An attempt to influence Secretary of State Robin Carnahan's decision on whether to allow a casino-backed initiative on the November ballot was spurred by a desire to see Cape Girardeau treated fairly and not an endorsement of bringing a casino to town, Mayor Jay Knudtson said Friday.

Knudtson on Thursday released a letter he sent to Carnahan urging her to reject the proposal because of what Knudtson called conflicts with the Missouri Constitution's requirements for initiative petitions. Knudtson said Friday he wrote the letter to do more than just make an emotional argument on behalf of his town. He also called the measure misleading and designed to disguise its true purpose of imposing a ban on new casinos.

"I do think there has been some, for lack of a better word, some bamboozling with this petition," Knudtson said. "More money for schools couldn't be further from the truth about what the true objective is -- it is big interests and big money protecting the interests of the metropolitan casinos."

Supporters of the measure, known as the Schools First Initiative, argue that they have met every legal requirement and that the measure puts schools first by setting aside new revenue for education and requiring annual audits to make sure the money does not replace existing revenue sources.

"Schools are huge beneficiaries of this proposal, and that is straightforward, and the auditor has declared the significant financial impact for schools," said Scott Charton, a spokesman for the Yes for Schools First Coalition.

Two local investors, David Knight, owner of Ole Hickory Pits, and Jim Riley, owner of Red Letter Communications, have purchased or have contracts to purchase a 25-acre area downtown along North Main Street. They had hoped to lure a casino company to apply for a license to operate in the area, but were shut down in June when the Missouri Gaming Commission voted to adopt a moratorium on new licenses until the ballot measure was decided.

Supporters of the initiative gathered 170,000 signatures to put the measure on the ballot. The initiative campaign was backed by $2.1 million from Ameristar and Pinnacle Entertainment, companies operating casinos in the Kansas City and St. Louis areas. Those signatures are being checked by local election authorities, which have until Wednesday to report the results of their review. Carnahan must decide by Aug. 5 whether she will allow the measure to be on the November ballot if there are enough signatures to meet the requirements.

The measure would cap the number of casino licenses in Missouri at the current level. In addition, it would eliminate the $500 loss limit on wagering, reduce the identification requirements for entering a casino and raise the taxes on casino profits to 21 percent. The proposal is estimated to raise $105 to $130 million annually for public education programs.

Knudtson argued that it fails to meet constitutional standards because of the language that will appear on the ballot. He also argued the fiscal note is misleading and the proposal covers more than one subject of state law.

"At the end of the day, you can be as emotional or passionate about this as you want to be, but it is going to come down to a legal opinion," Knudtson said. "You have got to be able to make a legal case and support a legal position."

The issues of the ballot language and fiscal note have already been the subject of a court case. Cole County Circuit Judge Patricia Joyce ruled the ballot language is fair and the challenge to the fiscal note was dropped before Joyce could rule. She deferred a decision on whether the measure contains more than one subject, dismissing that claim because the measure had not been placed on the ballot.

Ryan Hobart, spokesman for Carnahan, said she will determine whether the measure covers more than one subject before making a final decision whether to certify the measure for the ballot. The other two issues raised by Knudtson cannot be reviewed again because Joyce already ruled, he said.

The letter is aimed at supporting the investments of Knight and Riley, Knudtson said. He said he is personally torn over whether a casino would be good for the city. "My dog in this fight is not so much carrying a torch for a casino, but these two men have spent a lot money, invested a tremendous amount of resources to do something that could bring a facelift to downtown."

The letter does not necessarily represent an opinion other than his, Knudtson said. "My argument is that Cape Girardeau needs to be treated fairly in this process. I don't appreciate the swiftness with which this moratorium was imposed."

rkeller@semissourian.com

335-6611, extension 126

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