Senate panel says no to lottery

Kirsten Searer

Friday, March 25, 2005 | 10:02 a.m.

CARSON CITY -- A Senate committee voted not to pass a proposal Thursday that would create a statewide lottery.

Democrats had made the measure one of their top priorities this session, saying a lottery could infuse at least $40 million a year into schools for textbooks, classroom supplies and class-size reduction.

But the Senate Judiciary Committee voted 5-2 against the motion, with Republicans on the committee arguing that there are better ways to fund education.

Judiciary Chairman Mark Amodei, R-Carson City, said a lottery would create a $100 million to $200 million industry to generate just $50 million a year for schools.

"I am not going to vote in favor of creating an entirely new industry, which puts the state directly, as opposed to indirectly, in the gaming business," Amodei said.

Experts testified that a lottery would probably create about 125 jobs, and the state would reap about 30 percent of the revenue for education.

Amodei said the lottery "creates no jobs, creates no tax base -- does none of those things -- all for the purpose of providing $50 million for a worthy cause, which I believe exists in the budget already."

Sen. Steven Horsford, D-North Las Vegas, attempted to save the measure by amending it to allow ticket sales only in businesses with unrestricted gaming licenses.

He said he was upset that Republicans were speaking against the lottery proposal because it was the only one in the Legislature that would put a direct infusion of money into schools for textbooks and classroom supplies.

"I have yet to hear one proposal come forward other than this one that proposes to address the future needs of the tremendous growth that will occur in our public education system in Nevada," he said.

"I do not understand in good conscience how members of this Legislature would not allow a proposal to go forward and allow the voters to decide," Horsford said. "If it fails today, I hope members of this body will come forward with some constructive, meaningful, specific plans to fund these needs that have been identified not only here today but in several other hearings."

Forty-one states and Washington, D.C., have state lotteries, and four of the five Western states with lotteries devote funds to public schools, Horsford said.

Assembly Speaker Richard Perkins, D-Henderson, the primary sponsor of the bill, said he hopes the issue isn't entirely dead. He said he would talk to members of the Senate committee to see if the bill can be amended to ease their concerns.

The one Democrat on the committee who voted against the measure was Sen. Terry Care, D-Las Vegas, who said he was uneasy that a disproportionate number of poor people would spend money on the lottery.

But Perkins argued that studies show middle-income families buy the most lottery tickets, not poor ones. He said poor families are just as likely to put their money in slot machines.

"The argument to me is a difficult one to muster in Nevada, where in virtually every convenience store in the state there is some sort of gaming device where someone of any income could gamble their money," Perkins said.

Care did say he was upset that gaming representatives who have been making behind-the-scenes contact with legislators to lobby against the bill didn't show up Thursday to express their concerns.

"I think it's very disingenuous that certain members of the gaming industry are circulating the hallways, counting noses on this issue," Care said.

Although many representatives of the gaming industry have said they would stay out of the lottery debate, Care said, "I can tell you there's been some head counting going on. I'm not going to name anybody."

Sen. Maurice Washington, R-Sparks, pointed out that the Legislature infused money into schools last session as part of its $833 million tax increase. He said he would rather look at other funding sources, such as using $50 million from the surplus, than establish a lottery.

"I think it's a little disingenuous," he said. "If you want a state lottery, let's just say you want a state lottery. Let's not play games with it because you and I both know 53, 54 percent of the (state) budget goes toward education."