ALTOONA, Iowa - Feb. 15, 2011 - Prairie Meadows Race Track and Casino officials recognized 205 community projects at a luncheon on Tuesday and warned that the grants they hand out every year to may soon end.

The casino provided $3.9 million in community betterment grants in 2010. But officials told the nonprofit groups Tuesday that next year they might not get the grants.

A new tax increase for casinos is part of Gov. Terry Branstad's budget plan. The tax rate for casinos would increase from 22 to 24 percent to 35 percent.

Branstad said the tax revenue would be used for a reduction in corporate taxes.

"It looks to us the chartables would be gone -- none, if we see that big of a tax increase," said Prairie Meadows CEO Gary Palmer.

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