by John Pawlak, marketing director, USTA

Columbus, OH — Michigan’s fairs and some of its other racing and breeding programs are in jeopardy due to debates in Lansing regarding the state’s $1 billion budget deficit.

This past Monday, Michigan Harness Horsemen’s Association president Paula Maynard posted an explanation of the issues involved on the Association’s Web site, which said:

“A directive has been issued that freezes all state grant monies and disbursements from restricted funds, which includes the money in the Agriculture Equine Fund. An exception may be issued if funds fall under one of four categories and we believe the horsemen’s share of the Agriculture Equine Fund should be exempt under at least two of these categories.

“Until this past Friday, it was not known what procedure needed to be followed by the various state departments to even request an exception. Forms are being filed to request exceptions, but determinations may not be made for a couple weeks. Even then it will probably take another week or two before the funds are released, when and if, an exception to the freeze is authorized.

“Before everyone panics, this situation may be corrected if agreement is reached between the House, Senate and Executive Office that would close the more than $1 billion deficit in the state budget for the fiscal year ending September 30, 2007. In addition to the existing freeze, all state departments have been required to submit contingency plans for a ‘slowdown’ to ‘shutdown’ of state government services which may be implemented in May. The answers to questions regarding the anticipated outcome of the dilemma change several times each day.

“In the meantime, Breeder’s Awards are not being issued. Hazel Park has agreed to set purses at a seven percent increase from where we closed last year, even though their share of Agriculture Equine funding is included in the freeze. Jackson Raceway, also affected by the freeze, will open with a purse schedule of approximately 10 percent below last year’s schedule, due to increased racing days and decreases in statewide simulcast handle. We appreciate track management’s efforts to work with us to maintain purses at currently projected levels despite the uncertainty that exists with state funding to the purse pools.

“Funding for racing at the fairs and pari-mutuel tracks for colt stakes and futurities, as well as overnights at the fairs, is also frozen at this time with those programs scheduled to begin and be paid beginning in June. Horsemen are advised that in order to retain eligibility to the colt stakes program the sustaining payment now due must be timely made. Under the existing rules and conditions, if stakes races are declared off for any reason monies paid are refunded to horses eligible at the time the races are declared off.

“We are working daily with the Department of Agriculture and the Office of Racing Commissioner to move forward within the parameters that have now been established; both are strong advocates to protect the critical funding for the horse racing industry.

“The scope of the state’s financial crisis is monumental and extends well beyond horse racing. The current state of affairs is crucial to us, as it is to the many and varied other programs affected, which are critical to all residents of this state.”