Local school districts question sports betting amendment’s financial impact on education

By Roxie Murphy, Assistant Editor
Posted 10/16/24

BELLE — Local school districts are questioning if Missouri Constitutional Amendment 2 regarding the legalization of sports betting will help fund education the way the Winning for Missouri …

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Local school districts question sports betting amendment’s financial impact on education

Posted

BELLE — Local school districts are questioning if Missouri Constitutional Amendment 2 regarding the legalization of sports betting will help fund education the way the Winning for Missouri Education campaign supporters are advertising. The measure will be presented on the Nov. 5 ballot.

The state of Missouri’s funding contribution to public education ranks 50th in the nation and second to last in the United States territories. Amendment 2 supporters claim that the passage of the measure would allow the collection of another 10 percent in new tax revenue and raise $100 million over five years for public education.

According to Winning for Missouri Education commercials, Amendment 2 can be used to pay teachers. Missouri’s educators are ranked 48th lowest out of the 50 states. The group also claims the funds are constitutionally protected to go toward education.

However, many school districts disagree with the rhetoric, and the Missouri Association of School Administrators (MASA) is skeptical of Amendment 2.

Superintendent Dr. Lenice Basham of the Maries County R-2 School District said on Tuesday that MASA, of which the district is a member, believes Amendment 2 legislation is poorly written.

“My understanding is there is nothing written in the bill to collect tax revenue from this,” Basham said. “According to MASA we probably won’t see any money from this unless they can say who is paying the taxes on the gambling. There is little revenue that will come from this bill because it doesn’t outline who is responsible for paying the taxes.”

Basham said the district receives about

The Maries County R-2 School District receives 45 percent of its annual revenue from local funds, five percent from county, 39 percent from state and 11 percent from federal.

“51 percent of the budget is certified salaries and benefits,” Basham said. “Starting pay this year is $38,000. It will increase to $40,000 next year.”

Last year at Governor Mike L. Parson’s insistence, many districts increased the starting teacher salaries to $40,000, or as close as budgets would allow. This legislative session, legislators are attempting to pass Senate Bill 727 which would require a $1,000 increase each year for the next two years and then an annual minimum three percent increase per year. Superintendents are hoping to know more on Thursday. If the mandate passes without financial support, many school districts will struggle. Supporters of Amendment 2 share the narrative that the new tax revenue generated from sports betting will assist to fill the financial gaps.

However, Amendment 2 leaves much to be desired at the implementation level and subsequent collection.

In addition to fears that the new revenue will not be spent on education, Basham said MASA is also concerned Amendment 2 doesn’t detail how the 10 percent taxes will be collected or what fund will tie it to education.

“My concern is probably that they would somehow, like when we got the lottery funds, offset what was coming in and allocate the same amount of funds to us,” Basham said. “There is nothing that says this is new revenue. It could be an offset, which does not increase school funding.”

Missouri’s legislature consistently under funds the education formula, leaving districts to pick up the slack at the local level through local taxes and bonds. The lack of state funding has to be made up at the local level. Without community support, Districts struggle to provide the things they need to serve students.

It’s questionable how much the passage of Amendment 2, even if the source of revenue and collection avenues is written more distinctly, could help public schools. One fiscal note from the Missouri State Auditor’s Office cited the Missouri Gaming Commission observations that gambling operators may be allowed to deduct up to 25 percent of promotional credits such as free play as well as federal taxes. The end result could be zero gaming taxes for sports betting.

Another study released by Winning for Missouri Education estimated each district would receive $36,000 annually from sports betting — a number garnered from breaking down the annual tax estimates by Missouri’s 554 school districts.

All four of Missouri’s major sports teams, the St. Louis Cardinals, St. Louis Blues, Kansas City Chiefs, and Kansas City Royals support the measure. Sports betting companies have contributed about $55 million into the “vote yes” campaigns so far.

If Amendment 2 passes, it will allow anyone 21 years and older to wager on sporting events online, in casinos and in locations where professional teams play. Locations include professional fields, college teams and other competitive events without a cap on losses. Although revenue is taxed at 10 percent, the ballot language only requires the funds to be allocated to, “institutions of elementary, secondary and higher education in the state.” The allocation does not say public education specifically, so it leaves funds open to benefit private and parochial schools, following the recent push to privatize education.

Maries County R-2 hasn’t shared an official stance about its support or lack thereof for Amendment 2. However, Assistant Superintendent Dr. Staci Johnson with the Gasconade County R-2 School District in Owensville and Gerald suggested voters complete their due diligence before casting their ballots.

“Anybody who is supportive of public education needs to make sure they are reading the amendments and doing their research,” she said. “The state of Missouri needs to figure out what they value and start investing in it.”

Ballot language for Amendment 2 is scheduled to be published in the Oct. 23 and 30 issues of The Advocate.