Questions arose again on Monday about whether lottery funds can cover costs for the planned renovation of Pimlico Racetrack, which is competing for funding with other Maryland Stadium Authority projects.

At a meeting of the state’s Capital Debt Affordability Committee, Comptroller Brooke Lierman (D) asked Maryland Stadium Authority officials for details on revenue projections. She wanted to know if lottery funding could support hundreds of millions in bonds for Pimlico, along with projects at two Baltimore stadiums and the Blue Line Corridor project in Prince George’s County.

Lierman noted that last year, there were concerns that the lottery wouldn’t cover everything, but now it appears it might. Dawn Abshire, chief financial officer for the authority, explained that debt coverage depends on the project. For example, the Built to Learn education program has almost four times coverage for its bonds.

Abshire mentioned they’re just starting to plan for Pimlico, but last year’s football project had similar coverage. The Pimlico revitalization plan, passed this year, aims to save the racetrack, the Preakness Stakes, and revitalize the surrounding community.

In May, the Board of Public Works approved an agreement for the state to take ownership of the racecourse and license the Preakness Stakes. A state-created nonprofit would control thoroughbred racing in Maryland as 1/ST Racing exits operations.

The plan involves the Maryland Stadium Authority issuing $400 million in bonds for the facility and related projects. These bonds will be repaid through dedicated funds, increased slot machine revenues, and some funds from other racetracks. The first bonds are expected in May 2025.

Lierman asked if they’re approaching the limit of lottery income. Abshire acknowledged some concerns, especially with racing, as project costs increase. She noted they need to be aware of lottery coverage as they progress through the funding “waterfall,” with Pimlico at the end.

These funding concerns aren’t new. In March, legislative analysts warned that lottery funding might not cover bond debt service. Senate President Bill Ferguson said that while saving Pimlico and the horse industry is important, it “doesn’t come with a blank check.”

Ferguson added, “We support the industry a lot and we should. There’s lots of public policy reasons why this is an important industry for the state of Maryland. But everything has a limit.”