Subsidies provided by Indiana casinos to the state&rsquo;s Thoroughbred horsemen through purses and breeders&rsquo; funds would drop 23 percent in 2012 under a proposed budget introduced by Gov. Mitch Daniels, according to a fiscal impact statement distributed by the state.\r\nSubsidies for the Thoroughbred industry would drop from a projected $26.1 million in 2012 to $18.1 million if the horse racing cuts in the budget are approved, according to the statement. Subsidies to the Standardbred industry would be cut a similar amount, with the savings transferred to the state&rsquo;s general fund.\r\nThe cuts are being considered at a time when the state is searching for ways to cut spending and raise funds to plug a budget deficit. Negotiations on the budget are expected to proceed at least through the spring.\r\n&ldquo;Everyone in the racing industry knew that there was certainly a possibility of a reduction in the horsemen&rsquo;s share of slots revenue,&rdquo; said Joe Gorajec, executive director of the Indiana Horse Racing Commission. &ldquo;This is a very fiscally conservative state, and the economy being what it is and the state budget being what it is, there&rsquo;s tightening going on wherever you look.&rdquo;\r\nIndiana&rsquo;s two racetracks, Indiana Downs and Hoosier Downs, both operate casinos. The tracks held 123 live racing dates for Thoroughbreds in 2010.