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Wednesday, February 2, 2011

Florida: False Promises

Failed promise that Florida Lottery would fund k-12 education casts long shadow over bill to add casino-style gaming

"Fool me once, shame on you. Fool me twice, shame on me."

State residents should ponder this aphorism before the 2011 Legislature considers a proposal by Sen. Dennis Jones, R-Seminole, to allow Las Vegas-style gaming at up to five large, destination resort casinos in the Sunshine State.

When lawmakers convene in March and debate Jones' proposal, the public should listen attentively for legislative promises of revenue for state coffers and new jobs for unemployed residents. And if the dialogue evokes a sense of deja vu, consider: We've been down this road before.

In 1986, state lawmakers sold the Florida Lottery to voters as a golden egg to fund education — specifically, K-12 education. Have lawmakers delivered on this promise?

No. Very little of the lottery revenue actually makes it into the K-12 classroom.

For fiscal 2011, which began July 1, the Legislature appropriated $1.3 billion in lottery money to the Educational Enhancement Trust Fund. The lion's share of this appropriation then was used for debt service and to fund Bright Futures scholarships. Of the remaining $250 million, $129.9 million was designated for school recognition awards, $103.8 million for class-size reduction and $7.3 million for workforce development.

What's left? A modest $9 million — or about $3.42 per student per year — that actually made it into the classroom.

So much for the promise of the lottery bolstering K-12 education.

"What's given on one hand was taken away by the other," said Indian River County Schools Superintendent Harry La Cava of the failed promise of lottery revenue for education.

Fast forward to the present: Adding Las Vegas-style gaming may increase state revenues and jobs, but at what cost? And will Florida simply be trading one set of problems for others?

Studies show many negative effects on communities when gaming options are close at hand. These include: all sorts of social problems, increases in foreclosures, and a loss of jobs in existing businesses and restaurants suddenly forced to compete with casinos.

A 2010 report by the New Hampshire Gambling Commission concluded that adding one casino (in New Hampshire) would raise $219 million in state revenue, but the total social cost would be $287.7 million: a net drain of $68.7 million.

Come March, when lawmakers begin promising increased state revenues and new jobs from Las Vegas-style gaming, remember the lottery.

Voters rolled snake eyes in that deal. When lawmakers begin making promises they can't — or won't — keep, it's time to walk away from the table.

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