Question 1: Four Facts About the Casino Lock-Box Initiative

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by Llew Brown and David Duba

The 2018 mid-term elections will be held Tuesday, November 6th, 2018. In this election cycle, voters will make a number of choices that will impact public education in Maryland for years to come. Perhaps it’s poetic justice that the first amendment listed on the ballot is related to education funding, a key issue across the country in 2018. This past spring, teachers participated in large scale protests and went on strike in six separate states. These protests were inspired by wages being below the cost of living for school personnel and inadequate budgets for classroom supplies. They coincided with an incident here in Prince George’s County involving the inflation of pay for central office employees, and the early closure of schools throughout the county during the first week of classes due to an inability to adequately cool aging facilities. Given the array of issues facing public education, it’s reasonable to ask, “Where will money to fix public school issues come from, and how can we ensure adequate and equitable funding?” Read further to review a bit of history related to the use of casino funds, and the potential impact of question 1 on the future of public education funding in Maryland.

What is Question 1?

Question 1 on the ballot proposes a constitutional amendment that requires the governor to use casino revenue to supplement funding for prekindergarten through grade 12 in public schools, beyond the minimum levels prescribed by current funding formulas. Sometimes referred to as the “casino lockbox” amendment, passage of this ballot initiative could steer millions of dollars from casino revenues to fund public education.

Didn’t the law already require casino money to support education?

In 2008, voters decided to legalize gambling in the state of Maryland. Revenue from taxes on gambling was since added to the state budget each year. However, according to Maryland Comptroller Peter Franchot, general tax revenue that was used to fund education prior to 2009 has been regularly diverted from education funding as casino tax revenue has increased. Money that used to be spent on education from the general tax revenue is being diverted to other projects like road construction and employee salaries. Put another way, gambling revenue has replaced education funding, not increased it. By voting yes on Question 1, money from casino revenue will be used to supplement funding for education, per an amendment to the Maryland constitution.

How much money is at stake? How can the money be used?

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