Governor signs Hayashi's bill to increase school funding from lottery proceeds
Original post made on Apr 10, 2010
Read the full story here Web Link posted Saturday, April 10, 2010, 8:10 AM
on Apr 10, 2010 at 6:01 pm
The legislation does not increase the percentage of revenues for education. In fact, this measure removes the guaranteed percentage and allows for a commission to set the percentages for prize winnings and for education (Web Link)
"The intent of this bill is to allocate more money to prizes which in turn is expected to generate an increase in total sales revenue, allowing for an increase in the current level of funding allocated to public education. However, the exact impact of these changes will be a result of allocation strategies of the Lottery Commission, incentives to retailers, and other marketing events, all of which may ultimately influence the consumers' behavior on lottery spending."
Lotteries are regressive so the legislature is looking to dangle more money in front of those who are least able to pay, in order to fund education. The legislature is so unsure of this scheme, that it wrote into the bill a cancellation trigger to revert back to the current model if education funding is less than expected.
Given that lottery revenues have fallen in each of the last fiscal years from $3.318B in 06-07 to $2.055B, the amount for education has fallen from $1.206B to $1.048B, which is 1.3% of state total spending on education. This legistation is moving pennies around when instead our elected officials should be working on how to grow the economy, encourage business formation, and get people back to work, not how to get poor people to play the lottery.
on Apr 10, 2010 at 6:04 pm
Correction: Given that lottery revenues have fallen in each of the last three fiscal years from $3.318B in 06-07 to $2.955B in 08-09...
on Apr 10, 2010 at 6:06 pm
There is a leadership void in Sacramento. Why did the governor allow the budget crisis to happen in the first place?