California's state budget approved at the end of last month included a $4-million annual subsidy to help cover the state racing commission's costs over the next two years.Historically, the California Horse Racing Board (CHRB) has been funded using proceeds from wagering to grease the costs of drug testing and salaries.“As the board knows, CHRB's spending authority is set by legislation. And each year, pursuant to statute, the stakeholders, in this case, tracks and owner groups, develop a wagering formula to fund our budget,” said CHRB executive director Scott Chaney during Wednesday's board meeting.“That negotiation was made slightly easier this year because part of the state budget bill included a $4-million reduction in stakeholder regulatory burden,” Chaney added.When contacted after the meeting, Chaney said the $4 million will come from the state's general fund and will be used to help offset the commission's annual costs which come close to $17.1 million.Chaney then stressed, as he did during the meeting, that the funds were secured both in part to help stabilize an industry that contributes significantly to the state's coffers–over $11 billion in economic output annually–and in recognition of the work the state has done to improve its equine safety and welfare record.“This reduction represented a commitment to agriculture, jobs, and industry stabilization, in addition to recognition of our hard work with respect to animal welfare over the last few years. Thanks to Governor Newsom, and the legislature for their work on this. It's very much appreciated,” Chaney said, during the meeting.Commissioner Peter Stern, who joined the board last year, was central to these negotiations, said Chaney.This year's state budget was a contentiously fought affair as Gov. Gavin Newsom grappled with a huge budget deficit coupled with massive cuts from the federal government to the state's social service safety net.At the same time, these monies place California on more of an even keel with other states whose legislatures provide significant financial support to their racing industries. California is also something of an outlier in that it has no other revenues subsidizing its purses.The post California Legislature Provides $4-Million Annual State Commission Subsidy appeared first on TDN | Thoroughbred Daily News | Horse Racing News, Results and Video | Thoroughbred Breeding and Auctions.