Gambling with Destiny: Rethinking NYS Funding Priorities
by State Senator Liz Krueger

Over the past several months, the Campaign for Fiscal Equity (CFE) and the Alliance for Quality Education (AQE) have been calling on the state legislature and Governor Pataki to provide a $2 billion down payment in response to the state court of appeals mandate that education funding inequities be remedied. In response, the Governor has dedicated $325 million of revenues generated from “video lottery terminals” to increase education funds. In so doing, the Governor continues to disregard the rights of our children. Banking on state sanctioned lottery terminals to fund public education is yet another example of misguided priorities and bad public policy. We have learned from past experience that revenues generated from the lottery have simply replaced existing state education dollars, despite promises to increase funding. There is no reason to believe Albany will discontinue this game of smoke and mirrors with the video lottery terminals, and there is also no guarantee that the VLT’s, many of which have yet to even be installed, will generate the promised revenue. Further, the lottery preys on lower income earners, misleading the public with a promised “dollar for a dream.” The lottery and VLT’s will not help many New Yorkers escape poverty, but a sound basic education and access to higher education—can. Yet the Governor again proposes cutting Tuition Assistance Program (TAP) funding in this years budget, decreasing access to higher education for low-income families. Education is a proven route out of poverty, and far more realistic than winning lottery games. Yet ultimately it is lower-income people who will play the lotto in hopes of escaping poverty, paying for the states failure to adequately fund public education through sound fiscal policies.

Various advocates and lawmakers continue to propose alternative revenue streams and progressive tax policy reforms, such as closing corporate tax loopholes and a targeted personal income tax surcharge, rather than rely on regressive taxes and gimmicks that cannot guarantee needed revenue. This is an incredibly complicated problem demanding a real and lasting solution, yet our governor proposes to respond to the lawsuit with hypothetical revenues that may be generated from video lottery terminals that prey on poor people. I have also been very disturbed by proposed bonds and tax breaks totaling nearly $2 billion for “Destiny USA”, a mega-mall project planned for Syracuse. This huge giveaway to private developers by the state is cause for serious concern on many levels, but consider the mind-boggling irony of the CFE decision and advocates demand for $2billion, as the state stands poised to give over $2 billion for a project that has no proven nor detailed plan to create jobs nor strengthen the economy.

That the state has refused our city schoolchildren their fair share of education funds until being forced to act by the courts speaks volumes to the overall lack of government commitment to public education. The proposed solution to rely on gambling and gimmicks and the failure to directly appropriate and guarantee education funds cannot be accepted as a solution. I would argue giving $2 billion as a down payment for CFE and looking to progressive tax reforms to generate revenue is infinitely wiser than giving $2 billion to private developers for a conceptual mega-mall and, consequently, gambling with our children’s future.#