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ERIC Number: ED380903
Record Type: Non-Journal
Publication Date: 1994-Nov
Pages: 10
Abstractor: N/A
Reference Count: N/A
America's Gamble: Lotteries and the Finance of Education.
Jones, Thomas H.
By the late 1980s, 28 states in the United States had instituted lotteries as a supplemental means of financing public education. This paper presents findings of a study that examined the claim that state lotteries enhance spending for public education. Regression analysis, conducted on data for the year 1987, compared lottery and nonlottery jurisdictions among the 50 states. Four dependent measures--two indicating support for education and two indicating tax effort for education--were regressed on seven state socioeconomic and demographic variables. Two variables indicated the presence or absence of a state lottery and any earmarking legislation. In 1987, 18 states had adopted policies that established public education as a major recipient of lottery revenue. The findings reaffirm the importance of state wealth, as measured by per capita income, in determining support for education. The claim that lotteries influence state aid or school spending was not supported. When per capita income was controlled, the presence of a lottery did not account for a significant amount of interstate variation in school finance. Wealthy states adopted lotteries in advance of other states; lotteries did not make the states wealthy. Finally, the results show that lotteries indirectly reflect the public's perception of the tax burden. It is recommended that states renounce lottery profits altogether. (LMI)
Publication Type: Speeches/Meeting Papers; Reports - Research
Education Level: N/A
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A