Gambling initiative would raise money for education
Published Sept. 13, 2008
An initiative that would provide millions of dollars in education funding from gaming revenues will be on Missouri's Nov. 4 ballot.
But it's unclear whether total education funding will be increased in future budgets if the measure passes.
The initiative, called Proposition A, would raise the current casino gambling tax from 20 percent to 21 percent and repeal the current loss limit of $500.
In addition, the measure would cap the number of casinos allowed in the state at 13 and would repeal the use of cards at casinos used to track how much gamblers spend.
Proceeds gathered from casinos under the increased tax would be specifically earmarked for increasing state funding for elementary and secondary education.
According to an official estimate by State Auditor Susan Montee, K-12 education would receive $105 to $130 million per year. Additionally, $5 million to $7 million would be made available annually for higher education, early childhood development and veterans programs.
Scott Charton, spokesman for the Yes for Schools First Coalition, said the measure would essentially require casinos to pay $2 per entrant, with $1 going to the local government of the casino and the other going toward education.
According to the group's Web site, Missouri schools need more funding for teachers' salaries and per-pupil expenditures, of which Missouri is ranked 43rd and 38th in the country, respectfully.
"I've worked in education, and I know what the needs are," said Charton, a former UM system spokesman.
According to the initiative's language, the funds shall not be used to replace existing funding provided for elementary and secondary education.
Joe Martin, the chief of staff for the State Auditor's office, which would make sure the funds from the measure would be spent for their intended purpose, said that though tax revenues from casinos would bring more money to education funding, legislators could still use discretionary funds for purposes other than education spending.
Rep. Ed Robb, R-Columbia, said he does not support the measure because of the cap it places on the number of casinos in the state.
"That would be like saying we need a limit on the number of auto dealers or grocery stores," Robb said.
Robb said he disagrees with the measure also because he doesn't "particularly care" for dedicated funds, and said the funds should be available for higher priorities for the state.
Charton said all casinos in the state support the measure, as well as the Kansas City and Missouri chambers of commerce.
"Proposition A will both protect and increase the economic benefits and revenues that casinos provide to the Kansas City area, to our state and to Missouri schools," Pete Levi, Greater Kansas City Chamber of Commerce president, said in a news release.
Charton said casinos in Missouri are losing customers to casinos in Kansas and Illinois because of the loss limits. He said Nevada is the only other state with a regulatory limit on losses by customers at casinos.
"We're going to lose money to Kansas," Charton said. "It's a new border raid."
Pointing to a study conducted by the Missouri Gaming Commission, Charton said that a repeal of the loss limits would not be conducive to "problem gambling" by casino patrons.
According to the report, released in 2007, a clear majority of Missouri voters - more than 60 percent - support Missouri's loss limit law. However, the report said, more than 50 percent reported that there would be "not much difference" in their opinion of Missouri casinos if the law was repealed. In addition, the report says Missouri casinos would receive more high-budget patronage without a loss limit.