The “compromise” reached by lawmakers over lottery funds for school construction is awful. It really is.
Here is how it works.
1. The funding formula retains the “high tax bonus,” additional lottery funds given to counties that have an effective tax rate that is higher than the state average rate.
If the goal is “equalizing the distribution of that money,? as Rep. Ray Rapp (D-Madison) says it is, then they should simply eliminate the “bonus” and allocate funds based on student enrollment. But the compromise does not do this. Instead…
2. If lottery revenues exceed expectations, counties that do not receive the high tax bonus would receive up to $14 million in additional funds for school construction.
The real kicker is yet to come.
3. If lottery revenues do not exceed expectations, Rapp “predicted lawmakers would find a way to provide at least $14 million in extra funding, even if they have to take it from the state?s general fund.”
This is deja vu all over again. When the lottery failed to meet revenue expectations last year, state legislators used general fund money to supplement lottery funds for class size reductions. So, next year, it is conceivable that the General Assembly will use money from the general fund to supplement lottery revenues earmarked for BOTH class size reductions and school construction.
