Commission faces HISA fee shortfall after enacted budget falls short; to seek options and may hold a special meeting

The Washington Horse Racing Commission confronted a funding shortfall for HISA fees after the enacted state budget provided $288,000—short of the $479,000 in an errata and well below the roughly $600,000 figure the agency had requested to cover HISA fees and support operations.

Executive Secretary Amanda Benton said the original staff ask with the governor’s office and the Office of Financial Management had been roughly $600,000 to cover HISA fees and bolster operations. Benton said an errata reduced the request on file to $479,000 for HISA fees only, and that the final budget provided $288,000. "We only got 288,000 which is not enough to cover the HISA fees," she said on the record.

Benton reported the commission’s projected fund balance at the end of the current biennium is about $260,000 and that the projected fund balance for the end of fiscal year 2027 is $262,124; staff said the fund balance is expected to fall below the Office of Financial Management’s $400,000 requirement by September unless revenues or expenses change. Commissioners discussed options including pursuing additional credits, asking industry partners or track operators for grant support, or notifying HISA that the commission cannot immediately pay the full fees.

Commissioners directed staff to work with the agency budget analyst, contact HISA to explain the funding shortfall, and schedule a special meeting once staff can present a clear set of options and precise figures for what the commission can afford without risking solvency.

Why it matters: HISA fees are a recurring regulatory cost that can materially affect the commission’s budget; with wagering handles declining and revenue pressures on the commission’s operating account, an insufficient state appropriation could shift costs to industry participants or force cuts in commission services.