In apocalyptic terms, Michigan school officials described on Monday a proposed constitutional amendment to limit gambling, predicting it would lead to drastic declines in state lottery money for the classroom.
Their concerns were echoed by Gov. Jennifer Granholm, who had remained relatively quiet about the plan but will soon appear in TV ads denouncing Proposal 1 as a threat to state lottery money for schools.
Representatives of the coalition of Detroit and Indian casino operators and gambling opponents who support the measure called the fears groundless and accused the education lobby of using scare tactics.
Proposal 1 is an attempt to limit the expansion of gambling in Michigan by requiring voter approval for most new potential gambling venues, including several categories of lottery games.
The lottery currently contributes about $600 million a year to the state School Aid Fund for public schools -- about $402 per pupil. The general fund and school aid fund are separate within the state budget. By law, lottery profits are placed in the school aid fund, which includes $12.5 billion this fiscal year -- most of it from sales tax and income tax revenues. Michigan Federation of Teachers President David Hecker said passage of Proposal 1 is "very likely to take millions of dollars away from our children." Hecker was joined by representatives from a half-dozen other school lobbyists at a Capitol news conference. Members of the coalition said they will seek resolutions opposing Proposal 1 from school boards around the state and begin an intense campaign to defeat it.
The "No on 1" group also has raised enough money for a TV advertising campaign to begin this week, said spokeswoman Kelly Rossman-McKinney. An ad featuring Granholm that was produced Friday will be part of the campaign, the governor's office said.
Proponents of 1, with heavy financial backing from casino owners and in alliance with conservative opponents of gambling, have been spreading their message on the airwaves for several weeks. They say requiring voter approval of gaming expansion is a reasonable restraint on an activity many believe is too widespread.
The precise effect of Proposal 1's approval on the state lottery is impossible to measure, however.
Consultants working for the Yes vote coalition said Monday that only certain games -- table games like craps or blackjack and player-operated electronic slot machines -- would be subject to voter approval.
Gary Wolfram, an economist and former deputy state treasurer, said it's not true that a drop in lottery revenue -- for whatever reason -- would automatically result in a drop in public school funding.
He said lottery profits account for only about 5 percent of all school funding, and that the Legislature could make up any reductions with money from the state general fund.
Wolfram said it's a false assumption that now allowing lottery slot machines without a public vote will spell doom for school finance.
"They can have lots of new games. All they need to do is be very clever. And they have been," Wolfram said.
www.freep.com
Their concerns were echoed by Gov. Jennifer Granholm, who had remained relatively quiet about the plan but will soon appear in TV ads denouncing Proposal 1 as a threat to state lottery money for schools.
Representatives of the coalition of Detroit and Indian casino operators and gambling opponents who support the measure called the fears groundless and accused the education lobby of using scare tactics.
Proposal 1 is an attempt to limit the expansion of gambling in Michigan by requiring voter approval for most new potential gambling venues, including several categories of lottery games.
The lottery currently contributes about $600 million a year to the state School Aid Fund for public schools -- about $402 per pupil. The general fund and school aid fund are separate within the state budget. By law, lottery profits are placed in the school aid fund, which includes $12.5 billion this fiscal year -- most of it from sales tax and income tax revenues. Michigan Federation of Teachers President David Hecker said passage of Proposal 1 is "very likely to take millions of dollars away from our children." Hecker was joined by representatives from a half-dozen other school lobbyists at a Capitol news conference. Members of the coalition said they will seek resolutions opposing Proposal 1 from school boards around the state and begin an intense campaign to defeat it.
The "No on 1" group also has raised enough money for a TV advertising campaign to begin this week, said spokeswoman Kelly Rossman-McKinney. An ad featuring Granholm that was produced Friday will be part of the campaign, the governor's office said.
Proponents of 1, with heavy financial backing from casino owners and in alliance with conservative opponents of gambling, have been spreading their message on the airwaves for several weeks. They say requiring voter approval of gaming expansion is a reasonable restraint on an activity many believe is too widespread.
The precise effect of Proposal 1's approval on the state lottery is impossible to measure, however.
Consultants working for the Yes vote coalition said Monday that only certain games -- table games like craps or blackjack and player-operated electronic slot machines -- would be subject to voter approval.
Gary Wolfram, an economist and former deputy state treasurer, said it's not true that a drop in lottery revenue -- for whatever reason -- would automatically result in a drop in public school funding.
He said lottery profits account for only about 5 percent of all school funding, and that the Legislature could make up any reductions with money from the state general fund.
Wolfram said it's a false assumption that now allowing lottery slot machines without a public vote will spell doom for school finance.
"They can have lots of new games. All they need to do is be very clever. And they have been," Wolfram said.
www.freep.com
