A bill, allowing on-shore casinos, passed the Mississippi Senate and House of Representatives but stalled on its way to governor.
Senate Appropriations Committee Chairman Jack Gordon, D-Okalona, refused to send the onshore gaming bill to the governor Tuesday until the issue of funding is settled.
“I halted the passage of that bill because we would have had an abandonment of the tidelands fund,” said Gordon. “When those casinos move inland, there would be no more funding for the piers and artificial reefs on the Mississippi Gulf Coast.”
Though the funds from the gaming establishments have provided funding for coastal endeavors and construction, in recent years the state has dipped into the special account, to resuscitate its suffering general fund. Almost $2 million was taken out of the tidelands fund this year to help with the state budget crisis.
Gordon said that’s not the reason he’s doing this. “This bill would ensure that casinos will not get a free ride after moving inland; I support the onshore casinos bill.”
Rep. Herb Frierson, R-Poplarville, remains wary of the government’s focus on this fund.
“We use this money for piers, boat ramps, marinas. . . . 60 percent goes to that, with the other 40 percent for Deer Island, re-establishing oyster beds and a lot of general marine biology research,” Frierson said.
The Gulf Research Lab in Ocean Springs also makes use of funding from the tidelands lease fund, Frierson said.
“More importantly, those monies are matched by the federal government. When that money is transferred to the state’s general fund, we lose that match.”
Gordon said he understands that provisions need to be made in order to fully fund coastal construction costs, especially considering the onslaught of damage from Katrina.
The Senate passed its version on Wednesday that would change the lease terms for casinos on state-owned coastline. The bill, House Bill 44, requires gambling establishments to pay 1 percent of their gross gaming revenues to the tidelands fund, increasing it from the current $7.4 million to almost $9 million annually.
The House took a different approach, tying the leases to annual increases in the consumer price index.
“I like the House’s approach. This will bring in two million more than last year, a higher increase than the Senate’s suggested plan, and it would increase by inflation,” Frierson said.