Left In Alabama

Ron Sparks Talks about the Education Lottery, Gambling Tax and Alabama's Need for Revenue

by: mooncat

Tue Nov 24, 2009 at 12:10:58 PM CST


Ron SparksThis is the second post arising from an interview we conducted with Agriculture and Industries Commissioner Ron Sparks on Nov. 12 -- the first installment was Ron Sparks - Important to be Proactive and Protect the Citizens of Alabama.  Video and transcript excerpts are below the fold.

Proposals for an education lottery and increased gambling revenue have been central to Ron Sparks' argument to become our next governor, so I felt strongly that we should try to get an accurate sense of exactly what he wants to do in those areas.  The Lifestart Scholarship Lottery Sparks proposes would direct lottery proceeds to higher education.

Every high school student with a "C" or better average will be guaranteed a scholarship to a public Alabama University, two year college, or technical program of their choice.  All others who graduate or earn a GED will be guaranteed a technical or trade education.  

His gambling proposal would "regulate, tax and control" gambling in the state:

When I'm governor, we will establish a gaming commission that will regulate all gaming operations in the state.  We will tax gambling and use the proceeds to support Medicaid, the Special Education Trust Fund, and to create a special relief fund for agriculture. And we will let the voters decide whether or not they want casinos in their county.

Sparks believes Alabama will face even more budget difficulties in 2011 and beyond, after the federal stimulus funds run out, so he is looking for ways to bring in additional revenue.  Taxing and expanding gambling is the way he proposes to find that additional revenue stream.  Follow below the fold to hear Commissioner Sparks talk about the lottery and gambling revenue in his own words.

mooncat :: Ron Sparks Talks about the Education Lottery, Gambling Tax and Alabama's Need for Revenue

 

LIA:  Tell us about the lottery.  If we get the lottery, what's it going to do for the students that you're talking about sending to college?

Sparks: What I'd like to do is pass enabling legislation so that you would know exactly what the lottery is going to do.  What I'd like to do with the money that the lottery would bring in is give a student, if he gets a high school diploma or a GED, an opportunity to further his education.  Now, I don't know how much the lottery is going to bring in.  We could look at other states and see -- it's going to bring in more than we're getting today.  And I know I've been criticized for not giving a number but if I give a figure and it turns out to be wrong, I'll be criticized for that.  I want to make sure that we have some money.  That if you have a grandchild or you have a daughter or a son and that you are working for minimum wage, is that we give them some hope.  If they stay in school and stay out of trouble we're going to give them a scholarship.  It's not exactly like the HOPE Scholarship in Georgia.  They go A-B.  Well, I like A-B but I don't want to drop those children that may be a C or a D.  A "D" child in our schools, certainly we don't want to encourage that, but we've got to be realistic.  I don't want to drop nobody through the crack.

I want to give them a vocational, trade, union or non-union, apprentice training, working with the labor halls across Alabama.  I want to give people an opportunity to make a living. That's my vision.  Today we're spending millions of dollars in other states buying lottery tickets. In Alabama we're not.  I mean in Alabama we're not getting any money.  And I just want us to get our money

LIA:  So you're not proposing a full-ride scholarship, but you're proposing something, depending on the amount of money.

Sparks: I would hope that it would be a full ride.

LIA:  Kind of like getting financial aid 

Sparks:  Exactly.  I would hope that it would generate enough that it wold be a full ride.  But if it does not generate enough money, we should at least take care of a large portion of their education.  Look at the PACT program. People invested in that program, they said we're going to invest in 

LIA:  What I think I'm hearing is that there's just flat not enough money.  Which I think is what you've been saying was we need more revenue from somewhere.  So you're proposing a lottery that's going to go for scholarships and to tax the gambling that we already have or perhaps put it up to the people to legalize more gambling ...

Sparks: Absolutely.  Ohio just passed four casinos this week and they voted them down.  I don't think that I should be a person to tell you what you should and should not do.  I shouldn't tell you how much beer you should drink this weekend and I shouldn't tell you how many cigarettes you should smoke, and I shouldn't tell you that if you want to go gamble,that's your form of recreation, that you shouldn't do it.  But if you do it in Alabama, we ought to tax you acccordingly, we ought to tax you adequately.  That's been the problem in Alabama, is that we've had it, but we just haven't been taxing it. We've got the Poarch Creek Indians that are a business.  That is not a rogue organization. These are people that have done they best they can do with what they have been given by the federal government and they've found a way to make a profit.  They educate their children, they take care of their health care.  They do good things.  They want to be a part of society, they want to be part of state government. And they're willing to sign a compact. And it's not a secret, but they want to be able to compete with Biloxi.  Why shouldn't they compete with Biloxi?  Why shouldn't they?  I say they should.  Let the people decide whether they want to go to exit 57 or whether they want to go on to Biloxi.

You know, I'm going to take this a little step further.  The question always comes to Democrats, are you pro choice or are you pro-life? Personally I'm tired of that question. We've answered that question for the last 30 years and go on and do absolutely nothing about it.   Teen-age pregnancies are continuing to go up.  Killings in out neighborhoods -- in Montgomery yesterday, or this week, a young boy was shot down in cold blood.  Crystal meth is being made by the tons. We don't have a task force to stop that but we have one to stop bingo gambling. Where are our priorities?  Is it in our neighborhoods?  Is it in our young children?  Where are our priorities?  And as a governor I have a different set of priorities. And I would hope it would be a set of priorities that would move this state in a positive way.

And it's tough choices.  It's not easy to walk through the grocery store sometimes when you run up on a person that disagrees with you, whether it's gambling or whatever it may be.  I want to move this state forward.  I want to give every child an opportunity for an education.  I want to give every child an early childhood.  We've got to refocus that priority.  We've got to implement the 21st century framework so that our children can compete globally.  Those are things that I have a vision on and if they don't work, then people ought to vote me out.  I believe in the vote of the people.  The first time I ran for commisioner of Agriculture, I didn't have a dime in my bank account to run.  I ran on sweat, hard work, speaking and going to work during the day, campaigning at night, carrying a good message that eventually sold.  It allowed me to get elected and then I was able to do some things that otherwise I wasn't able to do.

LIA:  I think you mentioned the rate at which you would tax gambling.

Sparks: It would be comparable to what our neighboring states are doing.  I would not give some kind of a backdoor deal.  We're going to be fair.  We're going to look at what other states are doing and we're going to be equal to that.

LIA:  And the money would go to the education trust fund ...

Sparks: And Medicaid.

LIA:  and Medicaid. And that's it. That's the gambling tax money, the lottery would go for scholarships.

Sparks: Then casinos would be a whole new ballgame

LIA: Is that where the disaster relief for farmers would come in?

Sparks: Absolutely.  And the reason for that is this.  ...  I've lived through a number of natural disasters.  Matter of fact I'll give you an example.  You know the lady that President Obama just appointed Surgeon General?  I gave her $5000 for medicine to help the people, the patients of Bayou LaBatre because she was doing it for free.

LIA: How did you do that?

Sparks: I put a fundraiser together in Montgomery, Alabama. I brought my friends in from North Alabama called the group Alabama.  I brought Jamie Johnson in and I brought some songwriters in.  This happened within a 7 day period of time.  I raised $100,000.  I gave a third of it to the governor's office, I gave a third of it to the mayor's office and I kept a third of it.  And we've used that money to do these kind of projects. 

In summary:

  • The education lottery would not be a full ride scholarship, but would entitle every Alabama child to some scholarship either to college or to vocational training,
  • The tax on gambling we already have would provide additional funding for the Education Trust Fund and Medicaid
  • Revenue from the expansion of casino gambling would go toward the disaster relief fund for farmers. 
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Teen-age pregnancies are continuing to go up.  Killings in out neighborhoods -- in Montgomery yesterday, or this week, a young boy was shot down in cold blood.  Crystal meth is being made by the tons. We don't have a task force to stop that but we have one to stop bingo gambling. Where are our priorities?

Where indeed?

Unfortunately, there's more interest in bingo and gambling because that's where the big money is.  When inner-city kids get shot or a meth lab blows up, nobody much cares because the people involved aren't viewed as "important."

My hope is that we're able to have a state government that views every citizen as important and spends as much time worrying about education and bread and butter issues as it does on bingo, abortion, and prayer in schools.

Because the citizens of this state truly don't have a prayer of a better government and better opportunities unless we can clean up state government.



Never try to teach a pig to sing.  It wastes your time and annoys the pig.

Flesh it Out? (0.00 / 0)

 

I like what Sparks said about making sure the children of Alabama have the tools to compete globally.  I am glad that is not lost on either Davis or Sparks - - they have both been harping on this issue.

But I am concerned that Sparks failed to mention many specifics about his lottery plan when that is presumably the "bread and butter" of his campaign.  It's as if he hasn't attempted to develop any real policy to put behind his rhetoric.

He had no projection of how much revenue it would bring in - not even a ballpark answer .  The last time the lottery was a hot issue revenue projections for an AL were much lower than the programs we were talking about modeling ours after because "our surrounding states have already absorbed so much of the market" and thus was said that we had "missed our chance" on having a profitable lottery because of it. Regardless if this is why, we can be pretty certain that an AL lottery would not bring in as much revenue as say the GA lottery that funds the HOPE Scholarship Program and would therefore be a less useful tool than we would hope to have. Though we probably all are aware of this already.

Also, Sparks doesn't seem to have any idea what his scholarship proposal really looks like.  He says he'd like to provide full rides for students but it would depend on how much revenue it brings in - "maybe full maybe partial I don't know," - that's a pretty uncertain scope there.  

So if there isn't much revenue, and if he's giving scholarships to almost all students - any with an A to D average (PS - not much of an incentive for academic excellence there), would it not seem that the partial scholarships could be so low that they are not an incentive at all to go to college?  For example, if a kid is offered $250 to $1,000 but has no other scholarship, is he or she going to consider that enough financial incentive to go on to higher ed?  I.e. will this plan actually  help increase the number of Alabama students enrolled in institutions of higher education?  

And he didn't even mention the rate at which he would tax gambling, just that it would be comparable to other states.

I'm just surprised that he hasn't developed this idea more comprehensively since it's been almost the only issue he's been talking about, with the exception of criticizing Congressman Davis' healthcare vote (not to mention rapidly forwarding Jesse Jackson's inflammatory comment about race and healthcare to his email database).  

I think he needs to beef up on what he actually would want to do as Governor.  At this point it doesn't seem that he even knows.

 



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