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Lottery revenue hasn't hit jackpot
But funds going to education amount to a significant $572 million.

GAMING PAYS
Scott Meacham: The state treasurer was the state's financial director who led the tribal gaming compact negotiations.
 
By RANDY KREHBIEL World Staff Writer
Published: 7/20/2009  2:22 AM
Last Modified: 7/20/2009  3:36 AM

OKLAHOMA CITY — Oklahomans took odds on education in 2004 by making gambling a component of state education funding.

Five years later, Oklahoma education hasn't exactly hit the jackpot — but it hasn't crapped out, either.

Since voters approved a state lottery and authorized the negotiation of tribal gaming compacts in November 2004, gambling has contributed $572.7 million to Oklahoma education. That's well below projections, but still a significant sum.

"That's Gov. Henry's viewpoint," said Paul Sund, spokesman for Gov. Brad Henry. "That's (money) education wouldn't have had otherwise."

Gambling opponents dispute even that, however. Republicans, especially, are not hesitant to remind Henry, a popular Democrat, of the lottery's shortcomings.

"It's put some money into education, but not much," said House Majority Floor Leader Tad Jones of Claremore. "Over the same time, we've increased appropriations for education something like $900 million. I think what it shows is that the best way to fund education is through the appropriation process and to make it a priority."

Senate Majority Floor Leader Todd Lamb of Edmond says it's "difficult to prove" gambling has made any net contribution to education funding. He cites the cost of social problems attributed to gambling and says, "the lottery has produced addicts, led to fraud and broken up families."

The complaint that gambling has not lived up to its billing is rarely accompanied by a suggestion for an alternate revenue source.

The very idea that one might be needed, said state GOP Chairman Gary Jones, is "a ludicrous presumption."

Jones said money spent on slot machines, lottery tickets and card games would net as much revenue in sales taxes if it went for bread and shoes instead.

State Treasurer Scott Meacham, who as the state finance director led the tribal gaming compact negotiations, says that isn't so. He points out that although the state sales tax is 4.5 percent, the take on gaming ranges from 4 percent to 6 percent on some casino table games to 35 percent for the lottery.

"That argument just doesn't hold any water," he said.

Henry, as a state senator in 2001, introduced lottery legislation that he said could raise up to $210 million a year for education. During his 2002 gubernatorial campaign, he increased that total to $300 million.

By the time the measure actually went to a vote in 2004, the projections had been scaled to $150 million.

"Everybody focuses on the $300 million," Sund said, "but what they don't mention is that the Legislature drastically changed the governor's proposal."

Those changes included eliminating some games, Sund said, and mandating a 35 percent payout to education. Lottery officials say the lottery would raise more money without the mandate because it limits the prize pool and discourages participation.

In any event, the lottery has never reached the $150 million estimate. The payout to education was $69.3 million for the fiscal year ending June 30, down from $71.6 million the previous year. Proceeds are expected to fall again in the current fiscal year because of Arkansas' new lottery and the poor economy.

Total revenues to education since the lottery began in late 2005 are $279.2 million — about half of what they would have been had the 2004 estimate been accurate.

Indian gaming compacts, on the other hand, have exceeded expectations, growing by 30 percent this year and raising payments to education from all gambling sources to $188.3 million. That puts total gambling revenues in the ballpark envisioned when the lottery was proposed and before gaming compacts really entered the picture.

State Question 712, passed at the same time as two measures creating the Oklahoma Lottery, authorized the governor to negotiate compacts with the tribes. The compacts allowed three of the state's four race tracks to install electronic games, which in turn legalized electronic and some card games at tribal casinos.

Tribal gaming has contributed $249.7 million since the compacts took effect. That total includes $105 million in the fiscal year that ended June 30.

Race track revenues have totaled $43.8 million, with $14 million in FY 2009.

Jones says the state could have driven a harder bargain on the compacts, but Meacham points out that the primary purpose was quick relief for the horse racing industry.

In that respect, the compacts have been "awesome," said Oklahoma Quarter Horse Racing Association Executive Director Debbie Schrauf.

"It's done everything we expected," she said.


Randy Krehbiel 581-8365
randy.krehbiel@tulsaworld.com
By RANDY KREHBIEL World Staff Writer

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Thunder196, Tulsa (7/20/2009 4:11:22 AM)
Todd Lamb says, "the lottery has produced addicts, led to fraud and broken up families." I think that is a far stretch of the imagination. I would say the casinos would be more the culprit. Lamb needs to face the fact, gambling is here. Whether he likes it or not, it isn't going anywhere.
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Phil # 3, Yukon (7/20/2009 7:23:47 AM)
Complaining that the $500+million received 'isn't enough' strikes me as a comment coming from a spoiled brat.
1) Micromanagement of individuals lives is NOT a valid function of the system of government set up by the Constitution of the United States; 2) 'freedom' means allowing people to make their own mistakes without government control as long as the innocent aren't harmed; 3) those who choose to gamble, drink, smoke, drive, eat fast food, etc., are making their own decisions to live their life as they choose instead of as some busybody chooses.
Report Comment
Bville, (7/20/2009 7:46:39 AM)
This story is so full of it one wonders where to start.

Education receives over $3 BILLON. So, $60-$70 million a year is not a "significant sum." (That is also an opinion and judgment on Mr. K's part which doesn't belong in objective reporting. In fact, this whole story reads like an editorial.)

Do the math! There are over 500 school districts over which that sum must be spread. Ask some superintendents how big a bang they get from the lottery.

What do lottery officials want education's cut to be? 30%? 25%? So, to increase participation and revenue we need to cut education's take, right?

The Democratically-controlled legislature "drastically" changed the Democratic governor's lottery plan. Puh-leeeez.

The lottery has been a bust and everyone knows it. Everything the opponents have said has come true.
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Just a country boy, North Okmulgee County (7/20/2009 8:08:08 AM)
"the lottery has produced addicts, led to fraud and broken up families."
I always hear that as the reason against it but I never see any numbers to back it up. Has anyone actually done a study?
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Phil # 3, Yukon (7/20/2009 9:01:21 AM)
So again, no matter how much money is realized, it's just never enough, just like taxes. Even if the amount gained from the lotter is $1.00 per year, that's a dollar they wouldn't have otherwise and it only costs those who CHOOSE to play. It doesn't cost the naysayers a cent.
I can't belive there are so many who actually think the lotter has produced even ONE gambling addict. Casinos maybe, but the lottery? Get real.
I'll wait to see if anyone answers Just a country boy's question but won't hold my breath.
Divorce is very rarely ever a cause in any divorce action anywhere, especially Oklahoma. The main reason for divorce is that the government entices women to file by making it profitable. Some people are so clueless.
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Teddy Bear 1975, Eufaula (7/20/2009 9:11:33 AM)
I knew this lottery wouldnt work. I came from a state that had a lottery system. It fail the kids just like Oklahoma lottery is. That why I voted no. I even lost tips when I had a job that I could take tips because they wanted to spend their money on the lottery. Now I seeing kids going without nothing because of their parents spending their money on the lottery or going to the casinos.
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hardball, (7/20/2009 9:15:40 AM)
Casino gambling is obviously very very profitable for the tribes when you look at all the Millions + spent for new casinos and expansions going on. Not to mention 4 page full color advertising in the TW and constant expensive mailers in the mail about expensive car/cycle give-aways.

I don't go often but it seems as tho 50-60% of the people there don't have a pot or a window to throw it out of.
Report Comment
Bullhead, Nicut (7/20/2009 9:20:20 AM)
Well, if it's here to stay, I'll contribute my 10 bucks a week to the Oklahoma Lottery. I had not idea until 2 weeks ago that when I went in to get my tickets, I was buying the wrong ones. You have to say OK Lottery with the Sizzler. Oh well, now at least my money is staying in Oklahoma.
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ajohnb, Jenks (7/20/2009 9:24:51 AM)
Right On Yakimoto!!!!!!

They said anything just to get the lottery bill passed.

And now the Libs are saying, "it's more than what we would have had" is just classic!!
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Check It out, Tulsa (7/20/2009 9:43:48 AM)
The Question is: If we eliminate the lottery...will there be a shortfall in the education budget and who will pick up the tab? I thought all you conservatives who believe the lottery is a sin would be fine with it because it saves you same socialism taxes. Me...paying for your kids to be undereducated and molested and introduced to drugs and inducted into gangs.

The lottery is fun and Oklahoma education is a failure.
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Check It out, Tulsa (7/20/2009 9:45:18 AM)
People who would buy a lottery ticket when their kids have no shoes would not buy their kids shoes anyway.
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Daniel Day Simpson, Edmond (7/20/2009 9:47:32 AM)
Its all a necessary cycle. First you take primarily poor people who buy most of their tickets every other Friday. Not sure why they pick that particular day but I guess its a lucky day. Then you discount it that the money they spend on the lottery was diverted away from piano or tuba lessons. Now I would not mind missing the tuba lessons but missing piano would be a shame. Then you see the mom and dad waiting until 9:59:01 each lotto night for the results to appear. So the kids sit in anticipation while grabbing dad a brewsky from the fridge that works only enough to cool to 50 degrees (that's ok for bottled drinks). So the happy family sits in anticipation for that magical 3 numbers like 4,3,1 or 2,5,7. So the number is 3,3,9 and the family goes to bed hungry. The kids get up for school and make Always Save pop tarts and run to catch the bus. They go to the local school that is way underfunded because other people don't buy lottery tickets. They walk home and get robbed of their shoes because they live in a low class neighborhood. Their shoes wind up on an electric wire down the street. The kids return home on Friday in time to see mom pile out of her uninsured, unregistered vehicle with a pile of groceries that mainly say Always Save at least until it goes bankrupt from the Miami,Ok trucker crash lawsuit against Affiliated Foods. Meanwhile the family learns it won $15 on the lottery that night. Yea, they can guy 3 pizzas from Little Caesars on Saturday night! A celebration indeed!
Report Comment
ajohnb, Jenks (7/20/2009 9:56:49 AM)
Oh give it up people. The democratic legislature under Henry cut some of the state funding that was paying for education. That gave them more money to spend elsewhere because the lottery would make it up.

Education in Oklahoma has improved somewhat in the past 4.5 years since implementation but not $572 million worth.

It was another stream of funding for the legislature so they could have more to spend elsewhere.

If all of this money was "surplus" above what is approprited by the legislature, we would see more teachers, schools, and equipment.

$572 million would have bought a lot. If it were all available as excess.
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Check It out, Tulsa (7/20/2009 10:06:32 AM)
Daniel....what is wrong with Always Save? LOL
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Cricket, (7/20/2009 10:49:30 AM)
Neither Henry, his staff or the legislature like to mention that for every dollar they gave education from the lottery they took that much and more away to spend somewhere else. Many of the things that are funded by lottery are never fully funded. Example: They gave all the teachers a $3,000 pay raise funded by the lotter. They sent the money through the formula (which is complicated) and not all schools got the full $3,000 per teacher. Then because it was funded on Lottery porjections at the end of the year when the lottery didn't bring in what they projected there was a shortfall. And it goes on year after year. The way it's all divided up K-12 schools get 13 cents out of every lottery dollar. About 4-6 cents out of every dollar from casino money.
Henry touted himself as the Education Governor. He's been anything but. Education funding has never been worse. The teachers and staff are doing more for less and getting better results in spite of Henry and the legilature.
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Cricket, (7/20/2009 10:57:34 AM)
When you hear "education" gets x number of dollars people need to understand and ask how much is Common Ed (K-12) and how much is higher ed (college and universities).
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misfit missy, no thanks (7/20/2009 11:09:47 AM)
Who cares the children aint gettin none of it.Remoldeling isnt teaching children.New desks in the teachers lounge aint teachin.New carpet in the study lounge aint teachin.Sending my child home with raddedy books that they cant even read aint teachin.Hiring a no good teacher who looks good in tight jeans aint teachin.Giving my child a test the day after he comes back from being gone a week from being sick aint teachin.Now,that 3,000 raise is subatantial when it comes to the quality of learning that my child recieves,actually its too much.
Report Comment
Ayo, T-Town (7/20/2009 11:10:28 AM)
Good grief, DDS. Your post is so full of ca-ca it's stinks. You usually do better than that.

Most kids whose parents are at the bottom of the financial barrel don't have a pot to P in anyway. They're lucky to have Always Save poptarts. In fact, I came across a little girl a few weeks ago (a 5 y/o) who had eaten a pickle that day. That's all she had eaten by the late afternoon. Both parents were home, and both parents were on their computers blowing billows of smoke in that house. Poor kid. That's another story, but your post is ridiculous.

I've spent maybe 10 bucks on scratch tickets since the inception of the OK lottery. None paid so I didn't buy anymore. I'll occasionally buy a lotto ticket, but don't usually remember to do so. Now when I'm in KS I love to spend a few bucks on the scratch tickets because even with 10 bucks one of those tickets will pay. It's just for fun. OK lottery doesn't pay beans so I don't buy OK scratch tickets.

For those who continue to bellyache about the lottery I say just shut the whole ____ thing down. Do away with it. On the big ticket lotto's we can drive to KS and buy tickets. The remainder of the time it's just more money that will go into the tribal casinos. So, shut the ___ OK lottery down. Take away the few mil. that goes to state education since the repuklicans complain about it. Just shut it down and forget about it. It's not as if you guys will come up with any ideas.

Hey, while you're at it, track the divorce rate and see if the divorce rate drops in Okie homa. You think it will? What about spousal abuse? Superbowl Sunday....biggest day of the year for domestic abuse. Rah rah, take that ball to the goal line, but don't black my eye in the meantime. Let's see if the kiddos have shoes and Always Save poptarts once the lottery is gone.

My guess is we'll still be at the bottom of the barrel with education and the top of the barrel with divorce rates and spousal abuse. What'd ya think? Ironic that there's 5 churches within a 5 block radius of my house yet OK still ranks high on incarcerated women, serious domestic abuse (yeah, throwing chemicals on a poor lady and setting her on fire is pretty heinous; stupid hillbilly rednecks), and we'll still rank near the top for divorce. Sheez, I'm wrong. There are 6 churches within 5 blocks, and I might have forgotten to count a couple of them. I did! Make that 7 churches. Hmm, seems the more churches there are the higher the divorce rate.
Report Comment
ArkieLad, Russellville (7/20/2009 12:03:35 PM)
Here in Arkansas we only have one person that is speaking for the people. Trevor Drown the former Green Beret is Russelville isd lettin politicans in Little Rock that this is unacceptable.
Report Comment
Bliss, Okc (7/20/2009 12:04:13 PM)
Oh, what a surprise! The Okie christians has finally relented of the too much gambling which is a sin. If they force me totally away from tobacco they should get ready for the sky-high healthcare bills that will come to them from me. Kinda amusing, GOD do punish the sinners.
Report Comment
Bliss, Okc (7/20/2009 12:04:39 PM)
Not relented, REPENTED..
Report Comment
FS, Broken Arrow (7/20/2009 12:05:21 PM)
Teddy Bear 1975, Eufaula (7/20/2009 9:11:33 AM)
I knew this lottery wouldnt work. I came from a state that had a lottery system. It fail the kids just like Oklahoma lottery is. That why I voted no. I even lost tips when I had a job that I could take tips because they wanted to spend their money on the lottery. Now I seeing kids going without nothing because of their parents spending their money on the lottery or going to the casinos.
____________________

The lottery will work just fine for its intended purpose if the friggin' politicians can be kept away from the money.
Report Comment
FS, Broken Arrow (7/20/2009 12:07:24 PM)
I have to ask the same question, DDS - what's wrong with Always Save?

Are you afraid your neighbors might look in your trash and see what you buy?
Report Comment
Non-BUBBA, Tulsa (7/20/2009 12:17:10 PM)
Public schools would work if parents would spend as much time with the PTA as they do trying to get their precious brats into private or magnate schools. Get involved with your child, don't just park em in front of their xbox.
I'm thinking that those who buy lotto or go to the casino would find a way to gamble with or without either one. However, illegal gambling doesn't pay anything into the system.
Report Comment
Daniel Day Simpson, Edmond (7/20/2009 12:34:37 PM)
I just wanted to say what keeps people poor is cyclical. Someone in that family must break out. Buying piano lessons instead of lottery tickets could lead to Carnegie Hall. I just know that my parents stopped the lessons when they got to me. So by college, I had like 5 keyboards connected through Midi. Now I'm hoping to get a session on Atlantic City Midmer-Losh when its restored. It has like 33,000 pipes.
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