Today the Indiana Supreme Court issued a decision in the Foundations of East Chicago’s challenge to the constitutionality of the portion of the 2007 Budget Bill which purports to give the City of East Chicago the unilateral ability to rewrite the agreement with the casino licensee in East Chicago which provides funding to the Foundations, the City and a for profit development business. The City has adopted an ordinance attempting to redirect to itself all funding under that agreement.
Instead of addressing the constitutionality of the bill, the Supreme Court ruled that the issue of whether the funding under the agreement should be redirected was something within the exclusive province of the Indiana Gaming Commission. The Supreme Court reemphasized its earlier declaration that “the City alone could not redirect gaming revenue flowing to private entities by means of the ordinance it adopted … or by other means, for that matter.”
Russ Taylor, Executive Director of the Foundations of East Chicago, stated “Although the Foundations had sought a declaration that the statute was unconstitutional, we are gratified by the Supreme Court’s confirmation that the City cannot act as it has. We have always maintained that the Gaming Commission has authority over the agreement and have worked positively with the Gaming Commission in addressing issues concerning the agreement.”
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