On May 7^th, 2020, Maryland’s horse racing advocates achieved a major victory. Gov. Larry Hogan allowed the controversial Racing and Community Development Act of 2020[1] (RCDA) to become law without his signature,[2] thereby authorizing the Maryland Stadium Authority to issue $375 million in bonds to replace the state’s two main horse racetracks with gold-plated facilities. If everything works out as planned, Laurel Park in Anne Arundel County will be renovated first in 2021, then Pimlico Racecourse in Baltimore will be renovated next, into a multi-use facility for racing and other events. While much uncertainties lie ahead due to the ongoing global COVID-19 pandemic, the state hopes to issue bonds in 2021. The Maryland Stadium Authority also recently issued a request for proposal for architects who would like to redesign the tracks.[3]

In short, the RCDA epitomizes Maryland’s recent history of fiscal imprudence. Assuming no cost overruns, overhauling the two racetracks will cost $389 million. To finance the project, the state will jeopardize its AAA bond rating by borrowing $348 million in a form of 30-year bonds. The cost of repaying the bonds will be $17 million a year over 30 years — a total of $510 million.