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Thursday, February 27, 1997

Bill would dedicate lottery contract savings to education

By PEGGY FIKAC Associated Press Writer

AUSTIN (AP) - Some lottery money would be earmarked for education for the first time under a bill passed by Texas senators, despite questions about how it would work and a warning that it doesn't mean increased school funding.

The bill by Sen. Drew Nixon, R-Carthage, would set aside for education any savings from putting lottery contracts up for competitive bidding. It was approved Wednesday by the Senate and goes to the House for consideration.

Of the savings, 95 percent would go the state's foundation school fund and 5 percent to the Texas Workforce Commission for community-based adult literacy programs.

"I think it does start to make good on the promise that legislators made four or five years ago when they passed the lottery," Nixon said, referring to the erroneous belief of some Texans that lottery revenue would go to schools.

Senate Finance Committee Chairman Bill Ratliff, R-Mount Pleasant, stressed that the bill wouldn't mean additional money for education unless budget-writers appropriate more funding.

If there is no additional appropriation, the dedicated funds would just replace other money from the state treasury that now goes to education.

"I want to make sure that everybody who is within the sound of my voice understands it doesn't mean one more penny in public education," Ratliff said.

"It is very difficult to vote against something that says we're going to dedicate money to education, but I don't want to play a shell game with the people of Texas," he said. "I don't want to deceive the people of Texas."

The lottery on Tuesday announced that it had sought new, competitive bids for its scratch-card games and saved $4.3 million a year. The state spends about $8-1/2 billion a year on public education.

Lottery profits currently go to the general revenue fund, which pays for most state services including education.

Nixon said he wants to encourage the Texas Lottery Commission to save money and added, "Maybe inadvertently if we do save some money ... that money might be allocated to public education."

Several senators questioned how the bill would work and noted that much depends on when lottery officials rebid a contract. The Lottery Commission next week is scheduled to consider rebidding its contract with the company that runs the game, GTECH.

"We really don't know how much money this is going to save, and when," said Sen. Gonzalo Barrientos, D-Austin.

Senators did not take a record vote on final passage of the bill. But on a preliminary vote, only four voted against it, all Republicans: Sens. Ratliff, Chris Harris of Arlington, Jerry Patterson of Pasadena and David Sibley of Waco.

Republican Gov. George W. Bush has advocated dedicating all lottery profits to education, even though critics say it's an unstable funding source. Sen. Jane Nelson, R-Flower Mound, has filed a measure to funnel lottery profits to education.

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The lottery-education bill is SB237. Send a Letter to the Editor about This Story | Start or Join A Discussion about This Story
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