Would casinos hurt lottery's financial aid?
By Linda B. Blackford
LBLACKFORD@HERALD-LEADER.COM
As legislative leaders drool over the possibility of $500 million in new revenue from casino gambling, the folks who dole out financial aid for Kentucky college students think of another number: 36,759.
That's how many needy Kentucky students were denied financial aid for college in 2007 because there simply wasn't enough money from the Kentucky Lottery to fund them.
State financial aid for higher education
comes from the Kentucky Lottery, and the lottery could take a hit if
and when slots and table games come to a racetrack or hotel near you.
National and state experts estimate that state lotteries can
temporarily lose between 3 percent and 10 percent in sales when other
forms of gambling are approved.
It's a hit the Kentucky Higher Education Assistance Authority says it can't afford. A 10 percent cut in lottery proceeds could cost $74 million in total sales when the fund for need-based aid is already underfunded to the tune of $69 million.
"We would be concerned about lost lottery revenues unless there was also a provision for new revenues to go into student aid," said Jo Carole Ellis, KHEAA's vice president for government relations.
However, the governor's office is keeping a tight hold over potential casino legislation and would not comment on whether casino proceeds would provide a cushion should the lottery -- and then financial aid -- get hurt.
Nick Phelps, student body president at the University of Kentucky, said that, in a state where college tuition rose 74 percent between 1999 and 2006, affordability is a constant anxiety.
"I disagree with any move that will take money away from education unless there's another one made that will bump it up," he said.
Sen. Tim Shaughnessy, D-Louisville, said casino gambling is a long way from being approved by the General Assembly, much less by state voters.
But he says, the casino debate helps illustrate a larger issue about lottery proceeds.
In some years, he said, the state's General Fund has had to supplement the state's college financial aid programs when lottery proceeds weren't enough.
"We need to realize the lottery is not funding the total needs of any of the three scholarship programs," he said.
The three programs are the Kentucky Educational Excellence Scholarship (KEES), a merit-based program, and two need-based programs, the College Access Program (CAP) for students going to public universities and the Kentucky Tuition Grant program (KTG) for those at private schools.
KEES is always fully funded because it is guaranteed to students who earn good grades in high school, whereas the other two programs are given out on a first-come, first-serve basis until the money runs out. Last year, the lottery provided $195.6 million to those programs.
Bloggers that read the post about shortage from the Lottery, should pay attention.
The reality is, and was, gambling is a poor public policy for supporting Education. It is more like Education takes from the lower income social \ economic class, in order to assist students who's family lack the financial ability for their children to get a college education.
Kentucky's Lottery was a social engineering thing. The politicians didn't want to raise taxes, to properly support Education, so they devised a GAME OF CHANCE. And, if you remember this was to CURE THE EDUCATION PROBLEMS IN KENTUCKY.
AS we can witness . . . it did not. Not only did it not change things in Education much,the money was swalloed up by a General Assewmbly that would not know the differnce between a debit and a credit.
I admire the stand by the Education people but it seems to me, their wording of post that YES, EDUCATION is OK for CASINO'S as long as we get our part of the money.
That is a bit misguided to me and offers no consideration for the hardships it will bring to 60,000 Kentucky families.
Jim Anderson Stivers
Posted by: jstivers@fewp.net | January 27, 2008 at 02:43 PM
Mr. Stivers, your comments were well said. It concerns me that many of our education professionals would be willing to sacrifice their moral positions for the "chance" at educational funding that may or may not arrive from the casinos.
Posted by: MOE | January 27, 2008 at 03:15 PM
What will they try after casinos disappoint the big spenders? Pimping out foster children?
What we really need to do is put government expenditures, contracts, and economic development agreements online so citizens can scrutinize watc for overspending by elected officials. Then we need to prioritize and start seriously cutting out some of what we spend money on now. Kentucky should lead the way on eliminating welfare for drug abusers (HB 221 and HB 190). Until we break the back of our drug and welfare cultures we are going to stay on the same merry-go-round.
Posted by: David Adams | January 27, 2008 at 09:11 PM
I can see educations concerns and feel for them and our children. However, to me for someone that is EDUCATED and can read and comprehend, the statement by education IMO is an INTELLECTUAL COMPROMISE.
That is when you know better but you buckle under cause money is more important than principals. Happens all the time in politics.
A TUSAMI of money is coming to support this issue. Now we will see if the citizens of Kentucky can be bought with the MILLIONS that Casino owners will give to get what they want.
If Casinos do come to Kentucky the fact is the participation in the LOTTERY goes down.
Another fact is when Casinos come to a RACETRACK GEOGRAPHY betting a horse goes down.
Posted by: Jim Anderson Stivers | January 28, 2008 at 10:16 AM
Business leaders back casino vote
CONSENSUS ON LOCATIONS IS LESS CERTAIN
By Janet Patton
JPATTON1@HERALD-LEADER.COM
FRANKFORT --
Leaders of five major regional Kentucky chambers of commerce assured legislators on Thursday that they support a statewide vote on expanded gambling, but they were less certain about where casinos should go.
One chamber leader, George Warren, president of the group from Henderson County, where Ellis Park is located, said his businessmen support casinos only at racetracks.
The Owensboro chamber, in a letter read to the members of the House subcommittee on expanded gambling, said members support expanded gambling with Owensboro as a site for an off-track license. Limiting casinos to tracks, they said, would be too detrimental to the economies of other cities. (end HL story, a lift)
It is the duty of Chamber people to support initiatives that help business. However, there are no MENTAL HEALTH ORGANIZATIONS that belong the CHAMBER OF COMMERCE IN KENTUCKY.
So, a statement by the PR PUSHERS, from Chambers, represent only one view, those of buiness operations that would stand to gain from the Casino issue.
It appears little consideration by CHAMBERS is given to the cost of treatment for those that will become compulsive gamblers. And, in MARYLAND, who has had Casinos for a time, that cost if reported as ONE BILLION DOLLARS.
I think it would be good business for the Chambers to go out and solicit PSYCHOLOGY OFFICES, and MENTAL HEALTH INSTITUTIONS.
Now, that way CHAMBERS GET MORE BANG FOR THEIR BUCK, BUT . . . AT WHAT COST TO OUR PEOPLE?
"I just wanna say!"
Jim Anderson Stivers
Posted by: Jim Anderson Stivers | January 28, 2008 at 10:30 AM
The 5 Mayors of the cities that join the Ohio river in Northern Ky all want a Casino in there areas. They have done a study that says that a Casino in that area would bring in more than 1/2 Billion Dollars per year. That one Casino fokes would pay the debt in Ky. This amount is only from procees that the casino would generate and not all of the extra Economic development. It is appearing more and more that Casinos are the holy grail of income stream for Ky State Government and the projects that we need. This is the greatest moment in Ky finincail history. There will be more in the news about this great development in Northern Ky, so stay tuned Ky.
Kelsey
Posted by: Kelsey | January 28, 2008 at 05:55 PM
Kelsey, your limited literacy is only overshadowed by your ineptness for sentence structure. The article DID NOT say the mayors had commissioned their own study for potential revenue streams from casinos. What the article did say was the mayors would like Northern KY to get their piece of the projected $500 million from the KEEP study. If your post was a deliberate attempt to misrepresent the issue, you should take your trash elsewhere. There has yet to be a complete release of the KEEP study for a verification of the revenue projections to substantitate the $500 million that Beshear is selling. Contrasting reports have the revenue streams at closer to $250 million a year with nearly $140 million or more in social management cost so it is not known how much the state coffers will actually achieve. People of the commonwealth need and deserve to be educated on the casino issue and I will guarantee they will find out much more than the information they are receiving from you.
Posted by: NKY Resident | January 29, 2008 at 09:59 AM
If you appreciate irony, you'll love my fantasy. The legislature agrees to casinos but not to place them at the tracks. Just three or four stand alone, destination resorts. And then let Churchhill and the others compete with the mob. Talk about just rewards!
But Stivers is right. The failure to demand a fair and equitable tax system results in our clutching at straws. Usually it's the Repubs that enjoy sticking it to the little folk in fiscal policy. Here we have the opposite. Mea culpa!
Posted by: Jimbo | January 29, 2008 at 11:38 AM