New York’s lottery-funded scholarship program criticized by Democrats

Joel Stashenko

Monday, March 6, 2000 | 9:24 a.m.

ALBANY, N.Y. - The Pataki administration's plan to award $4,000 scholarships to some 1,300 New York high school seniors using state Lottery revenues is illegal, Democrats in the state Senate are charging.

The Republican governor needs legislative approval before authorizing the so-called "Leaders of Tomorrow" scholarship program, the Democrats contended.

The Lottery Division has already started promoting the program with full-page newspaper advertisements advising high school seniors they have until March 31 to apply. The awards would be made in June, Lottery officials said.

"Your actions in advertising and promoting the program are an unlawful exercise of your authority under the state constitution, which denies you the power to implement and expend money on a program unless it has been authorized by the Legislature," three senators argued in a letter sent to Gov. George Pataki last week.

Those signing the letter were state Sens. William Stachowski of Buffalo, Eric Schneiderman of Manhattan and Richard Dollinger of Rochester.

Charles Deister, a spokesman for Pataki, dismissed the lawmakers' complaints.

"This is a program that does not need legislative approval," he said. "Therefore this (letter) is irrelevant."

Teens must be graduating from high school with a "B" average or higher to qualify for consideration for a scholarship, plus have showed they are "well-rounded" academically, socially and athletically and are going to attend a public or private college or trade school in New York state. Schools were directed to forward the names of two nominees to the state, and a panel appointed by Pataki would decide the recipients.

Winners will get $1,000 a year for up to four years. A new set of scholarship winners will be selected each year.

The legislators also questioned the fairness of the selection process, arguing that school officials are being given no criteria to judge the phrase "well rounded" by.

The "Leaders of Tomorrow" scholarships would deepen the state Lottery's ties with public schools. Previous programs have included "New York Wired," a Lottery-funded initiative providing schools with computers and Internet hookups, and an "Educator of the Week" program which recognizes successful teachers across the state.

Lottery officials say revenues for their games go to support education and that it is only natural to reaffirm that connection through various school-based programs.

But critics say a too-cozy relationship between the Lottery and schools could cause some youngsters - too young yet to legally buy Lottery tickets - to get the signal that gambling on the Lottery is to be encouraged.

State Assemblyman Sam Hoyt, a Buffalo Democrat, said there would undoubtedly be an outcry if companies involved in two other activities not legal for youngsters - tobacco giant Philip Morris and beer maker Anheuser Busch - began to sponsor scholarships for high schoolers in New York.

"On the merits, the (Lottery scholarship) program sounds like a good one - rewarding students for high achievement, for excellence in education," Hoyt said. "I like that concept. But I don't like the fact it is a direct earmark from the Lottery."

Hoyt in 1998 complained about the Lottery Division's use of a modified yellow school bus to promote the state's games, saying it was a marketing ploy aimed at young people. The vehicle is still being used, but it looks less like a school bus now.

Laura Letson, head of the New York Council on Problem Gambling, said that, for better or worse, the link between the Lottery and education exists in New York. She said the Lottery sponsoring scholarships for high schoolers may not be inappropriate, but she urged the Pataki administration to "move forward very cautiously" so it does not allow the Lottery to be promoted among underage people.

She agreed that an Anheuser-Busch scholarship program would be frowned upon, but complained that gambling among young people is not recognized as posing the same kind of hazard as alcohol.

"Why is it that government's message when it comes to alcohol, drugs and children is abstinence and why is it when it comes to gambling it is moderation?" she asked.

Lottery officials deny marketing their products for minors and say they try hard to make sure underage people do not buy Lottery tickets.