A BIBLICAL PERSPECTIVE ON LOTTERIES AND GAMBLING

A Look at the Lottery through a Georgian's Eyes

By Mike North Guest columnist Chattanooga Times Free Press 3-11-2001

Due to the recent debate and vote in the Tennessee legislature, the citizens of Tennessee will have the opportunity to vote to approve a lottery. As a Georgia resident, I have no interest in the success or failure of such an effort. The reason for my concern is that the lottery proponents point across the border to the schools in North Georgia as their motivation.

If only Tennessee had a lottery, proponents say, they could do what Georgia has done. I assure you that there is a massive misconception regarding the impact the Georgia lottery has had on our schools. I want the voters of Tennessee to make their decision on a lottery based on facts -- not hype. As a member of the Walker County Board of Education, I would like to share a few of those facts.

Many people mention the proliferation of new schools in Walker and Catoosa counties as evidence of the lottery's impact. In Walker County, all of our capital improvements were funded by the passage of a 1 percent special purpose local option sales tax. There is a provision in the lottery legislation that allows for proceeds to be applied to capital projects, but the system making application must qualify as a "rapidly growing district" to qualify for construction money. Few school districts qualify.

Last year, the lottery dispensed only enough construction funds to build seven average-size schools based on square footage. The total expenditure would not have covered construction expenditures for Walker and Catoosa counties, much less the 178 other districts in the state.

Also mentioned are the higher salaries teachers receive in Georgia. Again, this money does not come from the lottery. The state-funded portion of teacher salaries is paid from the general fund. Increases in benefits and other related costs are borne by the local taxpayers. In fact, mandatory pay increases passed down from the Legislature have resulted in property tax increases in both Walker and Catoosa counties.

The HOPE scholarship is the most popular lottery-funded program in Georgia. There is misunderstanding about the scholarships as well. It is perceived that the cost of a HOPE scholar's education is fully funded by the lottery, a voluntary tax. But is that entirely true?

Georgia's public universities are no different than the public universities in any other state. They are not allowed by law to pass the full cost of education along to the student in the form of tuition and fees. Therefore, the taxpaying public subsidizes tuition from the general fund. For each student that receives HOPE funding, the state pays approximately 200 percent more from the general fund to cover the costs that tuition and fees do not pay. In other words, if the HOPE pays $4,000 per student, the taxpayer kicks in another $8,000 from the general fund. This is no voluntary tax.

Furthermore, there are valid questions as to whether this investment of public money is warranted. The Atlanta Journal Constitution reported in January 2000 that the retention rate of students receiving Georgia's HOPE scholarship is troubling. According to data released by the Georgia Student Finance Commission, the statewide average HOPE retention rate for the 1997-98 freshman class was 36 percent. This means 64 percent of the freshmen students were ineligible to continue receiving the scholarships as sophomores.

Perhaps the largest misconception about the HOPE scholarship is that it helps lower-income students go to college. The truth is that most scholarships are being awarded to students from middle and upper middle-class families.

The pre-kindergarten program has taken the second largest share of lottery funds. While this program has been rated the most effectively administered lottery-funded program, I would simply remind the reader that the local school district does not benefit from this program in any way. In addition, the Pre-K program is becoming so popular that if lottery money is insufficient to support demand in the near future, there will be tremendous pressure to fund this program from the state general fund, or from local revenues. In fact, Walker County may experience a shortfall of as much as $15,000 this year in lottery funding for Pre-K, while not increasing enrollment from last year's level.

Technology is the only noticeable area where the local school districts have seen an impact. As many have observed, Walker County schools have many classrooms and labs with new computers. Do not misunderstand. We are pleased to accept the funding for improvements in technology. But the contribution is smaller than many think, and hardly warrants the celebration surrounding the lottery.

Walker County has a system-wide general fund budget of approximately $50 million. Of that, less than $200,000 comes from the lottery. Furthermore, we are being warned by the state that as lottery revenues fall and more funds are shifted into Pre-K and HOPE scholarships, the amount that the county receives for technology will likely decrease. It is conceivable that in a few years the county will receive no money whatsoever for K-12 classes and programs.

Despite their popularity, there is ample evidence that many of the beneficiaries of the Pre-K and HOPE programs are capable of paying for these services without the assistance of the lottery, while many needy families receive little benefit. Not only are the residents of Georgia's poorest counties spending more on lottery tickets, they are receiving disproportionately less educational aid from lottery funds than their wealthier neighbors. In 1997, students in the 10 poorest counties received 7 cents in education aid for every dollar spent on the lottery in their counties, compared to an average of 19.8 cents for students in wealthier counties.

From kindergarten through the 12th grade, Walker County schools receive little benefit from the lottery. If you choose to support the lottery, please ask Tennessee legislators to structure the proceeds so that local schools (K-12) receive real and noticeable funding. Do not imitate the Georgia system, or you will mimic Georgia in another area as well. You will see sales and property taxes continue to rise to support education, despite the millions of dollars you pump into the lottery coffers.

Mike North is the District 3 member of the Walker County, Ga., Board of Education.

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