FRANKFORT, Ky. (Dec 18, 2006) - The Kentucky Horse Racing Authority (KHRA) today approved an agreement to reconcile the Kentucky Thoroughbred Development Fund (KTDF). The KTDF is an incentive program to benefit thoroughbred owners of Kentucky-sired, Kentucky-foaled horses.
KDTF is funded by three-fourths of 1 percent of money wagered at state thoroughbred tracks and 2 percent of money wagered on thoroughbred races via inter-track wagering and simulcasting at thoroughbred tracks.
The KHRA, during a review of the various funds it administers, discovered the KTDF had previously paid horsemen more funds than had been earned by the race tracks in the state.
"In the course of our review it quickly became apparent there was a lack of financial information related to the fund," said William Street, chairman of the KHRA. "Our staff has spent the past several months working with the racing associations and horseman’s groups to reconcile the fund and begin the process of moving forward."
State laws established a KTDF advisory committee to work with racing associations and other groups to offer recommendations to the KHRA on the fund. The agreement adopted by the KHRA was a recommendation from the advisory committee.
"The agreement is a carefully crafted solution to a complex problem," said Rogers Beasley, director of racing for the Keeneland Association and a member of the advisory committee. "I want to compliment Mr. Street and Lisa Underwood of the racing authority and all of the tracks who worked together to create a win-win situation for all parties."
The agreement calls for the KHRA to reimburse each race track for invoices submitted as of Oct. 2, 2006, minus $130,000 from each track. Invoices submitted after Oct. 2, 2006 will be paid in full, except for Keeneland, which did not have any invoices submitted as of Oct. 2, 2006 and whose next invoice will be reduced by $130,000.
The KHRA will contribute $150,000 to the fund as a reimbursement for a fee paid to the former Kentucky Racing Commission and will not charge the KTDF for invoices sent by the state auditor of public accounts for a KTDF audit.
"Our research indicated an attempt was made in 1999 to reconcile the fund but that effort was unsuccessful," said Underwood, executive director of the KHRA. "This agreement not only reconciles the account but provides guidance for future payment procedures to avoid funding issues in the coming years, which is critical since the fund is so important to purse structures in the state."