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State Appropriations End for Oklahoma Horse Racing Commission
State horse racing officials have determined that the OHRC will be better served by being funded directly through it's industry.

State Appropriations End for Oklahoma Horse Racing Commission

OKLAHOMA CITY, OK—JUNE 28, 2017—Earlier this year a number of state agencies in Oklahoma received notice they may face budget cuts that could result in reductions-in-force, furloughs, or reduced services.

The Oklahoma Horse Racing Commission (OHRC) was one of three such agencies this week who ended up with no state appropriations at all.

While officials are in disagreement on what might happen to other two state agencies, those involved with the Oklahoma horse racing industry all seem on board with the decision to make the OHRC a non-appropriated agency.

Debbie Schauf, Executive Director of the Oklahoma Quarter Horse Racing Association, said industry officials had reviewed the dwindling state appropriations in recent years. They determined that the horse racing-oversight agency would be better served by being funded directly through the private industry.

"We have a pretty good feel for what it takes to regulate this industry," Schauf said. "To me, this is one of the best examples of good public policy I have seen in a long time."

Traditionally, income generated from horsemen and racetrack license fees, pari-mutuel taxes, fines and a percentage of electronic gaming revenue was placed in the general revenue fund, and the OHRC appropriation was determined annually based on legislative decisions. That revenue will now go directly to the OHRC, which agency director Kelly Cathey said will allow the agency to bypass the Legislature in receiving operational revenue.

"It requires racing industry participants (racetracks and horsemen) to be responsible for additional regulatory funding," Cathey said. "The merits of this measure were obviously clear to elected officials as it received overwhelming support from both legislative bodies, as well as racing industry participants themselves (Thoroughbred Racing Association of Oklahoma, Oklahoma Quarter Horse Racing Association, Remington Park, Will Rogers Downs and Fair Meadows Tulsa)."

Political analyst Scott Mitchell sees this as a positive move for Oklahoma's horse racing industry that would serve as a great example for other industries.

"I think it’ll pay dividends down the road," Mitchell said. "This is an example of where taxpayers get relief because some innovative people in the market decided to step up."

The agency requested $3.3 million this year, but additional revenues could be made available to OHRC due to a change in the state law that allows horse racing tracks to maintain the same operational hours as tribal casinos.