Shakopee, MN - June 22, 2011 - There were more
questions than answers for the six members of
the Minnesota Racing Commission who met Monday
night about a possible state government
shutdown.
Although Canterbury Park has pre-paid for the state veterinarians and stewards, the state Office of Management and Budget says racing can't continue during a shutdown because state employees wouldn't be around to cut the paychecks for racing officials.
"That's the rub?" asked Commissioner James Lane.
"That's correct," responded the commission's executive director Richard Krueger.
But attorneys for the horsing associations -- including Cort Holten, who helped craft state racing legislation -- told commissioners that racing was allowed to continue during a past shutdown. They said the courts excluded self-funded agencies from the discussion of what was or wasn't a core service in 2001 and 2005.
This hasn't been the argument coming from the state budget office or Gov. Mark Dayton, however.
Racing commissioners weren't sure, and without legal counsel present from the Minnesota Attorney General's Office, they didn't want to make strong legal arguments in a resolution they passed outlining the damaging effects a shutdown would have to the horse industry and local economy.
"We're in unchartered waters," said Commission Chair Jesse Overton.
He suggested the resolution demonstrate the drastic effect of a shutdown without telling decision-makers what to do.
Commissioner Jackie Duncanson was more bold. She asked if the racetracks could just pay the racing officials directly and be reimbursed later. Her question went unanswered.
The Commission eventually adopted a revised version of a resolution suggested by the horsing associations (attached below). The associations said a more softly positioned resolution put forth from commission staff would have done more harm than help.
The state Attorney general and the governor are expected to make separate proposals to a judge Thursday on what state services should or shouldn't continue in the event of a state government shut-down, which is looking ever more likely.
Canterbury Park hopes the attorney general takes a different stance from the governor, and argues that racing and other self-funded activities with state oversight -- such as the state lottery -- fall into a third category since they're not reliant on the general fund, said spokesman Jeff Maday.
If the horse tracks are required to close, Minnesota's horse racing reputation could forever be harmed for a state that already struggles to attract horsemen because of its low purses.
"We may have owners that never come back here again," said attorney John Boyle, on behalf of multiple horse racing associations.
With the Fourth of July weekend approaching, horse trainers are already looking at where to take their fleet. If they do, they can't afford to return this season due to the high cost of transporting animals. (One trainer from Texas said it costs him $25,000 one-way for his 40 horses).
Read more in the Shakopee Valley News