Kay Ivey seeks pause on gambling debate, says facts needed
Kay Ivey said she wants to hear findings from a new work group before the gambling issue moves forward.
Corrections, gambling to be focus of legislative session
The state prison crisis is expected to take center stage in the legislative session.
Proposed lottery bill would fund pre-K, college scholarships
Last year the Legislative Service Agency estimated a paper lottery would produce $166.7 million annually.
J. Pepper Bryars: Time to stop daydreaming about a lottery
Lottery supporters were left saying “so close …” last week after the latest attempt to establish the game in Alabama collapsed under the weight of competing interests and power plays. It was reminiscent of the failed lotto player, successfully matching his numbers one-by-one until his hopes are dashed when that final digit proves ever elusive. But that’s what happens when you play a losing game. We’ve already heard the arguments against a lottery, from the financial risk of budgeting on a game of chance to the moral risk of a government enticing its citizens to play a game 99.9 percent of them will lose. I’ve written about it before, and the Alabama Policy Institute has a long history of opposing the lottery. But this time, the corrosive nature of gambling conspired to defeat itself.Here’s what happened. Vegas-style Casinos The lottery debate in recent years hasn’t centered on an actual lottery. That is, walking into a gas station and buying a paper ticket with a few numbers.No. There’s a strong pro-gambling lobby in Alabama that seeks to take advantage of any momentum behind a lottery proposal to include measures legalizing what’s known as Class III gaming – card tables, roulette wheels and slot machines. By including some specific language in a lottery bill, they could later artfully argue that expansion of gaming into Class III has already become law, thus giving them a green light to open casinos. And then there are those who have stakes in existing gaming facilities such as dog tracks and electronic bingo halls. They push hard to ensure that no legislation passes that could create competition. Point is, those who profit from the forms of gambling we have now, and who could profit from expanded forms in the future, see a simple lottery as a threat. They want to protect what they have, and then expand their offerings to keep existing customers and lure even more. Horse Trading Several lawmakers who favored a lottery in the past found themselves holding out for assurances that Alabama would adopt a key provision of Obamacare by expanding Medicaid, the insurance program for the poor and disabled. The issue here is that while the federal government pays for the first few years of the expansion, Alabama would eventually cough-up an increasingly higher percentage of an ever-growing expense. As the bill moved through the Legislature, it was reported that lawmakers were considering paying that additional cost with lottery revenue in a bid to collect more votes. Here’s the problem: the Legislative Service Agency estimated that the lottery would generate about $167 million a year in revenue after expenses and prizes were handed out, but estimates on the state’s share of expanding Medicaid range from $168 million to $250 million annually. So, we’d end up passing a lottery whose revenues could be swallowed up by Obamacare. How many politicians in Alabama want that etched into their electoral tombstone? Money Money Money Then there’s the question of how we’d spend whatever little is left. Some lawmakers wanted to send it all to the general fund. Others wanted some, if not most, to go toward education. And the teacher’s union, which remains a powerful force in Montgomery, wouldn’t budge. In the end, those who wanted more gambling, those who sought Medicaid expansion, and those aligned with the teacher’s union felt the status quo was preferable. Add them to traditional opponents of the lottery, and the bill died by a handful of votes. Let’s hope it stays that way. Alabama needs its leaders to focus their time on attainable solutions for problems that aren’t going away, and on opportunities that might if we refuse to focus. It’s about time they quit daydreaming about hitting the lottery. J. Pepper Bryars is a senior fellow at the Alabama Policy Institute and host of the 1819 podcast. Follow him on Twitter at @jpepperbryars.
Alabama lottery bill passes Senate
If you’ve ever heard of the saying, “If at first you don’t succeed: Try, try, try again,” then you have a basic understanding for the what’s going on in the Alabama Legislature this week. After years of trying and failing to pass a state lottery, on Thursday, the Alabama Senate moved one step closer to actually making a state lottery a reality. Following hours of debate, the full Alabama Senate narrowly passed a lottery bill, a proposed constitutional amendment, by a 21-12 vote on Thursday afternoon. Because the bill, sponsored by Atmore-Republican, Sen. Greg Albritton, is a proposed constitutional amendment three-fifths of the Senate, 21 of the 35 members, needed to vote in favor of the bill in order for it to pass. The legislation now moves to the Alabama House of Representatives. Should the legislation pass the House, the issue will move to the voters where they will have a chance to decide whether the state should have a state lottery. It’s been 20 years since Alabamians have had a chance to vote on a lottery. Alabama is one of six states without a lottery.
2019 could be the year Alabama lawmakers approve a state lottery
Despite being surrounded by lottery-playing states, Alabama continues to be one of only five states holding out on implementing a state lottery. But all of that could change in the 2019 legislative session. News broke this weekend that Alabama House Speaker Mac McCutcheon said a lottery will be on the 2019 legislative agenda. “I can say for sure that you’ll see a lottery bill in the first session coming up,” McCutcheon told WHNT News 19. “Now, I can’t determine what the vote’s going to be because I’ve got to see the bill.” But Monday, McCutcheon clarified those comments, saying they were out of context. “A reporter from station WHNT in Huntsville asked me last week to comment about the efforts that surrounding states are undertaking to implement lotteries, sports betting, and other forms of gambling,” explained McCutcheon. “I said the Legislature will likely see a lottery bill introduced in the first session of the quadrennium, but that response was based on a general feeling and no concrete knowledge on my part.” He continued, “As far as I am aware, no lottery bills have been drafted, pre-filed, or even discussed in any detail among members. And any effort to come forward with a lottery bill in the House would not be led by the leadership, which obviously includes me.” “I do feel that if any lottery bill were to have a chance of success, it should be defined as a traditional paper ticket lottery rather than an electronic lottery that could open the door to slot machines and other gambling devices,” he added. Gubernatorial support for a lottery If lawmakers were to pursue a lottery, neither gubernatorial candidate would likely stand in the way. Both Republican Kay Ivey and Democrat Walt Maddox seem to agree on a lottery for the state. “If the people want to vote that’s fine,” Ivey told WKRG back in August. “We have a robust economy, our budgets are strong we are able to do what we need to do so Alabama is at work and we’re working hard and is working.” Maddox, who unveiled his education lottery plan in February, continues to advocate for a lottery as a solution to the state’s ongoing budgetary woes. “The lottery has been a part of our platform since the very beginning and we certainly believe that 300 million dollars a year should be invested in college scholarships, Pre-K programs and to our schools so we can lift everyone up in the state of Alabama,” Maddox also told WKRG.
Mississippi lawmakers approve bill to create a state lottery
The Mississippi House reversed itself Tuesday and passed a bill to create a state lottery in the Bible Belt state where churches have long opposed it. The vote came during a special session, less than 24 hours after the House originally voted to kill the bill that the state’s Republican governor promises to sign into law. There was no debate Tuesday as a few representatives changed their votes from no to yes. Mississippi is one of six states without a lottery, and Gov. Phil Bryant had been pushing lawmakers for more than a year to create one. Supporters estimate a lottery could generate tens of millions of dollars annually, and Bryant says he wants the money to help pay for repair to crumbling highways and bridges. “This is a historic day in Mississippi,” Bryant said on Twitter. “Mississippi lawmakers rose to the occasion.” Supporters said it would take about a year to get a lottery up and running. The bill was opposed by politically powerful Baptist and Pentecostal groups and some people who called it a regressive tax on poor people in one of the poorest states in the U.S. The state’s influential casino lobby did not oppose a lottery but fought some lawmakers’ ultimately unsuccessful efforts to allow video lottery terminals in places like truck stops. Bryant pointed out that three of the four states bordering Mississippi have a lottery, and Mississippi residents drive to Louisiana, Arkansas and Tennessee to buy millions of dollars of tickets each year. The lottery bill passed the Senate Monday night but it failed initially in the House with 60 opposed and 54 in favor. The House subsequently passed the bill Tuesday with 58 in favor and 54 opposed. Tuesday was the fourth day of a special session that Bryant called, asking lawmakers to put millions more dollars into highways and bridges. More than 400 of Mississippi’s city and county bridges are closed because they are in bad repair. The state Department of Transportation says it needs at least $400 million more per year just to keep state highways from deteriorating. Supporters of a lottery estimate it could generate about $40 million for the state in the first year and $80 million in subsequent years. The Senate and House last week passed different versions of a lottery bill, and top lawmakers spent much of Monday working out the differences. The two chambers must agree on a single version before it can go to the governor. Republican Rep. Bill Denny said Tuesday that he has opposed attempts to establish a lottery for more than two decades, but he voted in favor this time because his constituents in Jackson want it. “Every time I go to the grocery store, ‘Bill, we need the lottery,’” Denny said. Democratic Rep. Greg Holloway of Hazlehurst voted against the bill initially and then for it Tuesday. “My people have contacted me,” Holloway said. “They want the lottery and I want them to have what they want.” Democratic Rep. Jeramey Anderson of Escatawpa voted for the bill Monday and against it Tuesday. He said he wanted a guarantee that a significant share of lottery money would go to education. “Killing the bill would have given us a better opportunity to negotiate,” said Anderson, who is running for a U.S. House seat. “Unfortunately, that didn’t happen. I do support the lottery, but I support public education, as well.” Republished with the permission of the Associated Press.
Kay Ivey, Walt Maddox talk lottery, Ten Commandments ballot measure
Governor Kay Ivey and Democratic gubernatorial candidate Walt Maddox both spoke at the Alabama Association of County Commissioners in Orange Beach on Wednesday, providing their views on a lottery in the state and the Ten Commandments Ballot measure on the ticket with them in the November 6 general election after their speeches. Ivey seems to believe the Ten Commandments ballot measure is a good thing.” Goodness knows we need to keep the good Lord and our God Almighty in the forefront of our lives (or) we’ll never succeed,” Ivey told AL.com. Maddox took a different stance saying he believes the measure is a political ploy. “Let’s make no mistake about this, it’s not about our values and our faith. It’s about a political ploy,” Maddox told AL.com. “It’s going to ultimately end up in us spending hundreds of thousands of taxpayers’ money.” “We have so many issues affecting everyday Alabamians and I think that is where our focus needs to be. What the politicians need to focus on are the problems in front of them,” he continued. Both candidates however, seem to agree on a lottery for the state. “If the people want to vote that’s fine,” Ivey told WKRG. “We have a robust economy, our budgets are strong we are able to do what we need to do so Alabama is at work and we’re working hard and is working.” Maddox, who unveiled his education lottery plan in February, stood by his previous stance. “The lottery has been a part of our platform since the very beginning and we certainly believe that 300 million dollars a year should be invested in college scholarships, Pre-K programs and to our schools so we can lift everyone up in the state of Alabama,” Maddox also told WKRG.
Senate committee narrowly approves Alabama lottery bill
A Senate committee narrowly approved a state lottery bill on Wednesday. The Senate Tourism and Marketing Committee okayed SB326, sponsored by Huntsville-Republican state Sen. Paul Sanford, by a 3-2 vote. The legislation proposes a constitutional amendment, which the voters would have to approve, that would allow Alabama to join multi-state lottery games only such as Powerball and Mega Millions. The legislative fiscal office estimates the lottery would generate $45 million annually. Alabama is one of only six states — Alaska, Hawaii, Mississippi, Nevada, and Utah — without a state lottery.
Daniel Sutter: Lessons from lottery jackpots
Did you win the recent Mega Millions or Powerball $400 million jackpots? If not, perhaps you are lucky, since big jackpots often make people miserable. The “lottery curse” and related research findings suggest that perhaps we should rethink our economic priorities. We all know what we would buy with some extra money, so a big jackpot presumably would be much better. Furthermore, the rich and famous look to be having lots of fun. So winning millions should be great, right? And yet many lottery winners end up destitute, in prison, or dead. Although the murders are tragic, I am more interested in the personal or financial wounds lottery winners experience. Cases like Mr. Jack Whittaker, who won $315 million in a West Virginia lottery in 2002. Four years later, Mr. Whittaker was bankrupt, and his daughter and granddaughter died of drug overdoses. In an interview, Mr. Whittaker said that he wished he had thrown the winning ticket away. Additional sad stories abound. Yet with lottery jackpots every week, there are thousands of winners. Dozens of sad stories do not demonstrate a pattern. Research on lottery winners reveals some interesting results. For example, many lottery winners do not go on wild spending sprees. Winners most commonly purchase houses and cars, and give significant amounts to their children and churches. Half or more of winners keep working, although this depends on the winner’s job. Winners with low paying, low skilled jobs are more likely to quit, while professionals with rewarding jobs frequently keep working. Surprisingly, however, lottery winners are not significantly happier than control groups. In happiness research, people answer a question of the form, “Overall, how happy are you in life?” on a numerical scale. Lottery riches do not raise these scores. Cross-country happiness research additionally finds that the richest nations are not the happiest. Prosperity and happiness are correlated, but at a reasonably high level of wealth, more money does not increase happiness. These findings suggest that perhaps economic growth should no longer be an important goal for our economy. To appreciate the current importance of growth, the lack of a year with three percent growth under President Obama has caused great concern. And the recent Republican tax reforms were sold as potentially spurring growth. Deemphasizing growth could have numerous implications for policy. High marginal income taxes on top earners are currently viewed as reducing work effort and slowing growth. But if some people pursuit raises at the expense of life balance and happiness, the high tax rate could increase happiness by making raises less rewarding. The “lottery curse” and happiness research do not, I think, justify a rethinking of economic policy. Psychologists recognize that people adjust their baseline after improvements. We quickly take smart phones and flat screen TVs for granted. We often fixate on that next thing we want. Answers to happiness surveys likely reflect the frustrations without adequate contemplation of the values. And even if new products quickly get taken for granted, going back to old ways may be quite unpleasant. Most of us recognize that money is just a means to an end, and that having more money does not automatically makes us happier. Money cannot tell us what will make us happy. And we appreciate the numerous tradeoffs between money and happiness. High paying jobs often involve lots of time, travel, and stress, which can impact an entire family. Many people pass up a high salary for a job or a lifestyle of their choosing. A free economy and society enables human happiness. Economic freedom allows us to make decisions about things that matter. It is the freedom to earn a living in whatever field we choose, to start a business, live where we want, and even make less money. It is not a coincidence that the Declaration of Independence included the “pursuit of happiness” among our fundamental liberties. No one or thing can give us happiness, even Powerball. Perhaps lottery jackpots, though, can help us relearn a lesson America’s Founders knew long ago. ••• Daniel Sutter is the Charles G. Koch Professor of Economics with the Manuel H. Johnson Center for Political Economy at Troy University and host of Econversations on TrojanVision. The opinions expressed in this column are the author’s and do not necessarily reflect the views of Troy University.
When will Robert Bentley, Legislature answer ‘the call,’ put lottery on Nov. ballot?
During the past couple of months, everywhere I go people continually ask me why in the world the Legislature could not simply put the issue of whether they could vote for or against a lottery on the November ballot. The fact that this inquiry has lingered for this long tells me that folks are upset about this travesty. They are mad at the Legislature. However, the blame lies with the governor. Indeed, the Legislature met in a special session to address this issue of whether or not to put the lottery proposal on the ballot and let you vote on this lingering issue. Most polls indicate that the good people of Alabama would vote in favor of it, provided there are no sweetheart deals, hidden chicanery or favoritism in the proposal. Most Republicans would vote in favor of it because they are tired of their money being sent to Georgia, Florida and Tennessee to help their schools, roads and indigents rather than keep their money at home helping Alabamians. Folks in the Heart of Dixie are going to buy lottery tickets. They are just going to buy them in our surrounding states. It was noticeable that a good many of the legislators, who represent border counties, voted against the referendum. This is similar to bygone days when most of the dry counties in the state continued to vote dry due to an ironic coalition between the bootleggers and preachers. I seriously think that some of these border counties are reaping a bonanza in gas tax revenue from the throng of cars headed to border states to buy lottery tickets. They say that cars are backed up for miles around every state border when these super Powerball extravaganzas occur. Well, to answer your questions, it is difficult to pass anything in a congress or Legislature. That is why they have the old adage, “It takes an act of Congress to get something accomplished.” In Alabama, extraordinary special sessions of the Legislature are the way to go to get something accomplished if you are the governor. The Legislature has to address what the governor calls the legislature into session for, it is called “the call.” George Wallace was a master of using special sessions to get what he wanted done. He would call them repeatedly. However, before he called them, he would have his ducks in a row. He would have called you on the phone, had you visit with him one on one in his office at the capitol or at the governor’s mansion. He would know what the vote count was on his issue before he called a special session. He would not waste taxpayer money on a session without any accomplishment. Well folks, our good ole doctor Governor Bentley ain’t George Wallace. Ole Bentley did waste money that the state General Fund does not have to squander. That is why the special session was called. It was designed to help bolster the beleaguered General Fund. Bentley failed because he did just the opposite of Wallace. He did not call any legislators. They heard about the session on the news. Even though Gov. Bentley shoulders the blame for failure to at least put the lottery issue on the ballot, he has shown profound leadership with his creation of an advisory council on gambling. This is a prudent, rational, and unbiased approach to the entire gambling issue. Bentley is right when he says the issue of gambling in the state is something that will never end unless we come together and figure out a way for the people of this state to have a say in its resolution. This advisory panel has done a thorough job of studying this issue. Jim Byard and Clinton Carter, two bright stars in Bentley’s cabinet, have led the comprehensive study of gaming. The commission looked at what other states are doing to reap revenue from gambling that already exists to get a clearer picture of what a lottery would generate for state coffers. They have looked at all gambits of gambling in the state, not just the lottery. They are designing a long-term approach to present to the legislature. The administration has extended the panel’s deadline to report to the legislature from January 31 to June, probably because they do not want to deal with gambling during this legislative session. The final solution must allow Alabamians to vote on this issue. See you next week. ___ Steve Flowers is Alabama’s leading political columnist. His weekly column appears in over 60 Alabama newspapers. He served 16 years in the state legislature. Steve may be reached at www.steveflowers.us.
Will Ainsworth: my thoughts on the lottery legislation
Here are my thoughts on the lottery legislation from this past week that is now dead. The Alabama Legislature is currently meeting in a special session to consider a constitutional amendment that would create a state lottery with proceeds being used to fund Medicaid, other state agencies, and public education. If it had been approved by lawmakers, the amendment would have gone before the public for ratification in a special election later this year. The amendment that was presented to the House, however, was so fatally flawed and lacking in detail that I could not, in good conscience, allow it to be enacted, so I opposed its passage. Alabama currently earmarks roughly 91 percent of the tax dollars you send to Montgomery for specific purposes, which is, by far, the highest percentage in the nation. The next highest state is Michigan, which earmarks 60 percent of its revenues. Earmarking handcuffs our ability to effectively manage state dollars, and it prevents us from directing funding to the most pressing priority or the most serious need. Without the ability to shift dollars as needed, like you do in your family budget, government cannot be run efficiently. Even worse, this amendment places earmarks upon earmarks by directing dollars first to the General Fund budget and then further mandating that at least $100 million raised annually will be given directly to Medicaid. Creating a guaranteed slush fund for Medicaid removes any incentive for the agency to cut spending or implement cost-cutting measures, and it prevents those dollars from being used for other General Fund necessities. Another concern is that the amendment creates an appointed commission whose members would be tasked with overseeing lottery operations, and it prohibits the commission from employing a lobbyist, which is a good thing. The problem comes with the companies that supply the lottery machines, print the tickets, or even run the lottery. If subcontracted by the commission, they would, however, be allowed to employ lobbyists, which violates the very intent of the prohibition. I have sworn to fight against this kind of Montgomery double-dealing and political sleight-of-hand. As public officials, we must be truthful with the citizens of our state, and this massive loophole is an insult to the people we represent. Finally, and perhaps most importantly, we were provided with only half of the information that we need to consider. Enacting a lottery requires two components — a constitutional amendment allowing its creation, and enabling legislation that spells out, in detail, the nuts and bolts of how it will operate. The enabling bill would define what games could be offered, how vendors would be chosen, the odds of winning certain games, and others. We only considered the constitutional amendment and we would have to consider the enabling legislation in next year’s regular session, once the lottery has been approved. Approving that kind of blank check amendment is a recipe for mismanagement, special interest domination, and possible corruption. It is much like the proponents are trying to sell you an expensive, high-end sports car, and they highlights its sleek looks and its lustrous paint job, but they won’t let you open the hood to make sure the engine is mechanically sound. They won’t let you take a test drive to determine how it runs. They won’t even allow you to check the tires to make sure they’re not bald. Anyone who would purchase that sports car and make a long-term commitment on looks alone would be foolish, and anyone who would approve a lottery without first getting to take a look at the “engine” in its enabling legislation would be making a similar mistake. Other issues, such as the salary that lottery commission members are paid and how they will be held accountable; the administrative costs of the lottery and how they will be determined; and the possibility of opening the door to other forms of gambling, must also be defined. Until the Legislature is presented with a more thorough lottery blueprint and strict safeguards against abuse, mismanagement, and corruption are put in place, I will not consider voting for the constitutional amendment. This post is used with permission after first appearing on Rep. Ainsworth’s Facebook page. ••• Will Ainsworth represents Alabama House District 27.
