Walt Maddox Answers Questions On His Lottery Proposal

TUSCALOOSA, AL - The gubernatorial election in Alabama is a mere five weeks away, and while the voters in the state will apparently be denied the chance to see candidates Walt Maddox and Kay Ivey debate, it is no secret that they differ in their opinions of what Alabama's plan of action is moving forward. One of the key issues in the state for decades has been school funding, and each candidate has a different opinion on the matter.

Democratic candidate Walt Maddox, currently the mayor of Tuscaloosa, has proposed an education lottery, much like neighboring states Florida, Georgia, Tennessee (and now) Mississippi. In fact, Nevada and Utah are the only other states in the continental U.S. that do not have a lottery. However, a lottery has always had its critics - and those critics can point to very real instances where a lottery did not solve the problems it intended to solve. In some cases, it could be argued, the lottery presents another set of problems entirely.

Governor Kay Ivey said in August she is not opposed to allowing voters to decide on a lottery, but said she feels there are more pressing issues with education funding that do not involve a lottery. In essence, Ivey does not see an urgency in pushing a vote on a state lottery.

Maddox, however, has made the issue one of his primary campaign platforms. Dubbed the Alabama Education Lottery, proposes four new programs that address longstanding problems to be funded by the $300 million per year in lottery proceeds: (1) Scholarships for thousands of Alabama students for higher education and workforce development programs; (2) Expansion of the state’s nationally award‐winning Pre‐K program to all Alabama students –combining lottery funds with current pre‐K funding; (3) Creation of the Promise Program that will help relieve funding inequities between Alabama’s richest and poorest schools; (4) Creation of Community Innovation Grants to assist schools and regions in utilizing existing medical, mental health, and social support programs to solve problems that clearly affect the quality of education.

Alabama currently funds its public schools primarily through sales tax and local property taxes. And because the state has some of the lowest property taxes in the country, this often hurts public school budgets, and the state consistently lands in the bottom five among education funding, graduation rates and overall public education grades. But what many voters have wondered - and is perhaps why the previous attempt at a lottery by Gov. Don Siegelman in 1999 failed to pass - is how exactly will it work, and how does Alabama avoid the pitfalls seen in some other states.

One issue some states, such as Florida, have had is that the lottery replaced the traditional funding for schools, rather than augmenting it. Maddox said his proposal would not do this. "One key to a successful lottery is to avoid simply replacing traditional funding with lottery revenue," he said. Maddox said the addition of a lottery would not take away any existing funding measures already in place.

Maddox said his staff has conducted research on several lotteries and how they have worked in various states to try to find the best process for Alabama. "Starting with the legislative process and continuing to the authority or commission that will oversee the lottery, the details of the lottery will be worked out in a very

open and transparent process that assures the beneficiaries of the lottery are the people of Alabama," he said. "This will be a lottery that draws on lessons learned in other states and that considers all available data in order to obtain the lottery that’s best for Alabama."

The focus of Maddox’s research has been on the positive effects the lottery will have in keeping Alabama dollars at home. "There’s a rich body of evidence for Alabama to draw upon in working out the mechanics and logistics of the lottery, all to be conducted in an open and transparent process," he said.

And what about those who oppose the lottery as a "tax on the poor?" Maddox said he gets that concern. "However, when all factors are taken into account, the cost‐benefit evaluation still falls heavily in favor of a lottery," Maddox said. "Those living in poverty will be huge beneficiaries of all aspects of lottery revenues. College and workforce training that is currently cost prohibitive will be within reach – and the evidence is overwhelming that education and training are key to successful work careers. Access to pre‐K education that is so important for children, especially those in disadvantaged home situations, will become a reality for all. The Promise Program is designed specifically to lift up school districts that have low property tax values, which means they have low education funding. And poorer school districts have the greatest challenges in overcoming issues outside the classroom that affect learning, which the Community Innovation grants will address.

Given the political climate in recent decades, and the reluctance for many Alabamians to warm to the idea of a state lottery, one might consider an Alabama lottery to be a long shot. But Maddox disagrees. The legal impediment to be overcome is a state constitutional provision that prohibits lotteries, and therefore a constitutional amendment will be necessary. This requires the legislature to approve submitting the constitutional amendment to the voters for approval, which Maddox said is certain will happen with his leadership in the governor’s office. "The people of Alabama will have the direct, final word on

whether a lottery is adopted, and we believe they will vote yes," Maddox said.