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By JON BAKER LINCOLN — Town Council member Keith Macksoud wouldn't say he was irked when he discovered Lincoln's share of Twin River video lottery terminal revenue had plummeted from 1.45 to 1.26 percent, but he did set out to remedy the problem. Macksoud, who represents the Lime Rock district in which the casino sits, claimed he needed only one night to draft a resolution to return that percentage amount to its previous level of 1.45. On Tuesday, Sept. 15, the council needed a mere minute to unanimously pass that resolution, and it since has been sent not only to the state legislature but also Gov. Donald Carcieri.
“I want the General Assembly to take some action to get 1.45 percent of revenues generated by VLT gambling back in the town's hands,” Macksoud stated Friday. “I wouldn't say we're being ripped off, no, but I do believe we're no longer getting our fair share. Right now, the town is not receiving approximately $70,000 per month, and that's a lot of money. “We need that for our budget,” he continued. “The big thing is that the casino is still open 24 hours – in fact, '24/7' – and (patrons) use town services and roadways. They also impact the neighborhoods, and the town still is receiving less than we had just a few months ago … I'd say the town has failed to glean at least $140,000, and, actually, it's approaching $210,000. “What I want to do is encourage all Lincoln residents to contact their representatives and senators, and tell them they want action to restore the town's percentage back to 1.45 percent.” The problem began, Macksoud said, when the state began discussing a mandate of “24/7” gambling at the two Rhode Island casinos, including Twin River and Newport Grand. Naturally, that was deemed by Gov. Carcieri a key to remedying the state's economic throes. Macksoud indicated he was the lone Lincoln councilman to attend both hearings, one before the House Finance Committee, the other before a Senate panel. “I said, 'Instead of forcing '24/7' gambling on our residents, especially my constituents, why don't you consider a '24/3' format (on weekends)?'” he noted. “I also asked them to give us a higher percentage of the (VLT) revenue, and also allow the legislation to 'sunset' after one year.” That bill passed in both houses. “The reason I asked for the 'sunset' proviso was simple,” he said. “I wanted to look at the impact 24-hour gambling had on the town as a whole and also my Lime Rock neighbors. That is, is traffic a problem? Are there too many rescue runs? Is there an increase in crime? I wanted to see the precise impact. “I had heard all the negativity, but I wanted to be able to make an informed decision based on all the facts.” Earlier this summer, that legislation neared the end of its one-year term, and the General Assembly needed to take action to allow the casino to remain open 24 hours. The new bill gave the casino “24/7” capabilities, while allowing Lincoln's share of VLT cash flow to remain at 1.45 percent. The state legislature passed that as well. “There evidently were provisions in that bill Gov. Carcieri didn't like, so he vetoed,” Macksoud offered. “Because of the veto, we no longer enjoy the 1.45 percent; it reverted back … to the original agreement, which is 1.26. “There are two entities that control gambling at Twin River – the Division of Lotteries and the state legislature,” he continued. “The Division of Lotteries can't increase or decrease the percentage that goes to the host community. All it can do is say 'Yes' or 'No' to running the machines and the hours it can run them. “The General Assembly, on the other hand, is the body that has the power to decide where the money goes, and that's why I wrote the resolution. When the conversation was going back and forth between the governor and the legislature about the casinos' extended hours, I asked our town administrator (T. Joseph Almond) what the impact would be to Lincoln, and he said it would drop back to the original percentage … That adds up to over $700,000 a year that the town isn't being paid, but is desperately needed to budget.” Another issue at the helm, according to Macksoud, is the $700,000 car excise tax Lincoln failed to receive this year due to the governor's action. In essence, the taxpayers are still yielding their cash for parking vehicles in their driveways, but that money isn't being returned to the town, as has been the case in the past. “Our finance director, John Ward, sent his monthly business report to the council on Sept. 15, and stated the governor had announced his intent to withhold the last quarterly payment of vehicle excise tax phaseout money,” Macksoud said. “That means we're losing another $700,000. Add that to the lower VLT percentage, and the town could end up losing well over $1.4 million. Again, that's money we need to balance our budget.” Macksoud indicated he had no idea what the resolution's final result would be, but “I hope our elected officials will do whatever it takes to get it done. “The General Assembly already has voted to award us the 1.45 percentage; it was already there,” Macksoud added. “We're just hoping the legislature can override the governor's veto and pass something that restores us to the higher number.” Stated fellow Councilman John Flynn (District 2/Lonsdale): “I agree with (the resolution) 100 percent. The town is losing $70,000 a month, dating back to July 1. That bill expired on June 30, and the legislature didn't take any action, but the governor extended it under the old terms, which is a lower percentage. “Initially, the people in Lincoln voted against 24 hours (in a special election on Nov. 10, 2007), and – when the General Assembly passed '24 hours' – it did two things to appease the town: One was to raise the percentage to 1.45. and the other was to put in the sunset clause, and re-evaluate after one year. Residents had a lot of concerns, like people coming in overnight to gamble, and a possible rise in crime rate. That's why they put that provision in there. “I think the other part of that was seeing how the state did financially,” he added. “If it didn't bring in additional money, then why bother with it? But it did, and now Lincoln is suffering the consequences … . The town can't cut services anymore than it already has, and all the unions, except for teachers, accepted a wage freeze. The only other place to get it would be to raise property taxes, and that's something we (as a council) are dead-set against.”
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