Prop. 1C will increase the performance and accountability of the state lottery and bring immediate funding to the state without raising taxes. By modernizing the lottery, Prop. 1C will immediately raise $5 billion in new revenues to immediately help with this year’s budget deficit. The measure also guarantees that public schools will receive the same amount of funds they currently receive from the lottery. In fact, Prop. 1C takes education funding out of future lottery proceeds and places that money under the Prop. 98 minimum school funding guarantee. So schools will actually receive more money in future years due to cost-of-living increases. If Prop. 1C fails, there will be a $5 billion hole in the state budget, meaning schools and other programs could face additional cuts.
How will it increase performance and accountability? How will it "immediately raise $5 billion in new revenues" without raising taxes? Since lottery money was supposed to line our school hallways will gold, why should we believe this law will solve our problems when the last one didn't?
I thought perhaps I should look elsewhere and see what 1c actually does. The union rag doesn't give us the whole story:
• Authorizes the state to borrow $5 billion against future California Lottery profits.
• Gives the California Lottery more flexibility to increase the amount of money returned to players as prizes.
Ah, so it "immediately" raises money by borrowing.
In a page 30 story, ole Si Se Puede himself commends the governor and legislative "leaders" for "having the courage to support revenue increases". It doesn't take"courage" to support revenue increases; heck, I support revenue increases. What I don't support is tax increases, which is what Si Se Puede really meant. The new budget includes a 1 percentage point sales tax increase (almost a 14% increase), almost doubles the vehicle license fee, and tacks on a .25% "surcharge" to the state income tax and a .15% tax to pay for more law enforcement. That is the "revenue increase" of which he spoke. It takes no courage, even and especially in California, to raise taxes.
But it should. It should be pitchfork time.