FISCAL NOTE ON GAMBLING MEASURE RISES

Members of the Joint Committee on Legislative Research voted Monday to raise the fiscal note on a proposed constitutional amendment legalizing slot machines and other games of chance on riverboats.

Last week the committee determined the state would likely gain at least $13 million in revenues if the amendment was approved by voters.

But, after learning some data had been left out, committee chairman Sen. Harry Wiggins, D-Kansas City, called for a conference phone call meeting Monday morning that raised the potential revenue to $30 million.

Monday was the legal deadline for the committee to finish its work.

When committee staff prepared its original fiscal note recommendation, it reviewed information provided by the Missouri Gaming Commission, the Office of Administration, and reports from gambling boats in other states.

But the information provided by the gaming commission only included projections for what would be generated from the four gambling boats licensed and operating in the state now. It did not consider other boats that would be licensed, if the amendment passed.

"We know if it passes, there certainly will be other boats, so then the basic difference is we had to factor in other boats," said Rep. Larry Thomason, D-Kennett, vice chairman of the committee.

He said the new figure is conservative, but one more accurate than the first figure.

There was also extensive discussion about what the impact would be on local governments, and the committee left in its fiscal summary a statement that local government impact is unknown.

Thomason said there were some who argued gambling will lead to more crime and the need for additional police, while others argued that would not happen and that local revenues generated by gambling would offset any additional costs.

"We know there will be costs and there will be income to local governments," said Thomason. "We just don't know for sure which is greater."

State revenues will be earmarked for education, according to the Missouri Constitution.

Thomason felt revising the fiscal note was the right thing to do. He said the committee's charge was to provide as accurate a cost statement as possible, within 35 words.