There has been much written here about Issue 3. In order for us to consider all sides of this controversy, I'd like to expand the conversation to include the following. I present the following position paper, written by a fiscal policy board in Illinois in 2004. Illnois at the time was also considering expanding its gaming industry to fund education.
This post is long, and I apologize for that. But substantive discussion cannot be done in one-liners. I think we can all agree that these points are critical, and should be considered now rather than later, especially if Issue 3 passes.
The whole report can be found here. Note that you will need Acrobat to access it.
http://www.voices4kids.org/casino.pdfThese points need to be addressed:
1) Does Issue 3 measure up to the goals of "equity, adequacy, and stability" that this report says are vital to ANY sound revenue policy? Does Issue 3 promote the goals of a state to provide basic services to its citizens, without in turn causing undue harm?
2) Gaming only has an impact near the area where it is located. This impact is, on the whole, mainly bad. Documented proof shows that problem (pathological) gambling doubles within 50 miles where casinos, etc., are located.
The above cannot be easily dismissed as a "morality play." A Wisconsin study (also cited in this report) showed that half the gamblers there had incomes of less than $30,000; moreover, in 2003, Illinois's gamblers lost $1.657 BILLION dollars, while total state revenue from gambling was $1.2 BILLION. While this $1.2 billion provided more revenue than public utility taxes, the position paper notes that in the end, relying on gaming revenues is ultimately regressive. The study aptly calls gaming a "back-door tax," paid by those who really can't afford it -- in more ways than one.
Related issues to this point include:
What if the economy takes a downturn and people stop spending their cash at the slots?
What if the state puts most of its eggs in one volatile basket? Shouldn't other, more stable forms of revenue supplement gaming to fund education?
Will funding to law enforcement and other social-service agencies meet the increased needs that are sure to ensue from more-available gaming? Or will that create its own financial drain on the state? (Note well: Social-service agencies are grossly underfunded and/or nonfunded as it is.)
Most important: How much money will these casinos need to generate on a YEARLY basis in order to keep Issue 3 viable over the long term, especially if the true "benefits" won't be realized until several years hence?
3) What will be the effects on existing businesses and tourism? In other words, since most of these places will be in Cleveland/Cuyahoga County, how will it affect places/things such as the Rock and Roll Hall of Fame, Indians, Browns, etc.? Will any potential loss of revenue to those venues -- and by extension Cleveland -- be offset?
How viable will these casinos be? How will they be run? Who will run them, and what is their track record?
4) How will the state oversee/regulate these places? How much money will it take to do so, and how much manpower?
5) As I have been saying here all week, it's time we begin to hold Columbus responsible to come up with a fair and workable plan to fund education at all levels. Legislators and courts have danced around this issue for years, and we all see what the results have been. The report makes some pretty common-sense suggestions, but most of them directly concern public, K-12 education. But colleges could benefit from raising state income taxes and broadening service sales taxes. I know that is a third-rail solution that all of us -- especially lawmakers -- jump back from. But the fact of the matter is, you get what you pay for. No truer words were ever spoken, especially when you're talking about education.
Issue 3, to me, still stands as a quick fix that will only create more, serious problems in the future. I think Ohio can do better to help its kids get the higher education that they all deserve.
I await your thoughts.