Casino Revenue & Education - Keep Our Promise

It appears that nowadays, even when there is bipartisan agreement, there is still disagreement. Just about everyone agrees that, as the law provides, a large portion of casino revenue should be spent on improving state education. However, everyone argues about the best way to do it.

Governor Hogan has proposed a law increasing spending on education by $4.4 billion over the next ten years by ensuring that all casino revenue the state gets (about $450 million annually) will be spent to improve schools. Of that money, $100 million each year would go to fund school construction.

Referendums, approved by Maryland voters in 2008 and 2012, dedicated 32% of casino revenue to an Education Trust Fund. However, there was no assurance that the casino revenue would not be used for other budget needs. And so, a steady drip, drip, drip began, where casino dollars meant for education were slowly siphoned for other budget needs. According to the Governor, his plan to create a lock box for casino dollars will keep the promise to dedicate casino dollars to education improvement.

Those who oppose the Governor's plan point out that any future governor's budget or General Assembly vote can change the lockbox plan. In addition, they emphasize that the casino money should not be used exclusively to boost the basic education funding formula, which determines most of the money the state provides to local school districts. $6.5 billion this year.

Opponents point out that the Kirwin Commission, appointed to study the state's current education spending formula and recommend changes, has already said that Maryland needs to spend

$2.6 billion more annually on public schools. In short, opponents say that the Governor's plan is too easy for future legislators or governors to change. All that is needed is a simple majority vote. In addition, they contend, the Governor's plan does not raise enough funds for significant school improvement.

Opponents favor a constitutional amendment instead of a statute to keep the promise of casino revenue dedicated to improvement of the state's education system. The amendment would phase in a requirement that the casino money for education should not be limited only to funding and beefing up the state's basic education formula. While any statutory plan, such as the Governor's, could be changed by a simple majority vote of the legislature, change to a constitutional amendment would need a three-fifths vote of the legislature.

Governor Hogan has declared his confidence that no future governor or legislature would dare violate the lock box. Looking at the state's past history of dipping into dedicated funds for various budgetary needs, I do not share the Governor's confidence. In order to balance the budget and meet spending needs, the state has never hesitated to use dedicated funds for all sorts of purposes. A constitutional amendment would make it much more difficult to violate the casino revenue lock box.

I'd be interested to know what you think?