Dogtown Wire

Is this the best you can do PDF Print E-mail
Written by DJ Smith   
Monday, 07 July 2008

Lt. Bill Halter had until today to submit the number of signatures needed for his proposed constitutional amendment ballot initiative that will give Arkansans the chance to vote whether they want a state lottery.

Halter’s office said he submitted 138,615 signatures Thursday that state officials will have to verify that at least 77,486 – the magic number – of those signatures came from registered voters.

Halter is gambling that voters want the lottery here that he said will be used to give Arkansas students scholarships for in-state 2- and 4-year colleges.

He said the lottery scholarships will help solve the problems Arkansas has with being the 49th ranked state for median income and 49th ranked state in the country for 4-year college degrees.

Tackling the first ranking; to quote the Clinton presidential administration Halter worked for buzz phrase from the 1992 election campaign, “It’s the economy stupid.”

We’re not 49th in median income because we don’t have college degrees, we are 49th because we don’t have good paying jobs in the state.

Remember, median income means the average. You have to add in the Wal-Mart Waltons who live here – worth billions – then everybody else, including the lowest paid W2 holder in the state who doesn’t show up on a Google list the way a Walton does.

If we had blue collar jobs that paid the kind of money a family could live on, and possible prosper on, the average would go up. Prosper would include helping their kids pay for college.

It caused me no small amount of consternation when the Arkansas AFL-CIO added their support to the lottery ballot. This support went so far as the organization saying they would ask union members volunteer to sign up registered voters. That they would take away from the (non-union) men and women who were trying to make a buck as paid employees of the Nevada-based signature-gathering firm National Voter Outreach Inc. seemed a bit scabby to me.

In the March 21 Russellville Courier he said, “In my experience, there is no way to advance income in our state without improving higher education.”

An October 2007 123-month report on manufacturing jobs by Manufacturer’s News showed that Arkansas – like so many other states – had seen a 2.8 percent decrease in manufacturing (and usually better paying) jobs in 2007.

A trend it said had continued with the loss of 41,000 manufacturing jobs since August 2001 which has probably lowered our sate income average.

Of course, if more Arkansans were to get college degrees they would receive the higher pay awarded those who spend ungodly amounts of money on their secondary education.

But, without companies to work for here the college scholarship lottery graduates in Arkansas’ lottery players would basically be subsidizing companies in other states who will open their arms to hire them. And we would lose well paid, college educated Arkansans who wouldn’t play our lottery to support the next students.

And no one can question that our educational system – in its entirety, not just college – is in need of help.

But, the big question is why the Lt. Governor is simply rehashing old ideas instead of spending his time looking for new ideas that could do the entire state some good.

From Halter’s website: “Bill Halter is focused on education and jobs. He believes Arkansas must develop a skilled work force capable of meeting the challenges of a 21st century economy.”

He studied economics and politics as a National Merit Scholar and Harry S. Truman Scholar at Stanford University in Palo Alto, California, and received a Masters of Philosophy as a Rhodes Scholar at Oxford in England.

At McKinsey & Co. that Halter worked for before the election, its website’s “About Us” said. “Our clients need new insight. We ask our people to bring their best thinking to our clients.”

If a lottery plan is considered new insight and bringing the best thinking then I am sorely disappointed. This is neither, but rather a rehash of others’ ideas, and you dismiss the many studies which show a lottery to be a regressive tax on the poor. There isn’t enough space to argue that point.

From his own website he said, “Bill first joined the Clinton administration in 1993, working to help trim bureaucratic waste with the Office of Management and Budget (OMB) in the Executive Office of the President. During his six years at OMB, the government's $290 billion budget deficit transformed to a $125 billion surplus. The United States enjoyed its first balanced budget in 40 years.”

How about tearing into the Arkansas budget and find the money for scholarships by cutting waste, or would that be a bit too close to home. It is far easier to clamp down on the federal bureaucracy as an appointee, but it isn’t a stretch that you might want to run for governor and stepping on local political toes might not fit into a possible march to the mansion.

You have the time since your website defines, “The official duties of Arkansas' Lieutenant Governor as described by the Arkansas Constitution are to preside over the Senate with a tie-breaking vote, to serve as governor when the governor is out of state, and to serve as governor if the governor is impeached, removed from office, dies or is otherwise unable to discharge the office's duties.”

The legislation meets for 60 days every two years unless it votes to extend this period or the Governor calls a special meeting. I’m not an economics major but simple math shows a whole bunch of weeks over two years to allow you and your staff of four to delve into new ideas rather than phoning in old ones.

Could we use more college graduates? You bet, but our K-12 public educational system is in shambles and would be better served with additional funds spend on them by lottery profits as many states do. New businesses looking to move do look for nearby colleges and universities they can hire from or have research and development programs they can donate to.

They also look for healthy K-12 public school systems for their manufacturing employees to come from and their employees’ children to go to.

The Diplomas Count 2008: School to College showed Arkansas is ranked 24th in the country for high school graduates with a 73.2 of students getting a diploma. Only Missouri beat us on this list as the top southern state with a rate of 76.5.

Lt. Governors more than not want to move into the big mansion so just remember what it is Halter decided he would use his obvious intelligence and time on when he was in the second highest office in the state.

He recently said the lottery here would stem the flow of “millions of dollars” that now leaves the state as residents head over our borders to buy tickets. What’s next; a state tax on Arkansans to stem the flow of money they would spend when they choose to leave the state for vacation?

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feed14 Comments
Gunner
July 07, 2008

Well, first of all, don't confuse "income" with "wealth". The "Walton Millionaires" that you speak of almost certainly have VERY little Arkansas "income", if any. I would be willing to bet that they are all legal residents of a state with no personal income tax (Texas or Florida), and are probably living in houses that are "owned" and "operated" by a corporation or a non-profit foundation, not by them in their personal name.

However, I agree that a lack of jobs is a problem. I recently lost my best employee because her husband, who has a Chemistry degree, wasn't able to find a full-time job in the area. They ended up in the DFW area, and I ended up having to hire someone new (and dealing with training them, the loss of productivity, etc. etc.)

I don't personally have a problem with a lottery. Most states have them and I agree that Arkansas is losing tax revenue by not having one. Yes, it is a regressive tax on the poor. However, they are already paying it, just not to Arkansas.

You can argue that the state shouldn't be complicit in this, but at some point, the state's responsibility to protect people from themselves comes to an end.

In my mind, a lottery is that point.

Roi Polloi
July 07, 2008

With participation being voluntary, why do you describe lotteries as a "tax"?

TeeMax
July 07, 2008

The lottery is a tax.
It's a tax on people who are bad at math.

pygface
July 07, 2008

Actually, median means middle. Mean is average and mode is most commonly occurring value.

BTW - the "Terms of Usage" are BS

CTYankee
July 07, 2008

What has been Wal-Mart's experience with lotteries? They must operate stores in every state that has a lottery, in these states doe Wal-Mart currently sell the lottery tickets? Have they done so in the past? If they have quit selling lottery tickets, why did they do so?

beckilynb
July 08, 2008

To say that the poor are already paying the tax is to say that they are driving out of state to buy lottery tickets. In my book, if a person has $4.00/gallon gas money to drive out of state to buy lottery tickets then that takes them out of the "poor" range of income level. I actually know poor people and trust me, they don't drive out of state for lottery tickets.

Complicity aside, building our education on the backs of people who can't afford it is just wrong. Expecting them not to buy the tickets is like asking an alcoholic not to drink that shot of whiskey you just put in front of him. Is it his fault for drinking it? Or yours for setting it there KNOWING he has a problem? What about our responsibility to our fellow man?

nlrlablover
July 08, 2008

See Texarkana.

I buy a couple of lottery tickets every time I visit. I may win $5 or $20, or even the chance to win $1 meeeelion dollars. However, I have the choice to buy that lottery ticket. The money goes towards a good cause (I haven't done my research here, but I am sure it goes towards public something or it wouldn't exist). I don't understand the gripe towards the lottery. If you don't support it, don't buy a ticket. But don't use the BS excuse that it is a tax on the poor. They also have the option to purchase one should they want to.

I think the religious right is throwing punches disguised as the savior of the public. These groups have already supressed Arkansans and the US enough. FOLKS, wake up, this is for public education scholarships.

Additionally, I think it is arrogant to categorize the "poor" as the gambleholics and wanting to spend all of their hard earned money on the lottery tickets. There are plenty of degenerate gamblers who are not "poor". Because we live in a democratic nation, we are allowed to make our own decisions as we choose. Does anyone really have the statistics on how many "poor" people buy lottery tickets?

DJ Smith
July 08, 2008

To answer Roi Polloi:
Lotteries have been described as a hidden tax by some. Rather than set up new taxes to solve real problems, states decided that revenue could be generated from lottery profits. Some who oppose lottery for this reason have defined them as simply hidden taxes and have used the term “regressive tax” to define them. A regressive tax is defined “as a tax system in which those with low incomes pay proportionally higher taxes than the wealthy.”
The 1999 National Gambling Impact Study Commission Final report at http://govinfo.library.unt.edu...llrpt.html is a lengthy but interesting read on all things gambling. On page seven in chapter seven the study talks about the people most likely found to play lotteries. Naturally, anyone can Google “lottery impact studies,” “pros and cons of lotteries,” etc. to do online research to learn more.

Roi Polloi
July 08, 2008

I understand why regressive taxes and so-called hidden taxes are a concern. I wouldn't argue in favor of a state-run lottery, but at least playing the lottery is optional. Do you know how much tax the poor have to pay for utilities, groceries and gasoline? Not optional. I worry more about about the taxes that are mandatory and most burdensome for the poor.

barracuda
July 08, 2008

Reading the previous comments, I searched and found out that according to txlottery.org given their '07 figures for their 10-Years - 10 Billion for TX Education they give the following info...61% paid prizes, 27% foundation school fund, 5% - retailer commission, 5% lottery administration, 2% other state programs (unclaimed prizes).

Gunner
July 08, 2008

Specifically, a "regressive" tax means that it puts a larger burden, proportionally, on the poor than on the rich. For example, a tax on restaurants is seen as "progressive" while a tax on groceries is seen as "regressive", since it's generally accepted that the poor buy most of their food in the grocery store, while the more affluent eat in restaurants more than they cook at home, and they dine at nicer restaurants (increasing the check and the amount they pay).

Thus, a person with a $30,000 a year income who spends $300 a year on the lottery is paying, as a percentage of his or her income, ten times more than a person who makes $300,000 a year and spends the same $300 a year. Also, it's felt that the poor generally spend more on lottery tickets, increasing the burden. In reality, the person making $300,000 a year will probably spend ZERO on lottery tickets, whereas they would have HAD to pay taxes if it were included, in say, property taxes (which are generally seen as "progressive", since the more affluent have larger houses).

Nevertheless, I stand by my feeling that Arkansas needs to compete with the surrounding states on an equal footing. The reality is, folks who live near the borders ARE driving across the state line to spend their entertainment dollars, and a lottery gives Arkansas a chance to keep some of that money home. In addition, big companies see lotteries as keeping taxes lower, and even a few percentage points lower is enough to sway a company one way or the other when it comes to locating a new facility.

CTYankee
July 08, 2008

Why not just repeal the rest of the sales tax remaining on groceries and replac it with removing the sales tax exemptions on advertising and legal services that don't pay a penny? Think that one may rile up a few folks in the next legislative session?

Big Dog Daddy
July 08, 2008

According to my email I've won 42 different UK lotteries in the past week in a half. I'm freakin rich! And I never bought a ticket one.

SOPHIA071
July 28, 2008

I would just like to say that morality cannot be an issue of legislation. That is the problem with politics nationwide, and it doesn't work. People have a right to use their free will without government interference. Who wouldn't rather pay tax voluntarily?


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