123rd MAINE LEGISLATURE
LD 701 LR 666(02)
An Act To Authorize the Operation of Slot Machines on Indian Island in Old Town
Fiscal Note for Bill as Amended by Committee Amendment "     "
Committee: Legal and Veterans Affairs
Fiscal Note Required: Yes
             
Fiscal Note
2007-08 2008-09 Projections 2009-10 Projections 2010-11
Net Cost (Savings)
General Fund ($447,991) ($2,049,078) ($2,007,320) ($2,003,742)
Appropriations/Allocations
General Fund $317,603 $192,177 $195,651 $199,229
Other Special Revenue Funds $1,248,660 $5,403,440 $5,308,484 $5,308,484
Revenue
General Fund $765,594 $2,241,255 $2,202,971 $2,202,971
Other Special Revenue Funds $1,248,660 $5,403,440 $5,308,484 $5,308,484
Correctional and Judicial Impact Statements
Establishes new Class C crimes; increases correctional and judicial costs.
Sentences for more than nine months imposed for a Class C crime must be served in a state correctional facility.  The average cost to the state for each sentence is $70,308 based on an average length of stay of 1 year, 10 months.  Sentences of nine months or less imposed for a Class C crime must be served in a county jail.  The average cost to a county for each sentence is $19,947 based on an average length of stay of 6 months and 2 days.
Fiscal Detail and Notes
Presented below is a detailed estimate of revenues and subsequent distribution that may be generated assuming the successful licensure to operate 400 slot machines by a federally recognized Indian tribe that is licensed to conduct high-stakes beano as of January 1, 2007. This estimate assumes no significant effect on revenue generated by the licensed racino facility in Bangor. If there is an appreciable shift of revenue, there will be a shift in the amounts of dedicated revenue distributed from that facility.
Summary of Slot Machine Revenue 2007-08 2008-09 2009-10 2010-11
Total Slot Machine Revenue  $39,640,000 $171,537,760 $168,523,320 $168,523,320
 Payback  $35,676,000 $154,383,984 $151,670,988 $151,670,988
General Fund Administration @ 1% $396,400 $1,715,378 $1,685,233 $1,685,233
Net Slot Machine Income @ 10% $3,567,600 $15,438,398 $15,167,099 $15,167,099
38% of Net Slot Machine Income to State & Municipality $1,355,688 $5,866,592 $5,763,497 $5,763,497
2007-08 2008-09 2009-10 2010-11
Required Distribution of Net Slot Machine Income (33% State & 5% Neighboring Municipality Share)
General Fund  (3%) $107,028 $463,152 $455,013 $455,013
University of Maine Scholarship Fund  (2.5%) $89,190 $385,960 $379,177 $379,177
Community College System scholarship program (2.5%) $89,190 $385,960 $379,177 $379,177
Community College System - general fund  (5%) $178,380 $771,920 $758,355 $758,355
Bureau of Veterans Services  (5%) $178,380 $771,920 $758,355 $758,355
Maine Technology Institute  (5%) $178,380 $771,920 $758,355 $758,355
Nonprofit organizations licensed to conduct beano  (5%) $178,380 $771,920 $758,355 $758,355
Neighboring municipality  (5%) $178,380 $771,920 $758,355 $758,355
Federally recognized tribes not licensed for slots  (5%) $178,380 $771,920 $758,355 $758,355
Other Revenue Impacts:
License fees to the General Fund $101,050 $62,725 $62,725 $62,725
Reimbursements to the General Fund $161,116 $0 $0 $0
Summary of Revenue Impacts
General Fund:
 - 1% of Total Slot Income $396,400 $1,715,378 $1,685,233 $1,685,233
 - 3% of Net Slot Machine Income $107,028 $463,152 $455,013 $455,013
 - Reimbursements  $161,116 $0 $0 $0
 - License fees to the General Fund $101,050 $62,725 $62,725 $62,725
General Fund Total $765,594 $2,241,255 $2,202,971 $2,202,971
Other Special Revenue Funds:
 - University of Maine Scholarship Fund $89,190 $385,960 $379,177 $379,177
 - Community College System scholarship program  $89,190 $385,960 $379,177 $379,177
 - Community College System - general fund   $178,380 $771,920 $758,355 $758,355
 - Bureau of Veterans Services   $178,380 $771,920 $758,355 $758,355
 - Maine Technology Institute   $178,380 $771,920 $758,355 $758,355
 - Nonprofit organizations licensed to conduct beano   $178,380 $771,920 $758,355 $758,355
 - Neighboring municipality  $178,380 $771,920 $758,355 $758,355
 - Federally recognized tribes not licensed for slots   $178,380 $771,920 $758,355 $758,355
 Other Special Revenue Total $1,248,660 $5,403,440 $5,308,484 $5,308,484
2007-08 2008-09 2009-10 2010-11
Summary of Expenditure Impacts
General Fund Appropriations:
 - Public Safety 1 $317,603 $192,177 $195,651 $199,229
 General Fund Total $317,603 $192,177 $195,651 $199,229
Other Special Revenue Funds Allocations2:
 Maine Community College System
 - scholarship program $89,190 $385,960 $379,177 $379,177
 - System general fund $178,380 $771,920 $758,355 $758,355
 Maine Community College System -Total $267,570 $1,157,880 $1,137,532 $1,137,532
Defense, Veterans and Emergency Management
 - Bureau of Veterans Services   $178,380 $771,920 $758,355 $758,355
Defense, Veterans and Emergency Management - Total $178,380 $771,920 $758,355 $758,355
Economic and Community Development
 - Maine Technology Institute   $178,380 $771,920 $758,355 $758,355
Economic and Community Development - Total $178,380 $771,920 $758,355 $758,355
Public Safety
 - Nonprofit organizations licensed to conduct beano   $178,380 $771,920 $758,355 $758,355
 - Neighboring municipality  $178,380 $771,920 $758,355 $758,355
 - Federally recognized tribes not licensed for slots   $178,380 $771,920 $758,355 $758,355
Public Safety- Total $535,140 $2,315,760 $2,275,065 $2,275,065
University of Maine System
 - University of Maine Scholarship Fund $89,190 $385,960 $379,177 $379,177
University of Maine System - Total $89,190 $385,960 $379,177 $379,177
Other Special Revenue Funds Total $1,248,660 $5,403,440 $5,308,484 $5,308,484
Notes;
1 The Gambling Control Board within the Department of Public Safety will require additional General Fund appropriations of $317,603 and $192,177 in fiscal years 2007-08 and  2008-09, respectively,  for the costs of  two additional Public Safety Inspector positions and necessary operating costs.
2 Allocations are needed to allow the distribution of the additional dedicated revenue.