Prop A suggests funding schools with a bigger casino tax

Wednesday, October 1, 2008

Among the issues on Missouri ballots in the Nov. 4 general election is Proposition A.

Proposition A would create a fund which would be used for increasing funding for elementary and secondary education, using revenues generated by casinos. The money deposited in the fund would be for new and additional funding for elementary and secondary education and not used to replace existing funding.

The proposition also limits the number of gambling licenses to those boats already built or under construction when the act goes into effect. It would allow for a license to be issued to a new gambling operation if an existing license is forfeited, surrendered, revoked, not renewed or expires.

The proposition also would eliminate the individual loss limit of $500 per day. The relevant part of the act would read: "The commission shall regulate the wagering structure for gambling excursions, provided that the commission shall not establish any regulations or policies that limit the amount of wagers, losses, or buy in amounts."

Gamblers would not have to provide any form of identification other than a valid state or federal photo identification or valid passport. The reasoning used by the writers of the proposition is that it would help protect patrons from invasion of privacy and the possibility of identity theft by not forcing patrons to provide fingerprints, retinal scans, biometric forms of identification, any type of patron tracking card, or other types of identification before allowing them to enter the area where gambling is being conducted or to make a wager.

The proposition would increase the casino gambling tax from 20 percent to 21 percent and require annual audits of the fund it creates. State governmental entities would receive an estimated $105.1 to $130 million annually for elementary and secondary education, and $5 to $7 million annually for higher education, early childhood development, veterans, and other programs. Local governmental entities receiving gambling boat tax and fee revenues will receive an estimated $18.1 to $19 million annually.

The St. Louis Regional Chamber and Growth Association, along with a handful of other St. Louis area organizaitions, has endorsed Proposition A, saying that, among other things, "it will generate more than $100 million per year in revenue for Missouri Schools." The measure, RCGA says, also will protect jobs "and help attract more tourists and revenues here by repealing Missouri's outdated $500 spending limit and bringing Missouri's casino regulations in line with neighboring states."

The Greater Kansas City Chamber of Commerce also made a similar endorsement

"Proposition A is important for our economy, especially in the Kansas City area, and it's important for our schools," Chamber President Pete Levi said. "Missouri's unemployment rate is the highest it has been since 1998. Schools throughout the state face increasing costs and budget cuts.

"Prop A will protect the 12,000 Missouri jobs that casinos provide and provide over $100 million per year in new funding for schools statewide -- without increasing any taxes on Missouri residents," Levi said.

But according to casinowatch.wordpress.com, some are against the measure, especially lifting the loss limit and easing identification procedures.

Some commenters on this site said they believe there are real problems with this, especially when it comes to problem or pathological gambling. Opponents also say there will be no mechanism for identifying those who have banned themselves from casinos via the Disassociated Persons List, a voluntary exclusion from Missouri riverboat gambling.

Opponents commenting on other Web sites, including the Columbia Tribune's blog site, say they see the measure as one that limits artificially limits competition for the existing casinos.

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