Galion Schools Set to Receive Casino Tax Proceeds

There’s some good revenue news on Portland Way North.

On Wednesday, industry experts issued projections for revenue from the state’s four new casinos. With modest benefits coming in the next two years as the facilities come online, the total tax revenue by the end of 2013 should amount to some $643.5 million annually, according to this article in the Plain Dealer.

According to the Ohio State Constitution, casino tax revenue is to be split between Ohio’s eight largest communities and the state’s 610 school districts, including Galion City Schools. Schools receive a proportionate share no matter where they are located in the state – they need not be situated near a casino operation.

For Galion Schools, it should result in revenue building over the next two years to an anticipated $290,000-plus annually by the end of 2013. This is based on the formula of $132.27 per student times the district’s enrollment of approximately 2,193 students.

Of course, this means that districts like Galion with a net outflow of students in open enrollment will lose some additional dollars to its neighbors.

The nearest casino to Galion will be that located on the west side of Columbus. According to this November article in the Columbus Dispatch, the “Hollywood Casino” will also feature green space, an RV park, and ponds – and will cost a hefty $400 million. Total estimated jobs are pegged at 2,000, with an additional 3,500 temporary construction jobs as well.

Author: GalionLive

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Comments

  1. Anthony says:

    Amazing how what thePD has today versus the Dispatch has today. The Dispatch is saying estimated tax revenue are way inflated as the Ohio Casinos are now downsizing as much as 40%.

    http://www.dispatchpolitics.com/live/content/local_news/stories/2011/02/17/copy/casinos-reduced-size-may-cut-profit.html?adsec=politics&sid=101

    Even these new figures may be way too high. These same so called experts predicted the new Casino is dowtown Pittsburgh was going to be raking in cash. Projections have been off by 75 % and the place is having great difficulties in meeting it’s obligations.

    Ohio was way too late to this gambling fever party and now the entire area is saturated with casinos that just poach gamblers from each other. Now add 4 more to the mix.

  2. Thomas says:

    The GalionLive story was published before the Dispatch article was available — and we would likely have referenced it to provide some additional perspective to the mix.

    That shared, the Dispatch article has more of a “wait and see” approach than an alarmist one. The “40% reduction” also refers to what the article calls a “starting” number, with additional seats to be added as time goes by.

    Case in point – the initial casino in Cleveland will open in the renovated Higbee’s Building; a second, larger casino will be built on recently purchased land immediately behind the Terminal Tower/Tower City shopping complex. That facility will not open until 2013 at the earliest.

    Interestingly from a Galion perspective, the new Cleveland casino will sit immediately across the Cuyahoga River from the largely vacant Scranton Peninsula. Both the Galion Community Hospital and the Galion Historical Society own a sizeable interest in a corporation that controls over 50 acres of that land — the casino land itself sold for approximately $85 million!

    As for Pittsburgh, you are right that it has had some issues. Pennsylvania is a state, however, which is now home to a good number of casinos. Now, however, there appears to be a turnaround there; the Rivers Casino has just won approval to expand; it has been cited as having one of the highest table game revenue rates in the state. http://www.post-gazette.com/pg/11027/1120904-28.stm

  3. Anthony says:

    It won’t be the panacea for fixing what ails Ohio that many assume.

    Pennsylvania does have several, mainly on the borders of other states.

    http://www.visitpacasinos.com/PA-Casino-Map.html

    You think they might be drawing Ohio gamblers ?

  4. Thomas says:

    Heavens, I don’t know anybody who thinks that they will be a “…panacea for fixing what ails Ohio.” After all, whatever revenue is obtained via taxes is likely to pale in comparison to what are anticipated cuts in state support for education.

    The simple truths, however, are as follows:

    1. The Ohio Constitution has been amended to allow for their arrival and operation.

    2. They are nearly 100% certain to produce at least some revenue during the time they are in operation. By law, taxes on that revenue have to come to the eight largest cities and Ohio’s schools. Galion City Schools will therefore benefit financially from their operation.

    3. This money will “spend” just like any other.

    I would offer the idea that the best possible move is to “wait and see” what develops, while realizing that some revenue will undoubtedly be heading our way.

    I traveled the relatively short distance from Salt Lake City to Wendover, Nevada during my five years in Utah on a handful of occasions, but it was rarely more than a novelty – and I doubt that I will frequent the Ohio casinos. On the other hand, I know Galionites personally who have for years taken trips to Windsor, Ontario or to the Ohio River casinos in Indiana — as many as five to six times a year. The new casinos will, I suspect, find an audience.

  5. Anthony says:

    I know plenty that assume it will solve everything. Not the most intellectual people to say the least.

    All we can do is wait and see what becomes. I don’t own any stocks of these companies and have no plans to.