Another View: Rep. Chuck Martin

Lottery Bonuses Hard To Explain To The Voters

By Rep. Chuck Martin

(12/18/07) Over the last several weeks, much has been written about the bonuses given to Georgia Lottery Corporation employees. While I appreciate and respect the efforts of the employees of Lottery Corporation, I cannot explain to the people of House District 47 and Georgia the bonus schedule.

The Lottery Corporation believes the bonuses are justified because more money was transferred to education, even if the statutory percentage set by law was not met. I believe one official of the corporation said something along the lines of this: “percentages are not deposited, but dollars are.” That argument, I respectfully submit, is ridiculous.

For example: if the percentage argument were applied to Georgia taxpayers, each taxpayer would decide a tax percentage acceptable to them as long as they remitted more taxes than last year. No, it doesn’t work like that for taxpayers and it should not for the Lottery Corporation.

Specifically, since the first full year under current leadership (2005 – 2007), the marginal percentage deposited for education is about 10.2%. In the years immediately prior (2000 – 2004), the marginal percentage deposited to education was about 24.9%. (Source: InsiderAdvantageGeorgia 12/11/2007)

Georgia voters approved the lottery based on certain statutory assurances, among them that “as nearly as practical” 35 percent of sales proceeds would go to education programs. In 2007, the percentage going toward education was about 25% and has been decreasing since 2004. In my opinion, that is neither “near” nor “practical” and certainly not bonus worthy!

So the marginal return on lottery revenue is decreasing substantially and the percentage going toward education is about 25%, not the 35%. Yet the Lottery Corporation is giving millions of dollars in bonuses. That’s hard to explain.

Simply put, Georgians deserve a full report and accounting of performances on which the bonuses were based. The Lottery Corporation needs to be accountable to Georgia now!