Mayors give mixed odds on casinos
Governor Deval Patrick is getting a mixed response from local mayors as he looks across the state to help sell his casino proposal to the Legislature.
Lieutenant Governor Tim Murray last week met with about 20 mayors to seek their assistance in advancing Patrick's proposal to license three resort-style casinos. The plan, released last September, has stalled on Beacon Hill.
In interviews last week, a number of area mayors said they support or are open to the governor's casino plan, citing the financial help it could bring to cash-starved cities and towns.
"I think it's critical for us to have a revenue stream that is going to grow over the course of the next few years. Certainly the lottery is not, so I don't see any alternative," said Mayor Thomas G. Ambrosino of Revere, who attended the meeting with Murray.
But in neighboring Lynn, Mayor Edward J. Clancy Jr. opposes the governor's plan, arguing that any expansion of gambling in the state should start with allowing slot machines at the racetracks. Wonderland Greyhound Park is located in Revere, and Suffolk Downs is just over the line in East Boston.
The racetracks "have dealt with all the issues surrounding gambling for many, many years," Clancy said.
Other mayors and local officials worry that the governor's proposed use of casino income to cover part of a projected drop in lottery revenues used for local aid to cities and towns puts them at risk of losing state funds.
"I prefer not to rely on casino revenue," said Salisbury finance director Andrew Gould, emphasizing that he was speaking for himself, and not for the town.
Patrick has estimated the three casinos would generate 20,000 permanent jobs and $400 million in annual state revenues. He also has estimated they would bring up to $900 million in licensing fees.
The governor's fiscal 2009 budget plan includes $124 million in licensing fee revenue from the three casinos. Patrick proposes $88 million of the revenue go to transportation and other local infrastructure projects, and $88 million to local property tax relief.
In a telephone interview, Murray said the outreach to mayors on the casino plan is part of an ongoing effort by the state to work closely with municipal leaders. He noted their joint push to adopt the governor's Municipal Partnership Act, which provides cities and towns with new tools to save money and raise new revenues, including savings through participation in state pension and healthcare systems. Key parts of that bill remain stalled.
"Obviously, the piece of the casino proposal that is of real interest to mayors and other municipal officials is that it brings additional money back to cities and towns, and to homeowners in terms of property taxes," Murray said.
State Representative John Keenan has no objection to Patrick's reaching out to mayors on the casino plan. The Salem Democrat is neutral on the proposal. "It still remains to be seen what the actual revenues are and what the actual jobs are," he said. "I think the governor is doing what he has to do. He's reaching out to municipal partners. He's obviously reaching out to labor. He's trying to build a coalition. . . . But at the end of the day, it's still going to come down to what we believe the numbers are."
Like Ambrosino, Mayor Robert J. Dolan of Melrose backs Patrick's plan, calling it a "reasonable" way to infuse new revenues to cities and towns at a time when other alternatives are lacking.
Mayor Carolyn Kirk of Gloucester supports the plan because of a concern that without it, an Indian casino could open without the state receiving revenues. But she said it ranks third on her list of preferences for generating new local revenue, behind the Municipal Partnership Act and a Massachusetts Municipal Association revenue-sharing plan.
"The bottom line is we need our legislators to step up and recognize the revenue need," Kirk said.
Mayor Thatcher W. Kezer III of Amesbury still is considering the governor's casino plan but is "looking very favorably" on it. "They are taking a comprehensive approach to the whole issue," he said, noting that the plan is part of a "broader economic development package."
Mayor James J. Fiorentini of Haverhill is undecided, but leaning toward supporting the governor's plan. "I'm opposed to gambling," said the mayor, but he added that at last week's meeting, state officials made a "persuasive case that people are going to gamble" and that the governor's plan provides a way to generate revenues from gaming.
Mayor Michael J. Bonfanti of Peabody is still weighing the issue. But like Fiorentini, he felt the state made a "compelling case."
"I'm very appreciative that they are trying to find some revenue sources for the communities, some tools. I look at casino gambling as one of those," he said.
Mayor John Moak of Newburyport said that before supporting a casino plan, he wants to be sure that "all communities get a fair share" of any revenues generated.
Mayor Carlo DeMaria of Everett would support the plan if there are adequate funds to address the impacts to affected communities, and the state provides school programs dealing with the problem of compulsive gambling. Both Wonderland and Suffolk Downs have expressed interest in hosting a casino site.
Several mayors said they did not object to Patrick's inclusion of casino revenues in the budget. Kezer said it was reasonable given the timeline for licensing casinos. Dolan said that Patrick is at a point where "he had to force the issue."
Lynn's Clancy remains one of the doubters. The casino plan, he said, is sending out "false hopes and false expectations about money that doesn't exist." 