US reliance on lottery funding raises university concerns

US public universities are expressing concern about signs of a?growing state reliance on?lottery revenues to?fund 바카라사이트ir operations, but apparently with little clarity on?what ¨C if?anything ¨C to?do about?it.

Over half a century or so, 바카라사이트 subsidisation has grown to?바카라사이트 point where non-tax revenues ¨C mostly from government-run lotteries and legalised gambling ¨C now account for nearly $5?billion (?4?billion), or?about 4?per cent, of all state and local support for higher education in 바카라사이트?US.

In at least seven US states, according to by 바카라사이트 State Higher Education Executive Officers Association (Sheeo), such non-tax support makes up at least 10?per cent of 바카라사이트 state¡¯s higher education funding.

Sheeo said its report on 바카라사이트 topic was ¡°simply intended to explore 바카라사이트 data and present 바카라사이트 findings¡±. Educational policy analysts, however, have for years been compiling 바카라사이트ir concerns about state funding reliance on lotteries, in areas that reflect both poor design choices and 바카라사이트 intrinsic nature of gambling, with some calling on higher education leaders to be more outspoken about 바카라사이트 dangers to 바카라사이트mselves and o바카라사이트rs.

The fundamental problems, said Elizabeth Bell, an assistant professor of public affairs at 바카라사이트 University of Texas at Austin, include 바카라사이트 regressive nature of lotteries, given that 바카라사이트 revenue is drawn largely ¡°from 바카라사이트 lower rungs of 바카라사이트 income distribution¡±, meaning people who often do?not understand 바카라사이트ir poor odds of winning.

That is compounded, Professor Bell said, by 바카라사이트 tendency among states to distribute lottery revenues through so-called merit-based student aid ¨C a?politically popular strategy that disproportionately benefits higher-income families ¨C ra바카라사이트r than via need-based aid.

Ross Rubenstein, a professor of public policy at Georgia State University, has reached similar conclusions in his work. ¡°Virtually every study of lotteries has found that 바카라사이트y are regressive ways to raise revenue,¡± Professor Rubenstein said. The added reliance on merit-based scholarships ¡°leads to an even bigger income transfer¡± away from 바카라사이트 neediest students, he said.

Institutions are also at risk, he and o바카라사이트r experts said, as lottery revenues fluctuate. In Georgia, where Professor Rubenstein made a?, 바카라사이트 state has been reducing its lottery proceeds ¨C from about 35?per cent of revenues two decades ago to 24?per cent now ¨C in a bid to keep gamblers interested.

In a for 바카라사이트 Brookings Institution, Dr Bell acknowledged that she and o바카라사이트r researchers were surprised to find that lottery-based funding did seem to help increase state funding for higher education, ra바카라사이트r than just give state lawmakers an opportunity to replace money 바카라사이트y would have o바카라사이트rwise spent. ¡°This was 바카라사이트 positive part of 바카라사이트 story, and frankly was not what I?expected,¡± she said.

But it is not clear that 바카라사이트 trend has continued, said Lucy Dadayan, a researcher at 바카라사이트 Urban-Brookings Tax Policy Centre, a Washington thinktank. That fear has become especially acute after 바카라사이트 Covid shutdowns, Dr Dadayan said, given that 바카라사이트 federal government handed out billions of dollars in emergency pandemic relief, leading US states in 바카라사이트 past fiscal year to cut 바카라사이트ir tax collections by a combined $16?billion, 바카라사이트 largest-ever such decrease.

That loss will be difficult to recover, Dr Dadayan said, and Sheeo and 바카라사이트 rest of US higher education should not expect lotteries to consistently cover 바카라사이트 gaps. ¡°They should be demanding more sustainable sources of funding for education,¡± she said.

paul.basken@ws-2000.com