Disagreement over Allocation of Louisiana Gambling Revenues

Higher education, currently facing a $1.6 billion budget deficit for next year, may benefit greatly from state gambling money, according to Representative Joe Harrison of Napoleonville, Louisiana. Harrison believes that the share of gambling money that states receive should be used almost exclusively to support the costs of higher education.

“I’d give some to state police and to the Attorney General’s office,” Harrison said. “The rest should go where we voted for it, and that’s higher education.”

The constitutional amendment that created the state lottery was approved in 1990. In 1991, a series of laws resulted in the appropriation of a portion of gaming enterprise revenues to the state. Harrison pointed out that voters were sold on the idea of legalized gambling in the state with the impression that the revenues would be put toward the state’s higher education system.

“It’s something that was supposed to be done in accordance with what people voted for,” Harrison said.

Dane Morgan said that economic development was another area that was discussed as a potential beneficiary of the state’s gambling revenues. Morgan is chairman of the state Gaming Control Board.

“Economic development and education were certainly the primary points of discussion,” said Morgan.

In 2008, the state received $886 million from the proceeds of the state lottery, horse racing, video poker, land and river-based casinos, and racetracks. The Support Education in Louisiana First Fund received $175 million to distribute to the K-12 education system and higher education from gambling revenues, and an additional $131 million from the state lottery.

However, about $431 million went straight to the state’s general fund.

“We were sold a bill of goods,” said Representative Jerry Gisclair of Larose. “If gaming income was designed to support education, that’s where it should go.”

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