by Bill Finley, for Harness Racing Update

Fair Haven, NJ — A budget proposal put forth by Indiana Governor Mitch Daniels calls for a 43 percent reduction in the amount horse racing receives from racetrack slot machines, with the money instead going to the state’s general fund.

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With the vast majority of purse monies at the Indiana tracks coming from slot revenues, the budget could mean that as much as $12 million could be lost in the coming year when it comes to purses and awards.

The budget must still go through several channels before being enacted and it can be changed after other state lawmakers are heard from, but industry sources said they were not confident there would major changes forthcoming when it came to racing.

During the most recently concluded fiscal year, a total of $24 million was paid out in purses and awards at Hoosier Park and Indiana Downs during their standardbred meets.

“We’ve tried to look at this as just proposed legislation at this point, and it’s going to be a long session,” said Mike Merkel, a director with the Indiana Standardbred Association. “Obviously, we’re not pleased. But we’re trying to get facts and figures right now and not try to be too judgmental until we know the final impact. We have several people looking at the bills and doing the calculations and there are still some unknowns that we need to be able to determine before we can make a final determination on what the impact will be.”

The new budget will not take effect until July 1, 2011.