission will expend only such sums as are essential for its operations until the end of the fiscal year, which sums may actually be less than one-half of the amount specified.

      This bill is identical to A-2143 (1R) as amended and reported by this committee.


FISCAL IMPACT:

      The bill appropriates to the Department of Law and Public Safety for the New Jersey Racing Commission for fiscal year 1997 up to one-half of the monies that will accumulate in calendar year 1996 in a certain portion of the Casino Simulcasting Special Fund. According to the commission, approximately $800,000 is required by the commission for the remainder of the fiscal year to avoid employee lay-offs and service reductions; approximately $2 million will accumulate during calendar year 1996 in the portion of the Casino Simulcasting Special Fund that is affected by this bill. The appropriation is diverted, with the approval of the racing industry, from the portion of the fund that provides payments to racetracks negatively affected by casino simulcasting; financially distressed racetracks; horsemen's organizations for projects which benefit the racing industry; and all racetracks in this State on an equal basis.

      For fiscal year 1998 and thereafter, the bill requires the annual appropriation to the commission of the amount of certain sums resulting from unclaimed parimutuel tickets currently deposited into the General Fund. The portion of unclaimed parimutuel tickets affected by this bill accumulates approximately $1 million annually for General Fund.

      The New Jersey Racing Commission received through the annual appropriations act $2.7 million for FY 1996 and $1.3 million for FY 1997. According to the commission, 27 investigative and licensing employees have been recently laid off.