Michigan is stuck in a one-state recession with an unemployment rate double the national average.
In that climate, every legislative proposal has to be carefully considered and widely debated before it's acted upon. HB 5074 is a critical example.
For the third time, the Michigan House of Representatives is being asked to vote on this legislation, which would ban smoking in all public facilities.
Twice the House has supported this legislation, with exemptions for bingo halls, cigar and martini bars, and casinos. In the coming days, the House, amid extreme pressure, will be asked to vote again on the matter, this time without the exemptions.
Legislators should be proud to send a unified message that we are protecting the health and well-being of every resident and visitor who patronizes public facilities in Michigan. Those who argue on behalf of the employees' preference should survey whether employees would choose a smoke-free environment over the threat of losing their jobs through a resulting downsizing.
How viable is a cigar and martini bar if you can't smoke cigars? As for casinos, prior to a 2006 smoking ban at Casino Windsor, many U.S. citizens chose the Canadian facility over Detroit's largely due to the favorable currency exchange rate they enjoyed.
After the ban took effect, those patrons immediately returned to Detroit's gaming facilities. Casino Windsor saw a 25% reduction in revenue, while revenue at the Detroit facilities increased by $70 million. Approximately 60 days after the ban, Casino Windsor laid off 300 workers while the Detroit casinos were growing toward 7,500 jobs.
Choice impacted Casino Windsor's revenue. At least 25% of Casino Windsor's patrons chose smoking facilities over favorable exchange rates.
In Michigan, the proposed ban is not enforceable in Indian casinos, which pay only 6%-8% in gaming revenue taxes to the state, versus the 21% paid by their nontribal counterparts. Again, without the exemptions, gamers would be offered a choice. How much of the $100 million paid each year by Detroit's three casinos can Michigan's budget afford to lose?
Combined, the three Detroit casinos are one of the city's top employers, projected to soon be providing 10,000 jobs.
If a ban is enacted and results in a 20%-25% loss for Detroit's casinos, we eliminate the projected 2,500 new jobs and threaten jobs already established. Greektown has said if it realizes similar losses, it would be forced to close.
As legislators, we have to take two things into consideration: the economy and personal choice.
The three exemption categories are establishments of choice, not necessity. The entertainment industry is one that we have incentivized to come to Michigan to diversify a declining manufacturing industry. If passed with no exemptions, legislators would hurt the industry that we are attempting to grow as major employers and taxpayers in our state.
After voters approved their existence, the casinos invested nearly $2 billion in Detroit and Michigan, and contributed nearly $200 million to Detroit in gaming revenue last year alone.
The three Detroit casinos provide more property and income tax revenue to the state than any other Michigan gaming facility. Approaching another significant budget deficit, we as legislators are responsible for remaining focused on improving Michigan's economy for the hard-working families who are depending on it.
BERT JOHNSON represents Detroit's 5th district in the Michigan House of Representatives. He also chairs the House Detroit Delegation. Write to him in care of the Free Press Editorial Page, 615 W. Lafayette, Detroit, MI 48226 or at oped@freepress.com.
In that climate, every legislative proposal has to be carefully considered and widely debated before it's acted upon. HB 5074 is a critical example.
For the third time, the Michigan House of Representatives is being asked to vote on this legislation, which would ban smoking in all public facilities.
Twice the House has supported this legislation, with exemptions for bingo halls, cigar and martini bars, and casinos. In the coming days, the House, amid extreme pressure, will be asked to vote again on the matter, this time without the exemptions.
Legislators should be proud to send a unified message that we are protecting the health and well-being of every resident and visitor who patronizes public facilities in Michigan. Those who argue on behalf of the employees' preference should survey whether employees would choose a smoke-free environment over the threat of losing their jobs through a resulting downsizing.
How viable is a cigar and martini bar if you can't smoke cigars? As for casinos, prior to a 2006 smoking ban at Casino Windsor, many U.S. citizens chose the Canadian facility over Detroit's largely due to the favorable currency exchange rate they enjoyed.
After the ban took effect, those patrons immediately returned to Detroit's gaming facilities. Casino Windsor saw a 25% reduction in revenue, while revenue at the Detroit facilities increased by $70 million. Approximately 60 days after the ban, Casino Windsor laid off 300 workers while the Detroit casinos were growing toward 7,500 jobs.
Choice impacted Casino Windsor's revenue. At least 25% of Casino Windsor's patrons chose smoking facilities over favorable exchange rates.
In Michigan, the proposed ban is not enforceable in Indian casinos, which pay only 6%-8% in gaming revenue taxes to the state, versus the 21% paid by their nontribal counterparts. Again, without the exemptions, gamers would be offered a choice. How much of the $100 million paid each year by Detroit's three casinos can Michigan's budget afford to lose?
Combined, the three Detroit casinos are one of the city's top employers, projected to soon be providing 10,000 jobs.
If a ban is enacted and results in a 20%-25% loss for Detroit's casinos, we eliminate the projected 2,500 new jobs and threaten jobs already established. Greektown has said if it realizes similar losses, it would be forced to close.
As legislators, we have to take two things into consideration: the economy and personal choice.
The three exemption categories are establishments of choice, not necessity. The entertainment industry is one that we have incentivized to come to Michigan to diversify a declining manufacturing industry. If passed with no exemptions, legislators would hurt the industry that we are attempting to grow as major employers and taxpayers in our state.
After voters approved their existence, the casinos invested nearly $2 billion in Detroit and Michigan, and contributed nearly $200 million to Detroit in gaming revenue last year alone.
The three Detroit casinos provide more property and income tax revenue to the state than any other Michigan gaming facility. Approaching another significant budget deficit, we as legislators are responsible for remaining focused on improving Michigan's economy for the hard-working families who are depending on it.
BERT JOHNSON represents Detroit's 5th district in the Michigan House of Representatives. He also chairs the House Detroit Delegation. Write to him in care of the Free Press Editorial Page, 615 W. Lafayette, Detroit, MI 48226 or at oped@freepress.com.
Posts
No comments:
Post a Comment