Political officials are sorting through the details of Gov. Steve Beshear’s proposal for 12 casinos throughout the commonwealth, including one at Franklin’s Kentucky Downs horse track.

“We’ve been wrestling with this issue for over a decade now,” Beshear said Thursday. “It’s been debated and discussed, but it has never been finally decided, and I think it is time to finally let the people decide this issue.”

Although Kentucky has a long tradition of wagering at horse tracks, state law forbids casinos. Beshear wants lawmakers to approve a measure that would allow voters to change the constitution to allow them.

“We support Gov. Beshear in his efforts and we understand the economic impact this will make on the commonwealth of Kentucky and the racing industry in the state,” said Kentucky Downs General Manager Jon Goodman. “This will make us more competitive with other states that have casinos and ‘racinos’ (race tracks with casinos).”

Goodman said he’s ready to see the proposal on the ballot.

“We would like to see people have a chance to make a decision. Let the people choose – that’s what democracy is all about,” he said.

However, Franklin Mayor Jim Brown voiced concerns about infrastructure and personnel costs this morning in response to the proposal.

“If it comes about, I’m hoping that legislation will allow sufficient funds for local government to make the changes we will have to make,” Brown said. “I guess there’s a lot more to it than we can imagine at this point. The growth will obviously impact our community and we hope we can do it in a positive way.”

Brown said upgrading a sewer system that is almost 40 years old, increasing the number of police officers who would service the area and improving other infrastructure would be needed to accommodate a casino at Kentucky Downs.

“My concern for the community is that we derive enough revenue from it that will offset the burden of making the infrastructure improvements and adding personnel,” Brown said. “I just want to make sure it’s not at the expense of the taxpayers of Franklin.”

In examining the 137-page HB 537, which spells out the specifics for areas hosting the seven casinos to open at horse tracks and five more in communities along the state’s borders with Indiana, Ohio, Tennessee and West Virginia, Simpson County Judge-Executive Jim Henderson said there are a lot of questions and details to be filtered through.

“It’s not something that’s easily digested,” he said.

Henderson’s initial interpretation of the legislation shows Kentucky Downs would have to pony up a $75 million license fee. Having a casino at Kentucky Downs would not be subject to a local referendum, Henderson said.

“The locations throughout the state that have an existing horse track would not have a local referendum on whether or not to allow a casino in that community – the five freestanding casinos proposed would,” Henderson said.

Beshear said his proposal could generate $600 million a year in additional revenue for state government after all the casinos are operating. He said the proposal also would generate $500 million in upfront application and licensing fees in 2009 and about $330 million in 2010.

Henderson said the move would distribute $18 million among Franklin and the other 11 communities that would host casinos – something Henderson believes may help offset upfront costs.

“I don’t think its likely to pass the legislature from what I’m hearing,” Henderson said. “I don’t believe the Senate will approve it even if the House does. That’s what I’m hearing from some of my colleagues and friends in Frankfort.”

Henderson opposes casinos for Franklin, he said.

“I don’t think the potential short term gains offset the long term consequences of casinos in Franklin,” Henderson said.

Rep. Rob Wilkey, D-Scottsville, who is a sponsor of HB 537, said it’s too early to determine whether it will pass.

“I think as always, the amount of support this legislation will have will depend on the final form,” he said.

Wilkey said the initial hurdle is to allow people to decide if they want expanded gaming.

“Some are for it, many are against it and people want to have the right to vote on the issue,” Wilkey said. “The enabling legislation to me is a long way from completed form. I think that we will simplify it just like we will the amendment considerably.”

Under the current proposal, casinos would be built at or near horse tracks in Florence, Franklin, Henderson, Lexington, Louisville, Paducah and Prestonsburg. Border towns that would be in line for casinos include Ashland, Covington, Hopkinsville, London and Owensboro.

Beshear had made the casino proposal a centerpiece in his campaign last year against former Gov. Ernie Fletcher, saying such a move would generate needed revenue for state government.

Half of the revenue from state taxes on casinos would be used to fund education under Beshear’s plan. In addition, 20 percent would go to health care initiatives, including care for the elderly and for poor children. The remainder would be used for a variety of state and local initiatives.

The proposal unveiled Thursday shows a marked increase in the amount of tax revenue casinos could generate for the state – $100 million more than Beshear had previously projected.

Beshear has been warning that the state is facing a financial crisis, and the revenue is sorely needed to help offset a projected $900 million shortfall over the next two fiscal years.

State Sen. Charlie Borders, chairman of the powerful Senate Appropriations and Revenue Committee, said the $1 billion to $2 billion that Kentuckians would have to lose in casinos to generate the revenue that Beshear is projecting is money that would be diverted from retail businesses around the state.

“In my opinion, this would be devastating to the commonwealth,” said Borders, R-Grayson, a harsh critic of the proposal who predicts that it won’t pass.

“I just don’t see where the votes will come form,” he said. “We have very few members, in my opinion, who will bend to pressure.”

Rep. Stan Lee, R-Lexington, said he thought the proposed ballot question was “deceptive” because it hides the core issue behind a discussion of what the money would be used to pay for.

The proposal asks: “Are you in favor of increasing state financial support for elementary and secondary education, expanding health care for senior citizens, children and others, support for local governments, and combating drug and alcohol abuse and other important programs by permitting the General Assembly to authorize up to five casinos subject to approval of the voters in the city or county where the casino is located; and up to seven casinos licenses for existing horse racing associations, all of which will be subject to the approval of a state agency created to oversee casino gaming?”

Lee called on lawmakers to either change the wording or reject it outright.

“There’s no way you’re ever going to make me believe that casinos are going to bring the kind of money that they’re projecting,” he said. “I don’t believe it’ll happen, and I think it’s a bad bet for the commonwealth.”

—The Associated Press contributed to this report.