91直播

Federal

States Roll Dice on New Funding

By Michele McNeil 鈥 October 13, 2008 6 min read
  • Save to favorites
  • Print
Email Copy URL

Amid tight budgets and shrinking revenue, states are wagering that voters in next month鈥檚 elections will agree to expand state-sanctioned gambling in exchange for increased school aid.

Initiatives on six state ballots Nov. 4 involve gambling revenue intended to raise money for everything from community college funding and college scholarships to general K-12 operating aid.

Arkansas voters are being asked to decide on a new state lottery aimed at funneling up to $55 million into college scholarships. A Maryland slot machine proposal could bring in $660 million a year for K-12 schools.

Ohio and Maine may get their first commercial casinos, and voters in Colorado鈥檚 three gaming towns will be asked to increase bet limits, extend casino operating hours, and add new games. Missouri wants to lift its loss limits so gamblers can lose more money. Oregon鈥檚 measure is an exception鈥攅ducation funding there could drop under a proposed change in how the state鈥檚 gambling revenue is apportioned.

For some school advocacy groups and teachers鈥 unions, new or expanded gambling operations are a way to raise more funding when a tax increase isn鈥檛 politically possible. Even before the current global financial crisis, the states鈥 revenue outlook was bleak.

The latest tally counted 31 states with budget deficits totalling $40 billion鈥攆unding gaps that have already prompted at least 12 states to make targeted cuts to K-12 programs. (鈥淗ard Times Hit Schools,鈥 Aug. 27, 2008.)

鈥淭he money coming into state institutions keeps shrinking,鈥 said Judy Williams, the director of communications for the University of Arkansas at Little Rock, whose board of visitors voted Sept. 18 to endorse the constitutional amendment that would create a new state lottery. 鈥淲e have to always be looking for ways to come up with dollars.鈥

High Stakes

Forty-two states now have lotteries, 43 states have wagering on horse racing, 32 states have gambling through Native American tribes, 12 states have commercial casinos, and 11 have 鈥渞acinos鈥濃攖ypically slot machines housed in horse-betting facilities.

Altogether, these states reeled in $23 billion from gamblers in 2007, according to the Rockefeller Institute of Government, which is the public policy research arm of the State University of New York. But it鈥檚 unclear exactly how much of that has been dedicated to education, said the institute鈥檚 Lucy Dadayan, a senior policy analyst.

Perhaps the state with the most at stake in this round of gambling initiatives is Maryland, which has an estimated $1 billion deficit in its $14.5 billion budget.

Gov. Martin O鈥橫alley, a Democrat, has cast the proposal to allow slot machines in the state鈥檚 horse-wagering facilities as crucial for education funding. Groups for and against the slots proposal have launched radio and television ads to try to sway voters.

Slot machines await gamblers before the opening of business at Ameristar Casino in Kansas City, Mo., Sept. 30. Missourians will vote on Proposition A, a measure that would repeal the nation's only casino loss limit, in the upcoming general election.

The stakes are also high in Ohio, where counties would share about $200 million a year in casino revenue that could be used for any purpose, including schools.

But a bet on gambling is no sure thing. Research shows that people only have so much discretionary income, and in rough economic times, the amount of money gambled can drop. Casino revenue from the 12 states with commercial casinos dropped 2.2 percent in 2008, according to the Rockefeller Institute.

鈥淚n places like Nevada and New Jersey, which have been traditional gambling states, we鈥檙e seeing declines already,鈥 said Ms. Dadayan. 鈥淧eople just don鈥檛 have as much money to spend.鈥

And not every proposal promises to be lucrative for schools. The proposed Maine casino would bring in about $50 million its first year, with 10 percent of the net revenue going to education, mostly to college loans and scholarships. Just 1 percent would go general aid for K-12 schools.

What鈥檚 more, even if money is earmarked for education, that doesn鈥檛 mean all of the gambling profits will make it there.

A study published in the winter 2007 of the Education Finance and Policy journal that examined state lotteries found that only 50 percent to 70 percent of the gambling revenue earmarked for education actually was spent on it. Because lottery profits pass through state coffers before hitting their destination, money has sometimes 鈥渓eaked鈥 away to other parts of state government, the study found.

Social Issues

Pulling the Lever on Gambling-Related School Revenue

Ballot measures in six states aim to boost school funding through lotteries, casinos, slot machines, and other games.

Arkansas: Constitutional amendment to create a state lottery

Annual state revenue:
$55 million

Amount to schools:
$55 million for college scholarships

Missouri: Initiative to change state law to increase the limit on the amount of money gamblers can lose

Annual state revenue:
$156 million

Amount to schools:
$130 million for general K-12 aid

Maryland: Constitutional amendment to legalize slot machines

Annual state revenue:
$1.3 billion by 2013

Amount to schools:
$660 million for general K-12 aid

Colorado: Constitutional amendment to change bet limits, extend casino hours, add new games

Annual state revenue:
$39 million in the first year

Amount to schools:
$29 million for community colleges

Ohio: Constitutional amendment to authorize a casino in the state

Annual state revenue:
$200 million to be shared by all counties

Amount to schools:
Unknown (Each county makes its own spending decision.)

Maine: Citizens鈥 initiative to change state law to allow a commercial casino in the state

Annual state revenue:
$50 million

Amount to schools:
$5 million for college loans, scholarships, and general K-12 aid

SOURCE: 91直播

Many opponents also question whether important state priorities should be paid for through gambling, which they say comes with increased social costs, especially for low-income groups.

鈥淕ambling is a troubling way to fund education,鈥 said Tom Grey, the national field director for the Washington-based , a nonprofit group. He and others argue that gambling initiatives chiefly increase revenue to casinos and to gamblers, and not to schools.

For that reason, the League of Women Voters of Maryland鈥攚hich doesn鈥檛 often take a stand on legislation鈥攖ook the unusual step of coming out against that state鈥檚 slots proposal.

鈥淭o say that the primary purpose of the proposed video lottery terminals is raising revenue for specified educational purposes is untrue,鈥 the league said in a Sept. 12 statement. 鈥淭he actual primary purpose of video lottery terminals in this state鈥攁s it is anywhere鈥攊s to reward gamblers for playing the game.鈥

That sensitivity may explain why so many gambling-related campaigns go out of their way to make the issue about anything but lotteries or casinos.

鈥淵ou鈥檇 be hard-pressed to even know some of these initiatives are even about gambling,鈥 said Mr. Grey, of the anti-gambling coalition.

In Colorado, for example, the proponents鈥 group is called 鈥淐oloradans for Community Colleges鈥濃攖hough it also contains casino groups. The main group in Missouri looking to expand gambling is called the 鈥淵ES for Schools First Coalition,鈥 whose supporters include also include the casinos.

The emotions that surround gambling have put some education supporters in a tricky opposition.

Though many Missouri educators and district school officials are listed on the Schools First Coalition鈥檚 list of supporters, the Missouri State Teachers Association hasn鈥檛 taken a stance on the question鈥攊n part because the group鈥檚 governing body that would consider such an endorsement doesn鈥檛 meet again until after the election.

Todd Fuller, a spokesman for the 44,000-member group that isn鈥檛 affiliated with the National Education Association or the American Federation of Teachers, said he was somewhat surprised that gambling advocates weren鈥檛 exploiting schools even more to try to win support for the state measure. 鈥淚t鈥檚 actually not been as widespread as I thought it would be,鈥 he said.

Even so, educators across the state are still keenly aware of the gambling initiative.

鈥淲e have members call us and they want to know about the proposal,鈥 Mr. Fuller said. 鈥淏ut we tell them it really needs to be a decision they make.鈥

The Maryland State Teachers Association supports the slot machine proposal in that state, but decided not to launch a statewide campaign to drum up support because two large local bargaining units鈥攊n Prince George鈥檚 and Montgomery counties鈥攄ecided not to take a position on it.

But Clara Floyd, the 70,000-member union鈥檚 president, said MSTA plan a grassroots campaign urging members to vote for approval. With 鈥渘o appetite鈥 for tax increases between now and the next election in 2010, teachers fear the budget hole is so large that cuts to public schools cannot be avoided.

Ms. Floyd, who said that the MSTA board of directors debated the issue for hours before deciding to support it, asked: 鈥淚f not slots, then what鈥檚 the alternative?鈥

A version of this article appeared in the October 15, 2008 edition of 91直播 as States Roll Dice On New Funding

Events

This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of 91直播's editorial staff.
Sponsor
Student Well-Being Webinar
Improve School Culture and Engage Students: Archery鈥檚 Critical Role in Education
Changing lives one arrow at a time. Find out why administrators and principals are raving about archery in their schools.
Content provided by 
School Climate & Safety Webinar Engaging Every Student: How to Address Absenteeism and Build Belonging
Gain valuable insights and practical solutions to address absenteeism and build a more welcoming and supportive school environment.
Student Well-Being K-12 Essentials Forum Social-Emotional Learning 2025: Examining Priorities and Practices
Join this free virtual event to learn about SEL strategies, skills, and to hear from experts on the use and expansion of SEL programs.

EdWeek Top School Jobs

Teacher Jobs
Search over ten thousand teaching jobs nationwide 鈥 elementary, middle, high school and more.
Principal Jobs
Find hundreds of jobs for principals, assistant principals, and other school leadership roles.
Administrator Jobs
Over a thousand district-level jobs: superintendents, directors, more.
Support Staff Jobs
Search thousands of jobs, from paraprofessionals to counselors and more.

Read Next

Federal Trump Threatens Funds to Schools That Let Trans Athletes Compete on Girls' Teams
The sweeping order is a reversal from the Biden administration, and continues efforts from Trump to roll back protections for transgender youth and adults.
4 min read
President Donald Trump speaks before signing an executive order barring transgender female athletes from competing in women's or girls' sporting events, in the East Room of the White House, Wednesday, Feb. 5, 2025, in Washington.
President Donald Trump speaks before signing an executive order barring transgender female athletes from competing in women's or girls' sporting events, in the East Room of the White House, Wednesday, Feb. 5, 2025, in Washington.
Alex Brandon/AP
Federal Can Trump Ax the Education Department Without Congress?
Trump has been flexing his power through executive orders, and there's the potential for one targeting the Education Department.
7 min read
The U.S. Department of Education in Washington, D.C., is pictured on Feb. 21, 2021.
The U.S. Department of Education in Washington, D.C., is pictured on Feb. 21, 2021. President Donald Trump could issue an executive order to downsize the department. It would have limitations.
Graeme Sloan/Sipa USA via AP
Federal Top House Lawmaker Supports Trump's Bid to 'Depower' Education Department
The House education committee chairman believes "even the best-meaning bureaucrat" can't understand what's happening in local schools.
5 min read
Rep. Tim Walberg, R-Mich., speaks during an event at the COP28 U.N. Climate Summit on Dec. 9, 2023, in Dubai, United Arab Emirates.
Rep. Tim Walberg, R-Mich., speaks at the U.N. Climate Summit on Dec. 9, 2023, in Dubai. Walberg, the newly minted chair of the U.S. House's education and workforce committee, said at a Tuesday event that he wouldn't stand in the way of President Donald Trump's efforts to diminish or close the U.S. Department of Education.
Joshua A. Bickel/AP
Federal Title IX, School Choice, 鈥業ndoctrination鈥欌擧ow Trump Took on Schools in Week 2
It was a week in which the newly inaugurated president began wholeheartedly to act on his agenda for schools.
8 min read
Republican presidential nominee former President Donald Trump arrives at an election night watch party at the Palm Beach Convention Center on Nov. 6, 2024, in West Palm Beach, Fla.
Donald Trump arrives at an election night watch party at the Palm Beach Convention Center on Nov. 6, 2024, in West Palm Beach, Fla. Trump's second week in the White House featured his first direct foray into policymaking aimed directly at schools.
Evan Vucci/AP