Schools split on gambling proposal

CONSTANTINE -- One St. Joseph County school superintendent calls it an "interesting dilemma," while another school board has urged its voters to say no to Tuesday's statewide ballot proposition that would limit gambling expansion in Michigan. The link between education and gambling may seem convoluted. But the Constantine Board of Education, St. Joseph County Intermediate School Superintendent Jay Newman and a host of education groups statewide say they fear Proposal 1 could slash the payoff Michigan's public schools get from state lottery funds. "It's an interesting dilemma because many of us actually are not in favor of using gambling to fund schools," said Newman, referring to lottery profits that are used to help fund Michigan's school aid budget. "But there is a serious concern about the impact of this proposal. Will it cut into the revenues for education from the state lottery?" If passed, Proposition 1 will require voter approval for most new gambling authorized by law after Jan. 1, 2004. While it would not apply to current or future Indian casinos, it would require voters to OK any new state lottery games, table games or "player-operated mechanical or electronic devices." Not only will statewide voter approval be required, but passage also must come in the city or township where the gambling will take place. The Constantine Board of Education passed a resolution earlier this month urging district voters to say no on Proposal 1. Norman Taylor, Constantine superintendent, said resolution language has been circulated by statewide school administrators' groups. The Constantine resolution claims Proposal 1 could cut state lottery profits and that "would further reduce state revenues to schools" and "limit the Michigan Lottery's ability to meet the needs of its customers." "The Constantine School Board opposes Proposal 1 and encourages all citizens interested in the education of Michigan children to do the same," the resolution said. Proposal 1 is making for some strange political bedfellows, including groups on both sides with vested financial interests. Supporters include gambling opponents and Detroit and American Indian casino owners who would like to limit future competition. Besides education interests, opponents have included race track operators who want to add slot machines to bolster their sagging revenues. Democrat Gov. Jennifer Granholm and Republican House Speaker Rick Johnson have buried the partisan hatchet on the issue, both calling for Proposal 1's defeat, citing its affect on education revenues. The state's Lottery Bureau has warned that Michigan could be forced out of the multi-state Mega-Millions game if Proposal 1 passes. Gary Peters, lottery director, has said courts will likely have to interpret the issue if it's approved to determine if the lottery can introduce new or altered lottery games without voters' approval. Peters has estimated the lottery could suffer a $602 million revenue loss over three years. The proposal also could tie the state's hands in plans that may include installing self-service terminals at retail sites, he said. Proposal 1 supporters deny claims that the Let Voters Decide ballot initiative will interfere with lottery revenue to the school aid fund.