Wednesday, September 17, 2008

Peddling: It's for the Children


Joan Borucki, the director of the California State Lottery was on Hedgecock’s show the other day talking about… the state lottery.

We came in half-way through the interview so the remainder of this post cannot be held to actual veracity as performing due-diligence to document the same would’ve required note-taking at 60+ on the 94 and, hey… we’re all about safety so just cut us some slack and give us the benefit of the doubt.

As far as we could tell, the purpose for Ms. Borucki’s visit was part of a charm offensive to get the state lottery charter amended to reduce the amount of the Lottery’s revenue that goes to public education from 34% to 28%. Whaaaaa….?

(inhale) Given California’s (slight pause, then deep, harrumphing exhale) criminally under-funded education budget, how is this person, Joan, not burned at the stake for supporting such blasphemy?

Well, as she explained, she has gone around the country studying the more successful state lotteries and came to the conclusion that she could increase participation and thus revenue if she increased the odds of winning…. a little less quantity in the individual payout but more frequent payouts.

She proposes to increase the amount of revenue that goes to Lottery winner payout from 50% to 60% and cut into other areas as detailed above to cover this increased payout. She believes this increased payout will double the Lottery contribution to the education rolls from $1.1 bil to 2.2 bil, annually.

To paraphrase: “If I can increase the perception of a better chance at winning and actually deliver on it, I will be able to draw more people in and/or get these same people to spend more money on the Lottery, thus generating more overall revenue.”

Please substitute “getting high” for “a better chance at winning” and “my product” for “the Lottery” and it won’t take a rocket scientist to determine we have two closely-linked psycho-social phenomena at work here.

But you knew that already. That’s why you read this blog.

And allow us for a moment to get off our high horse as we have been consistent critics of the Lottery that preys on the economic lower classes. Since these same economic lower classes don’t pay that much, relatively speaking, tax-wise, perhaps this is the proper mechanism to get them to pony-up their share for public services.

Afterall, it’s about fairness and social justice, is it not?

Bash us if you will but remember, in doing so you advocate depriving a child an education. For shame….

4 comments:

Anonymous said...

Alot of people havent had the experience of a chance for winning. Maybe we should give the first 10 scratchers for free?

Making the casinos pay at the buffet,
'Dawg

K T Cat said...

The California Lottery - a tax on the stupid.

Ohioan@Heart said...

Before you dismiss her theory so fast, think. It is possible that it will work.

Yes, it is counter intuitive, but no more so than "reducing taxes will increase government revenues". They are the same idea.

Understand, I am an experimentalist. Each recent tax rate decrease has been followed by government revenue increases (although it is impossible to determine what the revenues would have been in the absence of the tax reductions). Also, I disagree that maximizing government revenues is the proper thing to do, so I'm for tax cuts anyways.

As to her idea, again I'm an experimentalist, if other states have shown that higher payout rates produce more net revenue, then let's try it.

Dean said...

O@H, I'm definetely not dismissing her theory.

Currently, my mood is "contemplative".

I'm kind of a "left-side of the (Laffer) curve" guy myself.

However, I'm struggling with the moral aspect that KT and 'Dawg, lay out, above.

As in, Is it right for the government to knowingly take advantage of people in this regard?

Because that is what she is evangelizing.

Whatever, it is a fascinating topic because of all the different factors at play.

Signed,
Ruminating in Rolando Beach