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Governor signs Hayashi's bill to increase school funding from lottery proceeds
Measure will provide some relief to schools, Assemblywoman says

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Governor Arnold Schwarzenegger has signed a bill authored by Assemblywoman Mary Hayashi (D-18th) that will help increase funding for schools through changes to the California State Lottery.

Hayashi, whose district includes Dublin, said the bill, AB 142, makes changes to the Lottery that increases the percentage of revenue that goes back to schools.

"California's budget crisis has had a devastating impact on education," she said. "Supporting our schools must be a priority, and according to the Legislative Analyst's Office, AB 142 will help increase public education funding by hundreds of millions of dollars per year."

"While there is much more to do, this bill will provide some measure of relief to our schools," she added.

AB 142 revises the California State Lottery Act, increasing the percentage of lottery revenue that goes back to the public by reducing administrative expenses from 16 percent to 13 percent. The bill brings California's lottery structure in line with other large state lottery systems, including Texas, North Carolina, and Florida, which have shown an increase in revenue through similar changes.

AB 142 passed with bipartisan support, including a unanimous vote in the Senate and a 68 to 1 vote in the Assembly. As an urgency measure, the bill is effective immediately.

Hayashi is the chair of the Business, Professions, and Consumer Protection Committee and serves the 18th Assembly District, which includes Dublin, San Leandro, Hayward and parts of Pleasanton, Castro Valley and Oakland, as well as the unincorporated areas of Ashland, Cherryland, San Lorenzo and Sunol.

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Comments

Posted by tax revolt 2, a resident of the Country Fair neighborhood, on Apr 12, 2010 at 4:05 pm

The California PTA and SEIU were supporters of this legislation (Web Link). I would hope that Debbie Look, Director of Legislation, and member of the California PTA Board of Directors would not be looking for ways to increase education funding by such non-productive means as the lottery/gambling.

It would take $1B more in lottery revenues to generate the several hundred million Hayashi is promising. This $1B is discretionary spending that will primarily come from those with lower incomes. This will result in $1B less in retail sales, with $100M less in sales tax revenue. Surely the PTA could be using its time more wisely to support legislation that would help improve society rather than encourage gambling.

I encourage everyone to read the analysis (Web Link) including the portion that debates whether this legislation should have been submitted to the voters for approval. "Legislative Counsel has long held the opinion that any changes to the Lottery Act that divert money from education need to go back to the voters for approval."

Unfortunately the California PTA has supported these manuevers and legislation to the overall long-term detriment of California.


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