South Florida parimutuels sign a contract pledging 30 percent of their take for education if voters allow them to have slot machines.
By ALISA ULFERTS
Published October 28, 2004
TALLAHASSEE - To quell doubts that slot machine profits would actually go to education if voters approve a ballot initiative, South Florida parimutuel facilities signed a contract Tuesday guaranteeing 30 percent of their take to the Florida School Boards Association.
The association would distribute the money, estimated at $300- to $500-million a year, to all 67 school districts, using the state education funding formula.
The contract is aimed at blunting recent reports that state lawmakers can't be counted on to tax slot machine profits if voters approve Amendment 4 next Tuesday.
The amendment would let residents of Broward and Miami Dade counties vote on allowing slot machines at the horse and dog tracks and jai alai frontons - seven in all - in their counties.
Proponents say it could raise as much as $500-million a year for Florida schools. But the amendment would not require lawmakers tax slot machines, and legislative leaders told the St. Petersburg Times last week that a new tax is unlikely.
Supporters, including several education groups and former Florida Education Commissioner Jim Horne, say the contract ensures more money for schools.
"We are taking this out of the hands of the Legislature and putting it in the hands of the people," said Daniel Adkins, vice president of Hollywood Greyhound track.
If lawmakers decide to tax slot machines at less than 30 percent, the contract requires the race tracks to make up the difference to the School Board Association.
The amendment requires that slot machine taxes supplement public schools funding.
Adkins and other proponents say 30 percent would raise at least $500-million, though state estimates put the figure closer to $300 million.
An advisory board of educational leaders would create guidelines for spending the money.
Opponents of the measure scoffed.
"First, the backers of Amendment 4 want us to believe that bringing more gambling to Florida will somehow help our schools," said Rep. Randy Johnson, R-Celebration and chairman of No Casinos, which has successfully fought past gambling efforts. "Now they want us to trust that race track owners will voluntarily give away millions of dollars and that an unaccountable Tallahassee lobbying organization will ensure that the money will be properly spent."
Proponents say either party can sue to enforce the terms of the deal.
Amendment 4 proponents say the contract would prevent a repeat of the state Lottery, which Florida voters approved in 1986 to supplement education funding only to see legislators use it to replace money spent on other things.
"I think the audit trail will be very clear and easy," said Wayne Blanton, executive director of the School Boards Association.
Meanwhile, slot machine proponents accused the Seminole and Miccosukee Indian tribes of secretly funding a mysterious group running ads against Amendment 4.
The ads say the measure would lead to casinos across the state, though it actually limits to slot machines to two South Florida counties.
It's unclear who is behind the political action committee "No on 4" because it is so new that campaign finance reports, which detail who gave money and how it was spent, may not be available until after the Nov. 2 election.
Both Indian tribes run casinos and have machines similar to slots that are a primary source of revenue.
Proponents offered no proof of their allegation that the tribes are funding the opposition.
The tribes could not be reached for comment.
Passing the amendment would create new competition for the tribes but also could clear up lingering legal questions about the legality of slot machines on their reservations.
Tribes can engage in any form of gambling legal in their state.
The Seminoles, for example, can legally have poker rooms at their casinos because small-stakes poker games are legal in Florida.
Gov. Jeb Bush, who opposes expanded gambling and Amendment 4, has refused to negotiate an agreement to allow the tribes to have slot machines.
The tribe calls its machines video lottery terminals, which operate like slot machines except that gamblers bet against each other instead of against the house.
The tribe has said its video slot machines are legal because they spit out a paper receipt, not money.
Any tribal agreement with the state could involve state taxes on the tribe's slot revenues and increased regulation.
Johnson said he doesn't know if the tribes are behind the opposition.
He said he was approached several times this year by people who said their unnamed clients were interested in contributing to No Casinos.
Johnson said he told them he'd be thrilled to take the money if it didn't come from gambling interests.
He said he never heard from them again.
"If they were concerned enough to hide their decision then that's reason enough for us not to do business with them."
