With budgeting crunching on the horizon in Indiana, the state's horse racing industry is doing all it can to ensure its lucrative subsidy stays intact

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In a video report by WISH TV, Purdue University economist Jonathon Furdek said that the slots subsidies in Indiana have produced “our own industry of developing horses, developing riders."

The Indiana horse racing industry has produced a study which indicates that the $60 million subsidy it receives turns into one billion dollars in economic activity.

Veterinarian and former state senator Bob Jackman agrees, as he said the “numbers clearly indicate that the investment is paying huge dividends.”

The governor of Indiana, Mitch Daniels, has tossed a word of caution into the mix. He has said that the next two-year budget will spare education by avoiding tax hikes and school cuts, meaning that everyone else that depends on state funding should be nervous.

State Senator Jim Merritt warns that “every line in the budget will have scrutiny.” The report said that lawmakers in the state will pressured to make cuts. "Everyone that is a part of the budget pie has reason for concern," said Merritt.

Asked if he is worried about the subsidy, Jackman said "yes."

(With files from WISH TV and Harness Tracks of America)