Ohio High Court Allows Vote On Slots

COLUMBUS, Ohio -- Racetrack slots were sidelined by a high court decision Monday, potentially throwing the state budget off balance by nearly $1 billion and short-circuiting preparations that were well under way.

The ruling means video lottery terminals estimated to raise between $850 million and $933 million for public schools could be on hold until a vote is taken. The governor also has the option of using his executive power to authorize the machines without legislative approval.

In a 6-1 ruling, the high court ruled in favor of LetOhioVote.org, a committee of three private citizens that seeks to put the question on the November 2010 ballot. The group challenged Secretary of State Jennifer Brunner's rejection of its petitions and won.

The court ordered Brunner to accept the group's petitions, allowing the referendum process to go forward.

Spokesman Carlo LoParo said petitions would be re-submitted Monday. The court froze slots implementation as described in the state budget for 90 days to allow the group to collect the necessary number of signatures - 6 percent of voters in the last gubernatorial race - to go to the ballot.

If they succeed, the machines could be on hold until voters decide the question. LoParo said he is virtually certain enough signatures can be gathered by the deadline.

"There are millions of Ohioans that deserve a right to vote on this issue, and today's Supreme Court action provided them with an opportunity to weigh in on whether gambling should be expanded," LoParo said.

In their decision, justices overrode language that state lawmakers had attached to the slots plan that sought to shield the slots from such a vote. Gov. Ted Strickland authorized the machines by executive order and the Legislature included their proceeds as part of the state budget, which now faces a nearly $1 billion hole.

In a statement, Strickland said he was disappointed by the ruling and was evaluating what to do next.

The court rejected the state's argument that the slots revenue was an "appropriation" that, by definition, is shielded from the referendum process.

In writing for the majority, Justice Terrence O'Donnell noted that the passages in the budget bill that describe the video lottery terminal plan are separate from the line item in the bill that directs money from the Ohio Lottery Commission to education.

The court said budget provisions can't "merely relate" to appropriations and be shielded.

"The exception is for appropriations for the current expenses of the state government - not for enactment of laws (other than tax levies) designed to generate revenue that can be appropriated," the decision said.

The ruling specifically noted that it is not up to the court to worry about the impact of its decisions on the state budget.

"We are not unmindful of the effect our decision may have on the state budget, nor of the commendable efforts of the members of the executive and legislative branches of state government to fulfill their constitutional duties to balance the budget in Ohio," the decision said. "However, our own constitutional duty is to ensure compliance with the requirements of the Ohio Constitution irrespective of their effect on the state's current financial conditions."

Justice Paul Pfeifer was the sole dissenter. He said he views the slots proceeds as an appropriation.

The plan, he wrote, "is no mere legislative add-on, snuck into a mammoth bill. Instead, the VLT legislation is at the very heart of the budget bill, at the very heart of how Ohio is going to pay for its spending over the next two years. Without VLT-enabling legislation, the budget crumbles."

Strickland asked the Ohio Lottery Commission to call off its scheduled vote Monday on the rules of implementing slots in light of the court decision. A deadline for track owners to submit their first vendor payments to the states passed last week, and two companies had already paid.

The Democratic governor on Monday again defended his decision to use proceeds for legalizing 17,500 video lottery terminals to balance the budget, saying the slots were combined with $2 billion in cuts and program reductions to avoid raising taxes.

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