Home > Uncategorized > A Shortfall in Gambling Profits Dedicated for the Funding of NH Kindergartens Put Public Education Advocates in a Box

A Shortfall in Gambling Profits Dedicated for the Funding of NH Kindergartens Put Public Education Advocates in a Box

February 12, 2019

Concord Monitor reporter Ethan DeWitt wrote an article the appeared in today’s Valley News indicating that there is a serious revenue in the gambling revenues that could result in a shortfall of funding for Kindergarten’s across the state.

The game pulled in $8.3 million in sales in its first few months – Fiscal Year 2018 – and is projected to garner just under $15 million in Fiscal Year 2019, which ends in June, according to figures provided by the Lottery Commission on Monday.

But after expenses and prize payouts, those numbers diminish to $1.5 million of net profits in its first year, and $2.3 million in its second, according to the commission. That’s the money that ultimately makes it into the state coffers for kindergarten.

Those profits — exacerbated by several rejections of keno in major cities and towns — are far below the estimated $11 million needed to provide the minimum additional adequacy under the keno bill. The shortfalls mean the state will be picking up the tab for the rest, and that school districts are unlikely to get more than the minimum.

The consequences appear to be innocuous… but the Governor is concerned enough that he sent an email to all Superintendents alerting them budget only $1100 per student— the minimum amount allowed by law– as they prepare their budgets. Moreover, given New Hampshire’s notorious inability to raise any supplemental revenue and their past practice in fulfilling funding promises it would not surprise me if the State did not keep its commitment to meet the minimum figure.

And here’s what I find despicable: the schools in communities who rejected the keno “opportunity” might find themselves at a point where they might feel compelled to support gambling so that they can get sufficient funds for their Kindergarten children. While this has been a de facto reality at the STATE level, the NH legislatures unwillingness to mandate a statewide gambling program pushed it down to the local level. When faced with revenue shortfalls due to the lack of Keno funds and angry voters whose taxes are increasing, school boards in towns who failed to adopt Keno might find themselves in an awkward position. But then in New Hampshire, where so called “sin-taxes” on alcohol, cigarettes, and gambling are the major source of revenue, voters who drink, smoke, and gamble are prized. Those who earn money, not so much.

 

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