Veteran's Abandoned

States desperate and addicted to gambling revenues seek any source to fund sorely needed programs.

In this case, the federal government has abandoned Veteran's who have served their country honorably and in many cases, made incredible sacrifices.

As a nation, we have an obligation that Washington has ignored.

Casinos fight Nixon proposal to jack up admission
BY VIRGINIA YOUNG

JEFFERSON CITY • The gambling industry will fight Gov. Jay Nixon's proposal to raise casino entrance fees by $1 per patron to help finance the state's veterans homes.

Casino lobbyist Mike Winter told the House Veterans Committee on Tuesday that the proposal amounts to "a bottom-line hit of $53 million for our companies" each year and could prompt cuts in marketing, capital projects and staffing at the state's 12 casinos.

Legislators said they're open to compromise, but they made clear they're looking for a dedicated source of money to operate the state's seven nursing homes for veterans and possibly build a new home to accommodate a mounting waiting list.

"Our veterans are out of money in 2013," said Rep. Charlie Davis, R-Webb City. "If something doesn't happen, where are they going to go?"

The Missouri Veterans Commission's $80 million budget comes from several sources: 46 percent from federal money, 26 percent from charges paid by residents of the homes, 23 percent by state general revenue and 5 percent from special accounts such as a trust fund that is used for cemetery expenses.

Now, because of the state's budget problems, the trust fund also will be tapped to help pay operating expenses at the veterans homes, which include one in Bellefontaine Neighbors in St. Louis County.

But the trust fund was designed to cover repair bills when, for example, a boiler breaks at a home, as well as the state's share of construction costs for any new homes. The fund also finances the state's six veterans cemeteries and programs that help veterans sign up for federal benefits.

While the trust fund stands at $19 million, it will run dry by June 2013 if it is used at the projected rate, Larry Kay, the commission's executive director, told the House committee on Tuesday.

Kay said the veterans commission needs a funding source that provides at least $35 million a year "just to stay even."

Nixon's budget proposal, which he released last week, would generate $50 million a year for veterans through a $1 fee increase for every gambler who goes through casino turnstiles.

The current entrance fee is $2, with half going to the state and half to the home-dock city or county. Last year, the veterans trust fund got $6.5 million under a law that divvies up the state's share. Winter, who lobbies for the Missouri Gaming Association, noted that casinos also pay a tax equaling 21 percent of their adjusted gross revenue. Combining the tax and entrance fee, Missouri's effective tax rate is about 27 percent, which he portrayed as high compared with states such as Nevada, which he said charges 6.75 percent.

But the Missouri Gaming Commission's annual report showed Missouri is competitive with most nearby states. At 27.18 percent, Missouri's effective tax rate is lower than Illinois (33.92 percent) and Indiana (31.31 percent), but higher than Kansas (25.08 percent) and Iowa (22.33 percent), according to the report.

Legislators pointed out that casinos could pass on any fee increase to their patrons. But Winter said they had no plans to do so. They absorb the current $2 fee.

The gambling industry got some backing from the Missouri Chamber of Commerce & Industry, which said veterans homes should not be borne by "a single sector."

Dewey Riehn, who represents the VFW, said a higher admission wouldn't break casinos, which pulled in $1.8 billion last year.

"If they think they can convince me that a $1 entry fee will cause them to close boats, that's ridiculous," Riehn said.



Read more: http://www.stltoday.com/news/state-and-regional/missouri/casinos-fight-nixon-proposal-to-jack-up-admission/article_c2065af9-13ed-5a40-b9af-db4ca2606778.html#ixzz1kW78KKv1