RebelAt, via Wikimedia Commons
Thank goodness rational people are taking pre-emptive strikes at Republican state Rep. John Diehl’s misguided notion to put the state lottery’s fate in the hands of voters.
Calling it “a dishonest way to fund education,” Diehl conveniently forgot that it is the state legislature that is short-changing public schools in Missouri. The state lottery will generate more than $278 million for the budget and the exact same amount could be targeted for education if the legislature decided to take that action.
Instead, Diehl and others trot out tired statements that the lottery has somehow failed education. They should look in the mirror—they are the respective culprits.
Administrative costs and retailer incentives ($110 million) take too large a bite out of the $278 million. The $16 million for advertising could also be reduced. Diehl is correct in that 25 cents on the dollar actually reaching schools is ridiculous.
Again, the state needs to pay the cost of the state lottery and the proceeds should go to education.
Many legislators say increasing the state fuel tax (17.3 cents per gallon, one of the nation’s lowest) would be costly for convenience stores that also sell gasoline. What do they think will happen if lottery sales were stripped from these same retailers?
Diehl supported tax cuts that survived a veto by Gov. Jeremiah “Jay” Nixon, which were created in part to keep pace with Kansas’ similar actions. Now Diehl wants to send millions of Missouri dollars to Kansas, Illinois, Arkansas and every other border state with no plans to end lotteries.
A statewide vote has given Missourians a constitutional amendment that restricts gun crime legislation, according to several prosecutors, and it will also most likely face a legal challenge. We should learn from this dangerous situation that statewide referendum votes are not a substitution for governance by elected officials.
Instead of Missouri backing away from the lottery, it should be at the forefront of the expansion of online gaming. It could bring desperately needed revenue to the state. All or some of this money could be targeted for education to supplement lottery funding for public schools.
FORBES reports that two bills aimed at legalizing online gaming in California stalled in August but will be back on the legislative agenda in 2015. The debate in California has been going on for five years and is not going away.
Nevada, Delaware, and New Jersey have already legalized online gambling, primarily poker games.
Although Delaware and Nevada reported varying sales in August, each state has reaped hundreds of thousands of dollars monthly.
Diehl’s idea to cut the lottery is backward thinking. For Missouri to prosper, it has to start thinking about being on the cutting edge.
