Sagging lottery
sales will test legislators’ resolve
THERE WAS NOTHING surprising about the recent news that South
Carolina’s lottery sales have begun to decline. It’s what we’ve seen
happen in state after state after state, across the country. Lottery
sales soar when the government gets into the gambling business; then
the excitement begins to wane, and sales start to fall.
Nor is there anything troubling about the decline, to those of us
who believe people would be better off spending their money on more
useful products.
What’s troubling is what comes next in state after state after
state: Politicians, having used the manna of free money to create
popular new programs that need more funding whether lottery funds
are available or not, demand higher sales. So lottery officials roll
out ad campaigns that lure desperate people into believing all their
troubles will magically disappear if they simply start playing. They
offer up ever-more-enticing and -addictive “games,” culminating in
video gambling.
The good news is that our legislators were responsible enough to
strictly limit the type and amount of advertising the lottery can
do, and they prohibited video gambling and other addictive forms of
gambling.
The bad news is that legislators can easily lift those
restrictions if they get desperate enough. And the spending choices
they have made, particularly this year, have laid the groundwork for
such desperation.
This spring, when lottery money was still on that normal initial
spaceship-like trajectory, lawmakers fell back into the same
dangerous habit that had gotten our state into such a mess with the
regular budget. Officials had only predicted that the lottery would
generate $255 million this year, but legislators had some surplus
lottery money left over from last year. So they bought $340 million
worth of scholarships, math programs, homework centers, endowed
chairs and other goodies.
Lottery officials, who thought the $255 million projection was
conservative, are confident that they will be able to generate that
much this year, even with the sagging sales. But even if that
happens, and the state is able to pay all of its bills this year,
there is no way this lottery can generate $340 million next
year.
That would have been the case even if lottery sales had continued
to increase. What the slow-down means is that next year’s shortfall
will be even larger than anyone expected.
When legislators return to work in January, they’ll have to
figure out what to do about this. The situation would be bad enough
if they had kept their promise to use lottery funding only for new
“extras,” such as scholarships. But they haven’t; nearly 5 percent
of the state’s general public education funding this year is coming
from lottery funds. That money is paying for basic programs that are
essential to our state.
The only options are to cut other programs and pay for some of
these lottery-funded programs with tax money (as many of them should
have been to begin with), to cut some of the lottery-funded programs
or to lean on the lottery to produce more money — which means easing
the very sensible restrictions we have on how far the state can go
in suckering the public.
As unpleasant as the idea of cutting programs is, the thought of
lifting lottery restrictions is intolerable.
The task before legislators is not easy: Not only must they make
hard choices about which programs to do without; but before they dig
our state any deeper into this hole, they also must abandon what is
quite literally a lottery mentality, and resolve to start acting
responsibly about the way we fund state government. |