Paul Hubbert, executive secretary of the Alabama Education Association, and Rep. Richard Lindsey, D-Centre, chairman of the House Education Appropriations Committee, this week said new taxes on gambling may help state budgets" in the 2010 budget year.

The $459 million "rainy day" fund for education that voters approved in Amendment 1 on Nov. 4 likely will be quickly used in the coming year, Lindsey said.

Lindsey said the education budget in 2010 would probably have to be trimmed.
School Superintendent Joe Morton said Gov. Bob Riley this month will likely begin the draw down of the $459 million budget. Lindsey said that may not be enough to avoid further cuts in the 2009 budget.

"If the situation does not improve before April or May 2009 when the Legislature is finishing the fiscal 2010 budgets, education could very likely see a fiscal 2010 budget that is smaller," Morton said. "But this can change if, since gambling revenues are up, we can get some funds from taxation there."

Alabama ranks 46th among states in revenue rose from gambling, although gambling, in one form or another is prevalent throughout the state. That means it will likely remain as a low-tax state, even if taxes go up a bit.
The state last year collected $377,824 from the only gambling law it has, the pari-mutuel pool tax - a 1 percent tax on dog race track owners on the pari-mutuel pool on all races.

Lindsey said Riley "missed a golden opportunity" early in his first term by failing raise revenues from gambling.
"I hope the Riley administration will take a leadership role," he said. "It would be well worth the time and effort to try and be successful."

The first step would be to bring all the parties together.
"We're trying to float some ideas on gambling taxes to the Riley administration and legislators," said Hubbert. "We've had some conversations with the administration."

Alabamians rejected a state lottery in 1999, but since then lotteries have been established in Tennessee and casinos operate in Mississippi. Florida and Georgia also have lotteries.

Gambling also has popped up all over the state since 1999 - from Dothan to Walker County. It includes greyhound dog tracks in Birmingham, Mobile, Eutaw and Shorter, an Indian casino in Atmore , and bingo operations thriving across the state.
Some of the operations are protected by state law, and those operated by Indians are protected by federal law and exempt from state taxes.

"Tax collections from individual income taxes grew over 7 percent compared to last November, which reflects the good news on our employment front," he said. "Sales tax collections, however, decreased by 2 percent compared to last November."

Meanwhile, Riley was among 40 governors who met with President-elect Barack Hussein Obama in Philadelphia about federal aid to states. Riley was there to represent Alabama's concerns over medical funding, as Obama supports socialized medicine, rather than the free market approach, current in the U.S.

State governors want Congress to authorize a two-year increase in the federal share of Medicaid, the health program for low-income people.


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