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Subcommittee flags lottery bond risks as Pimlico renovation moves forward
Summary
Analysts told the Education and Economic Development Subcommittee that Maryland Stadium Authority projects rely heavily on lottery bond proceeds and coverage ratios have tightened; MSA defended the Pimlico/Laurel plan and witnesses urged preserving the major events fund.
The Education and Economic Development Subcommittee heard detailed budget testimony March 30 on the Maryland Stadium Authority’s FY27 allowance, with analysts and the authority trading views about reliance on lottery bond proceeds and the fiscal risks of ongoing projects including the Pimlico renovation.
David Legislative Services analyst Patrick Frank told members the authority relies primarily on two revenue streams: state special funds that support debt service and non‑budgeted funds from bond proceeds and the authority’s own operating revenues. He flagged lottery bond coverage ratios as a key metric for fiscal health, saying, “If your biggest fund source is lottery funds and you issue a lot of bonds, you probably should pay attention to the coverage ratios of those bonds.” The DLS materials show that heavy distributions since 2019 have pushed the ratio down close to a 3x benchmark used by rating agencies.
MSA officials defended their mix of funding and described how the current construction plan is being…
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