Author: Bob Weeks

  • Americans for Prosperity Statement on the Current Special Session

    Americans for Prosperity Statement on the Current Special Session
    June 29, 2005

    “Americans for Prosperity — Kansas is pleased that both legislative leaders and Governor Sebelius have ruled out tax increases on Kansas families and businesses as a way to meet the recent Supreme Court ruling.

    The tax burden on Kansans is already too high and combined with the private sector job losses it is clear that a tax increase would be not in the long term interests of our state. After the misguided tax increase effort of 2004 and the initial call in some quarters this year for a tax increase it is positive to see that legislative leaders and Governor Sebelius and legislative leaders have realized the need to set a new course.

    We want to thank the literally thousands of Kansas citizens from across our state and from all walks of life who have called, written and met with their elected leaders to demand more efficient government, relief from higher taxes and a return to the entrepreneurial spirit that has made Kansas so great. These grassroots activists — many of whom are AFP-Kansas members — are helping bring a new political culture to our state.

    As our elected leaders decide how to respond to the Supreme Court’s decision requiring hundreds-of-millions of dollars in new education spending AFP-Kansas encourages them to consider ways to improve education results with forward-looking reforms. Like the vast majority of Kansans, we have supported needed funds for education. As a massive new infusion of tax dollars for education is considered, now is the time to make sure that Kansas’ children are receiving the full benefits of this money. That means actively looking for ways to get more dollars directly into classrooms instead of seeing them wasted on bureaucracy, giving parents greater input into their children’s education, and making sure that every child is given the very best opportunity to achieve the American Dream.”

    Study after study has shown that spending more money does not increase the quality of education. Our focus needs to be on improving education for Kansas students, not on building a large bureaucracy that siphons money from the classroom.

    We also applaud the efforts of those legislators pushing the Constitutional Amendment that clarifies the role of the courts vs.. the legislature in how taxes are levied and public funds are spent. The passage of this amendment will ensure that the public’s voice on spending and tax issues is not overruled by judges that face little public accountability and virtually no public input in their selection.

  • Report from Topeka, June 30, 2005

    Thank you again, Karl Peterjohn of the Kansas Taxpayers Network, for your insights into the Kansas Legislature’s special session.


    The Kansas house passed on a 64-to-59 vote a school spending plan that is contingent on the court not removing any parts of this plan and the voters getting their hands on a constitutional amendment to reaffirm the legislature’s fiscal authority. This bill, house substitute for SB 3 goes to the senate for either concurrence or conference committee.

    The house is scheduled to take up a constitutional amendment but that won’t occur until 2 PM at the earliest. The senate will meet at 2 PM.

    It will take at least 4-to-6 house Democrats to vote for a constitutional amendment to offset the Republicans who have been voting against a constitutional amendment in this 125 member body. There are 84 votes needed to pass a constitutional amendment. Two have been discussed.

    The house vote is good news in the constitutional battle but it is not decisive by a long shot. If the constitutional amendment(s) is (are) passed and the senate concurs on this bill this special session could end today with this as a response to an overbearing court and a reassertion of legislative powers. However, the senate could easily decide not to concur and a variety of events could then take place.

  • Report from Topeka, June 29, 2005 (afternoon edition)

    A second report for today from Karl Peterjohn of the Kansas Taxpayers Network.


    The senate Republicans have weighed in and made a significant impact today. A majority of the GOP Senate caucus met with their leadership and made it clear that they would not be involved in other votes on school finance until the constitutional amendment protecting legislative powers issue is resolved.

    This is important for a number of reasons. It is a message to the Senate President Steve Morris and the rest of the leadership that their positions are in some jeopardy without keeping a majority of the GOP caucus behind them. Second, it provides leverage for some house Democrats who would like to vote for a constitutional amendment but are being pressured behind the scenes by their leadership starting from the governor’s office and working its way down that want to keep the Democrats together (only one house D voted for the amendment last weekend) but some members do not want this to be locked into a position defending the court.

    Since 84 votes are needed to pass any constitutional amendment in the house and there are 83 Republicans some Democrats will have to vote for this amendment since there are at least a handful of die-hard liberals led by lawyers Tim Owens and Ward Loyd who have publicly criticized on the house floor the senate passed amendment protecting the legislature’s fiscal powers in the strongest words possible. Any amendment would go to the voters in August.

    What has made this turn of events quite interesting is the unified senate GOP support for the amendment with every senate Republican voting for this proposal. This includes some very liberal GOP legislators.

    The house goes in at 4 PM (right now) and school finance is on the agenda. However, they were expected to start this debate at 11 AM and it has been postponed. It could be postponed again but even if a school finance expenditure bill is passed, the payment for this in the form of either higher taxes or expanded gambling must be resolved too. That’s why the senate’s position on the amendment is critical.

    Quick passage in the house of a constitutional amendment followed by a supplemental appropriation for the schools could lead to a quick end to this special session. A lot of balls are still in the air and depending on which ones come down and how soon, will determine the outcome of this special session.

  • Report from Topeka, June 29, 2005

    Thank you again, Karl Peterjohn of the Kansas Taxpayers Network, for your insights into the Kansas Legislature’s special session.


    The legislative special session is going to reach a crucial turning point today at the Kansas statehouse.

    A group of tax and spend Republicans, lead by Rep. Ward Loyd, Rino-Garden City met with Governor Sebelius and received her blessing for a $161 million school finance spending bill that will be debated and voted upon in the Kansas house today. Last year, Loyd begged Democrats to re-register before the August primary so they could vote for him in his tough primary race. Loyd barely won that contest.

    If this spending bill passes the legislature will have begun surrendering their fiscal authority to the Sebelius dominated Kansas Supreme Court. While Governor Sebelius only appointed one of the current six judges on the court, Justice Carol Beier, her chief of staff is married to another judge on this court, Justice Donald Allegrucci. In addition, Governor Sebelius has been working to enact the court’s $1 billion edict to increase school spending in the Montoy school finance case. In April, the governor endorsed the school districts position opposing the $142 million school spending increase approved by the 2005 legislature and which became law without the governor’s signature. She is backing the court’s usurpation of fiscal power in this state by her actions.

    The house is scheduled to come in at 11 AM this morning and this debate is likely to be long and acrimonious. The key will be whether or not there are 63 fiscally responsible house members who will reject this fiscal folly or not. This issue, and potentially the future of representative government in Kansas, is definitely in doubt.

    If this spending package is passed the session will then move to trying to figure out how to raise roughly $75 million to finance this abomination in the fiscal year that begins Friday, July 1. Proposals to expand gambling or raise taxes will be on the table. The $86 million windfall the state received earlier this month will be spent but a lot more money will be needed.

    This spending growth will be chump change compared to the revenue that will be needed to finance the rest of the court’s June 3 edict. The incredible irony about this matter is that the 15 school districts sued the state board of education over school finance funding and the court rules against the legislature and the taxpayers of Kansas–none of whom are parties to this lawsuit. None of whom are allowed to speak in front of this arrogant court. In fact, legislative lawyers were specifically denied the opportunity to address the court during oral arguments in May.

    This court is treating the legislature with contempt.

    Sadly, the liberal Kansas press, as well stated by the Wichita Eagle’s editorial of June 26, 2005 that is headlined, “Calm Down,” and subtitled,”Judges do have authority on schools,” begins, “Those clamorous groups advancing on the Kansas Supreme Court with torches and pitchforks should pause and take a long, deep breath. That includes the Wall Street Journal editorial board, which opined portentiously last week that the six ‘unelected and unaccountable’ judes of the Kansas Supreme Cort had violated the separation of powers and formented a constitutional crisis..” and continued, “..In their carefully argued and precedent-based opinion, the Kansas Supreme Court justices addressed the authority issue directly, citing similar education battles in other states such as Kentucky…”

    Sadly for the Wichita Eagle, the Kentucky Constitution is not phrased the same as the Kansas Constitution’s public school provisions. What is significant is the fact that six appointed judges (four are registered Democrats and one of the two Republicans used to represent the Salina school district that is promoting this school finance lawsuit) have usurped legislative budget authority by ordering the legislature to spend $143 million in additional funds by July 1, 2005. In addition, one moderate Republican lawyer who chairs the house judiciary committee, Rep. Mike O’Neal, warned the house federal and state affairs committee June 28 that the court has created a clear and present danger by continuing to issue orders to the legislature that is not a party to this lawsuit. The court has not actually gotten around to overturning its 1994 ruling that school finance is constitutional and is operating under “interrim” rulings. The court’s January 3 interrim edict conflicts with the court’s June 3 edict.

    Unfortunately, the Kansas house recently rejected a proposal to provide a constitutional amendment (73-to-50 with 84 votes needed to send it to the voters to ratify it) that would clarify that fiscal authority lies with the legislature and not with other branches of Kansas government and stop this judicial usurpation.

    Kansas is in danger of a judicial oligarchy that is being supported by a governor who is deeply indebted to the government school spending lobby that is promoting this litigation and her Democrat legislative allies. The governor and the school spending promoting legislators deeply believe that the end justifies the means and the court’s actions are promoting public policy outcomes supported by these officials. Legislative skeptics are asking these legislators how they would feel about the court’s decision if the court was ruling that spending should be reduced instead of increased? This appeal to logic does not seem to be having much of an impact as of June 28.

    The real question is whether or not the average Kansas taxpayer is paying attention and cares about this critical fiscal fight at the statehouse. There are so many distractions. Besides the usual summertime diversions Wichita is still digesting the Dennis Rader atrocities and his 10 murder convictions. The transfer of Boeing Commercial Aircraft to Onex Corporation is transforming what used to be this state’s largest private employer in Wichita. In the Kansas City area General Motors recent announcement that it will be cutting 25,000 jobs over the next few years could definitely impact the car assembly plant in that area. The legislative sessions normally end in late April or early May so this is an unusual event that is not at the forefront of the news coverage in many parts of this state.

    Fiscally concerned Kansans should contact their legislators (this might be hard considering that some legislators have not turned on their email) by calling or writing (state capitol, Topeka, KS 66612).

    It is interesting to note how invisible Governor Sebelius has been in this special session. The governor called this special session but provided legislators with only a single sheet of platitudes when they arrived back at the statehouse. The “behind-the-scenes” meeting I mentioned above on June 28 (which was also reported in the news pages of the June 29 Wichita Eagle) between a bipartisan group of tax and spend legislators and the governor shows how far she has walked away from her 2002 campaign promises for fiscal conservatism and opposition to raising taxes. Like a lot of candidates who decline to sign KTN’s Taxpayer Protection Pledge, she walked away from her promises of fiscal responsibility once she took her oath of office.

    Here’s one example of her tax and spend behavior. The governor took a temporary sales tax hike that her predecessor had set at 5.3% and made it permanent. Sadly, all too many legislative Republicans voted for this back door tax hike. The sales tax rate was supposed to phase back down to 5.0 percent based upon the 2002 tax changes.

    In addition, the state’s General Fund is going to exceed $5 billion for the very first time if the governor gets her way on the state budget. Remember, it was 1981 when the state had its first $1 billion General Fund budget. Kansas’ All Funds budget (which includes KDOT, Medicaid, and other off-budget items) topped $11 billion for the very first time this year.

    The future of Kansas remains at risk and is dependent upon the fortitude of a majority of the Kansas House of Representatives today.

  • Report from Topeka, June 28, 2005

    Thank you, Karl Peterjohn, Executive Director of Kansas Taxpayers Network.


    Here’s a legislative update from Topeka as of noon Tuesday. A proposal to raise income and sales taxes has appeared now that the gambling measures are unable to pass out of the Kansas senate in the on going battle over judicial interference with the legislature and school finance in this state.

    The house is working on two tracks: the federal and state affairs committee is working on a constitutional amendment that would provide specific boundaries to protect the legislature’s appropriation powers. The second track is a supplemental appropriations bill. The latter requires 63 votes to pass in the Kansas house while a constitutional amendment needs 84 house votes and then is submitted to voters for their final approval.

    The legislature is operating under the Sebelius Supreme Court’s July 1 deadline of appropriating an additional $143 million for the fiscal year that begins on Friday. More is expected next year. Here are the major players and their positions:

    Governor Sebelius called the special session and wants expanded gaming (although apparently not by Indian tribes but by state owned franchise monopolies) and the legislature to submit to the court’s spending order on school finance. Legislative Democrats are backing her position but have begun expressing support for increased income and sales taxes. It is unclear how big a tax hike the governor is supporting since she relies upon the court and legislative leaders like senate Minority Leader Tony Hensley, D-Topeka when it comes to various revenue measures.

    Legislative conservatives are strongest in the house where many of them are saying that they will not appropriate a penny of new money (the state’s latest revised revenue estimates are showing that the Bush tax cuts nationally have recently produced about $86 million state revenue windfall) until the constitutional amendment clarifying the legislator’s budget powers is approved.

    GOP liberals are trying to work a deal in the house with legislative Democrats but it is unclear if they have anywhere close to the 63 house votes needed to submit to the court’s order. The senate passed a $161 million spending plan last Friday on a 25-to-14 vote. There were 15 Republican senators who voted with all ten Democrats for this spending bill (one liberal GOP senator is sick and absent) and 14 Republicans voting against it. The entire senate GOP caucus along with one Democrat then followed this vote by rejecting expanded gaming 17-to-22 and then voted for the constitutional amendment clarifying the legislators budget powers. This was highly unusual since the senate Republicans can seldom agree on where the sun is going to set.

    There are some GOP moderates who are outraged by the court and have backed the constitutional amendment to protect their constitutional powers. However, when this came up for a final vote in the Kansas house on Sunday, it failed on a 73-to-50 vote with two legislators missing and 84 votes needed for passage. 40-of-the-41 Democrats voting opposed the amendment. Nine Republicans voted with the Democrats led by several Johnson County “moderates” along with a handful of liberal and rural legislators. The GOP legislators voting with the Democrats on this included: Jeff Jack, Jim Yonally, Tim Owens, Stephanie Sharp, Barbara Craft, Don Hill, Dale Swenson, Pat Colloton, and Ray Cox.

    The Kansas Supreme Court has one vacancy since the April death of one of its members. The six members include four registered Democrats (one was appointed by former Governor Bill Graves) and two Republicans. One of the Republicans was a lawyer who represented the lead school district behind the school finance lawsuit. What is interesting about this lawsuit and perhaps unique about Kansas is these facts: A) the legislature is not a party to the lawsuit and when they sought to participate before the court during the May oral argument the court denied them the right to appear; B) the legislature is being ordered to appropriated specific amounts by a date certain by this court; C) It is possible (I am basing this upon the testimony of the Attorney General and Rep. Mike O’Neal before the house’s federal and state affairs committee today) that the court may decide to allocate the funds in a manner that differs with the legislators’ appropriation and allocation of these funds.

    Attorney General Phill Kline is clearly informing the entire legislature of their options and situation. Kline is trying to protect the citizens from a court that the moderate Rep. O’Neal described as engaging in a form of “…judicial extortion…” against the legislature and ultimately against the taxpayers of this state. O’Neal was careful in stating that the court had not overreached in their January 3 opinion on this case but had done so in their June 3 edict.

    Interestingly enough, AG Kline reported that the court has not actually overruled their previous decision from 1994 in the USD 229 case where that KS Supreme Court declined to assume the powers that the 2005 KS Supreme Court has now grabbed. No final ruling has been issued by the court.

    Regardless of how the legislature gets out of the current situation these facts are clear: 1) Increasing revenues are likely to be thrown at the schools if a constitutional option is sent to the people but this can occur without a tax hike but at a level well below $143 million; 2) gaming remains an issue; 3) while tax hikes are not the first option, tax hikes are going to appear among the tax ‘n spenders among most Kansas Democrats and all too many “moderate” Republicans; 4) the senate rejected on a 18-to-19 vote a proposal to cut spending by under $40 million yesterday (9 Republicans joined all ten senate Democrats on this vote).

    The fact that tax ‘n spend legislators like Bill Kassebaum, Cindy Neighbor, and Dave Corbin were retired by the voters in 2004 is the primary reason that both expanded gaming and taxes have not moved further through the legislative processes this year.

    Please feel free to forward this or send it along to Kansas web sites and blogs that are interested in this issue.

    Karl Peterjohn
    www.kansastaxpayers.com

  • Report from Topeka, June 24, 2005

    Thank you again, Karl Peterjohn of the Kansas Taxpayers Network


    The $160.7 million school spending bill approved by the Kansas senate yesterday passed with the votes of all 10 senate Democrats and 15 GOP tax ‘n spenders. These legislators were also willing to surrender their constitutional and budget authority to the six appointed members of the Kansas Supreme Court.

    Here is the list in alphabetical order:

    Pat Apple, R; Jim Barone, D; Don Betts, D; Pete Brungardt, R; Jay Emler, R; Marci Francisco, D; Mark Gilstrap, D; Greta Goodwin, D; David Haley, D; Tony Hensley, D Minority Leader; Laura Kelly, D; Janis Lee, D; Steve Morris, R Senate President; Ralph Ostmeyer, R; Roger Pine, R; Roger Reitz, R; Derek Schmidt, R Majority Leader; Vicki Schmidt, R; Jean Schodorf, R; Chris Steineger, D; Mark Taddiken, R; Ruth Teichman, R; Dwayne Umbarger, R; John Vratil, R Vice President; David Wysong, R.

    This list includes a variety of folks whose work includes school teachers and school district lawyers. Sen. Barbara Allen, who regularly votes for higher spending and taxes, is suffering from cancer and has not been attending this special session.

    Fortunately, the house Education Committee took $149 million out of this outrageous spending plan when they got their hands on it. Three Democrats walked out of the committee meeting in protest of this action. The house will debate this bill later today.

    Before the house gets to this education bill it is scheduled to debate two constitutional amendments to restrict the court’s from their legislative activities in the future. It will be fascinating to see if the tax ‘n spenders from both the Democrat and Republican caucuses will be willing to defend their constitutional and historic powers of the purse when these amendments are being debated. It will take 84 votes for final passage of any constitutional amendment out of the house and several members are absent today.

    This session is definitely running into this weekend and could wrap up early Sunday morning. If it does, it will be sometime between 3 and 8 AM Sunday. However, I would not bet on that outcome and expect to be back in Topeka next week as this constitutional crisis created by the left-wing Sebelius Supreme court continues.

    A correction: yesterday, I believe I mispelled the senate majority leaders last name. It is Derek Schmidt. I apologize for any mispellings contained within these posts and any other insults to the English Language I have accidently and unintentionally committed.

    This message will be posted shortly on www.kansastaxpayers.com and other quality web/blog sites. Please feel free to forward to fiscally and constitutionally concerned Kansans.

  • Report from Topeka, June 23, 2005

    Writing from a rest stop on Interstate 80 in Iowa where there is free wireless Internet access: Thank you again, Karl Peterjohn of the Kansas Taxpayers Network, for your insights into the Kansas Legislature’s special session.


    The Kansas senate begin surrendering their legislative powers to the Kansas Supreme Court when a 25-to-14 majority approved a $160 million school spending bill. This surrender took the form of the supreme court may want $143 million but we’ll show them with a $160 million!

    Take that, Kansas Supreme Court!

    Next for the senate is gambling and that wrangling will take quite a while. Last night the senate met until about 9 PM which I cannot recall ever occurring on the first day of any session. Yesterday was the “first day” for this special session.

    Only one slight piece of good news was the pro-tax and spend senator Barbara Allen from Johnson County is absent and that means it is a bit harder for the fiscal damage to occur without her consistent record of fiscal profligacy. I wish the reasons for her absense was not tied to her illness. Despite policy differences on fiscal issues I do not wish cancer upon anyone in public or private life…..well there might be a Bin Laden exception.

    The house has not done much. They could take up some constitutional amendments to restrict the activist, left-wing supreme court, but they need 84 votes to pass anything. With only 83 Republicans and a solid dozen left-wing RINO tax and spenders who cannot wait to surrender their fiscal powers to the court, this is a very high hurdle to overcome. The house is instead going to fund the Attorney General’s appeal of the death penalty case to the U.S. Supreme Court and aid national guardsmen from Kansas with their insurance.

    And….please don’t forget to forward this to friends who share your concerns about the fiscal/judicial climate in Kansas. This will be posted shortly at www.kansastapayers.com as well as other quality web sites and blogs in this state.

  • Jayhawk Judgment

    A few quotes from an excellent editorial in the June 22, 2005 Wall Street Journal titled “Jayhawk Judgment.” The link is here, although you probably have to subscribe to read it. Articles on some of these topics have recently appeared on this website.

    Kansas already spends a shade under $10,000 per student in the public schools — the most in the region and above the national average even though Kansas is a low cost-of-living state. Also ignored by the courts were the volumes of scientific evidence that the link between school spending and educational achievement is close to nonexistent. Perhaps one reason schools in Kansas aren’t as good as they might be is that the state ranks 47 out of 50 in education money that actually finds its way inside the classroom.

    The travesty of all these court interventions is that they promulgate the fundamental logical fallacy that has long undermined the U.S. public education system: that we should measure performance by inputs, not outputs. Every other industry in America is obliged to cut costs and get more for less; in education, parents and kids keep getting less for more.

    Describing the more than $1 billion in additional spending ordered by a judge in the Kansas City, Missouri school system:

    The result of this deluge of money was further declines in test scores. In that case even the judge himself later admitted he had erred in thinking that more money would improve dismal schools.

  • Gambling for education

    In a free society dedicated to personal liberty, people should be able to gamble.

    With gambling, though, there are fairly predictable costs that arise. Because of the variety of social services that our government provides, many of these costs are borne by the public as a whole. In other words, allowing people the freedom to gamble also means that many others must pay to clean up the mess that some will make of their lives. This cost outweighs the benefit of the freedom to gamble. If we could isolate the harm that problem gamblers cause so that everyone else wouldn’t have to pay to fix it, that would be a different matter.

    Even if we could isolate the harm from gambling to those who choose to gamble, innocent victims are harmed — the children of pathological gamblers, for example.

    Those who wish to gamble should be able to do so, then, if the harm the problem gamblers cause can be contained. But our state provides so many social services that containing the cost is likely impossible.

    If we are to allow gambling in Kansas, we should not tax it in the way being proposed. Why? If casinos in Kansas are successful, they will generate a lot of tax revenue. The government becomes dependent on that tax revenue, and thereby forms a de facto partnership with the casinos. It will be in the state’s interest to have more gambling. The state will likely advertise and promote the casinos, just as it advertises and promotes the Kansas lottery.

    We should also keep in mind that the amount it seems like casinos might generate ($150 million per year is a figure I often hear) is a relatively small amount. Kansas tax revenue for fiscal 2005 was $4,632.5 million, so revenue from casino taxes might be about 3.2% of total Kansas tax revenue. But the real percentage is even less, as total spending by the state that year was over $10,813 million, so the amount raised from gambling is less than 1.4% of Kansas total spending. The incremental gain — what really matters — is even less, as much if not all of the money spent gambling is money that would have been spent elsewhere, likely generating tax revenue for the state there.

    Of course, this money is for the children, as casino advocates say. We must have casino gambling so that our children can be properly educated, they say. But money is fungible. To say that money arising from a specific source only benefits a given cause is illusory. It makes as much sense as saying the money I earn on Monday and Tuesday goes to the mortgage payment, the money earned on Wednesday for food, Thursday for retirement, etc.

    So the real question, then, is do we want to unleash on this state the problems of casino gambling for the vanishingly small benefits it may bring? That is, if we can somehow control and contain its social costs? For me, the answer is “no.”

    Some Research on Gambling

    If you are interested, a good article to read is an excerpt from The Business-Economic Impacts of Licensed Casino Gambling in West Virginia: Short-Term Gain but Long-Term Pain. Some quotes:

    From a business-economic perspective, the main issue involved in legalizing various forms of gambling is whether gambling activities constitute a valid strategy for economic development. While the dollars invested in various legalized gambling projects and the jobs initially created are evident, the industry has been criticized for inflating the positive economic impacts and trivializing or ignoring the negative impacts (Goodman 1994). The industry’s tendency to focus on specialized factors provides a distorted view of the localized economic positives, while ignoring the strategic business-economic costs to the state as a whole (such as West Virginia) and to different regions of the United States (California Governor’s Office 1992, Kindt 1995). In 1994, all of the various experts who testified before the U.S. House of Representatives Committee on Small Business criticized the impacts that casino-style gambling activities inflict upon the criminal justice system, the social welfare, system, small businesses, and the economy (Congressional Hearing 1994). Utilizing legalized gambling activities as a strategy for economic development was thoroughly discredited during the hearing.

    In recent economic history, legalized gambling activities have been directly and indirectly subsidized by the taxpayers. The field research throughout the nation indicates that for every dollar the legalized gambling interests indicate is being contributed in taxes, it usually costs the taxpayers at least 3 dollars– and higher numbers have been calculated (Politzer, Morrow and Leavey 1981; Better Government Association 1992; Florida Budget Office 1994). These costs to taxpayers are reflected in: (1) infrastructure costs, (2) relatively high regulatory costs, (3) expenses to the criminal justice system, and (4) large social-welfare costs (Illinois Governor’s Office 1992). Accordingly, several state legislators (e.g., in South Dakota) have called for at least partially internalizing these external costs by taxing all legalized gambling activities at a straight 50 percent tax rate.

    Specifically regarding education, which is a driving force for considering gambling at this moment.

    Gambling activities and the gambling philosophy are directly opposed to sound business principles and economic development. Legalized gambling activities also negatively affect education– both philosophically and fiscally (Better Government Association 1992; Clotfelter and Cook 1989). Adherence to a philosophy of making a living via gambling activities not only abrogates the perceived need for an education, but also reinforces economically unproductive activities (and is statistically impossible since the “house” always wins eventually). In states with legalized gambling activities which were initiated allegedly to bolster tax revenues to “education,” the funding in “real dollars” has almost uniformly decreased.

    From the conclusion:

    Increasingly, taxpayers and businesses are beginning to realize that, as Professor Jack Van Der Slik has summarized for much of the academic community, state-sponsored gambling “produces no product, no new wealth, and so it makes no genuine contribution to economic development” (Van Der Slik 1990). Business-economic history supports this proposition. The recriminalization of gambling activities occurred 100 years ago after a brief gambling boom following the Civil War. Most state legislatures utilized constitutional provisions to recriminalize gambling, because lawmakers wanted to make it as difficult as possible for future generations to experiment with the classic “boom and bust” cycles and the concomitant socioeconomic negatives occasioned by legalized gambling activities. To paraphrase Georg Hegel’s common quote, “those who forget the lessons of economic history are condemned to relive them” (Bartlett 1968).

    Even the supporters of gambling concede there are social costs. In a report prepared for the Wichita Downtown Development Corporation and avaible to read by clicking here, we read: “At a cost of $13,586 in social costs for each [pathological gambler], the annual burden on the community could range between $71 and $106 million.” Of course, these costs are offset by benefits, the study says. These costs are not just dollar costs, however. They are human costs paid in suffering, often by innocent family members of the problem gamblers.

    Politicians’ Confusing Attitudes Towards Gambling

    The attitude of some politicians is quite confusing. For example, as reported in The Wichita Eagle on June 16, 2005, regarding Senator Donald Betts:

    Sen. Donald Betts, a Wichita Democrat, said he is aware of gambling’s social impact, having grown up in Las Vegas.

    “Beyond the neon, there was a grim reality of what gambling does to a community,” he said.

    Still, he said, he likely would support a gambling bill if it is brought up next week.

    “In my district, I believe it’s a lot better choice than increasing taxes,” Betts said. “My constituents are calling me and asking me, when are we going to get the casinos?”

    (If I were as clever as Rush Limbaugh, I suppose I might make some crack about what a guy named Betts thinks about gambling.)

    There are other examples of politicians saying they know there is a downside to gambling, but we’re going to have it anyway, they say.