In the News - October 2008
Creation of state lotteries to support higher education subject to ballot vote
LITTLE ROCK - When Arkansans head to the polls in November, one issue they
will vote on concerns creating state lotteries to support higher education.
The ballot item would amend the state constitution to establish state
lotteries to fund scholarships and grants for Arkansas residents enrolled in
two- and four-year colleges and universities located in the state.
The initiative specifically prohibits lotteries and the sale of lottery
tickets except as provided in the proposed amendment, meaning no other entity
other than the state of Arkansas would have authority to run a lottery
operation. If the amendment passes, the Arkansas General Assembly would be
responsible for developing a framework of state laws to establish, operate and
regulate state lotteries.
Supporters say Arkansans have historically purchased millions of dollars in
lottery tickets in surrounding states and establishing a lottery could keep that
money in Arkansas. Supporters also say the state loses revenue from gasoline and
convenience store sales. Finally, supporters note that Arkansas ranks 49th
of the 50 states in the percentage of adults with a bachelor’s degree and say
that lottery-generated proceeds would exceed the total institutional scholarship
aid provided by public colleges and universities in Arkansas in 2007 and
quadruple the tuition assistance award by the state-funded Academic Challenge
and Governor’s Scholars Scholarships.
Opponents say lotteries constitute a regressive tax. A regressive tax
collects funds that discriminate against those who come from low-income
backgrounds. Opponents refer to studies showing lottery sales are often
disproportionally concentrated in low-income and minority communities. Opponents
also say the measure would drain millions of dollars from the state’s economy.
Additionally, opponents say that Arkansas does not have enough jobs for the
current number of college graduates and that increasing the number of college
graduates would not change this circumstance. Finally, opponents say the
proposed amendment doesn’t define lottery and that this could serve as a gateway
to casino gambling.
Voting for the proposed amendment would amend the state constitution to allow
the creation of state lotteries to fund college scholarships and grants. If the
amendment doesn’t receive a majority of the votes, the state constitution won’t
be amended and Arkansas will not implement state lotteries.
Visit http://ppc.uaex.edu/ballot,
or contact your county agent to learn more about the ballot issues. The
information presented above is part of non-biased educational materials
developed by the University of Arkansas Division of Agriculture’s Public Policy
Center.
EDS: The Division of Agriculture is part of the University of Arkansas
System, the largest of Arkansas' higher education institutions. The University
of Arkansas System is poised to be a direct beneficiary of lotteries based
scholarship proceeds should this amendment pass. In the interest of full
disclosure we are obligated to make public this potential conflict of interest.
October 3, 2008
Elizabeth Fortune
Extension Communications Specialist
U of A Division of Agriculture
Cooperative Extension Service
(501) 671-2120
efortune@uaex.edu
Media Contact: Lamar James
Extension Communications Specialist
U of A Division of Agriculture
Cooperative Extension Service
(501) 671-2187 or (501) 753-0207
ljames@uaex.edu
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