The Great Florida Lottery Hoax

In 1986 by a 2-1 margin Florida voters enacted a constitutional amendment for a Florida lottery that would use proceeds – about 30% after paying 50% in prize money and another 20% for vendors and other fees – to enhance education. In the 21 years since sales began in Jan 2008, the lottery has contributed $21 billion to education in Florida.
Sounds like big money, but it covers only about 5% of education spending in Florida. Still, if the lottery met its goal (and it did) of “enhancing” education, you’d think Florida students would be in great shape right now.
Think again. In those 20+ years, Florida has gone from number 28 among all states in the country in per-pupil spending to number 46, near the bottom of the barrel. The reason? As lottery money flowed in, state funding flowed out. In 1985, state sales taxes and fees paid 65% of the cost of public education. Now, 25 years later, the state’s share is down to about 40% of education costs. Lottery money replaces tax dollars legislators might spend on education, but instead spend on other projects – becoming part of the big pot of money that funds basic functions of government.
Who picks up the slack? “Local” funding – meaning property owners. Local taxpayers are shouldering a responsibility that should be the burden of the state. For the 2008-2009 fiscal year, ad valorem taxes – from property owners – funded 53% of Florida’s education budget. Two decades ago, when the lottery began, property owners contributed 35% of the education budget.
The result has been a steady decline in Florida’s per-pupil spending over the past 20 years. The Heritage Foundation, a conservative think tank, found that after adjusting for inflation Florida was the second worst state in the nation at increasing its K-12 per-pupil funding in the 1994-2004 period. And Education Week gave Florida an F in overall funding and college preparedness.
Some people recognize the problem. A Northwestern Law School professor called the lottery in her state, “a shell game from the beginning.” Former Florida governor (1991-1998) Lawton Chiles once called the lottery “a great hoax on the people.” A legislative scam of epic proportions would also be an apt description.