WHAT 1C WILL DO: Restructures the state lottery, allowing the Legislature to borrow against future lottery profits.
WHY YOU SHOULD VOTE YES: The plan will bring in significant revenue without generating any new taxes.
Nearly 24 years ago, California voters approved the creation of a state lottery designed to provide funding for public education while offering the lure of lucrative payout prizes to gamblers.
Now, in a bid to stabilize the ailing state economy and close a sizeable budget deficit, the Legislature has proposed significant revisions to this lottery system. And by the looks of it, they might just do the trick.
Under Proposition 1C, the lottery would undergo a makeover aimed at increasing its appeal and drawing in new players. In its current form, the lottery simply isn’t as popular as it has been in the past, and revenue has fallen as a result.
With 1C, however, payouts would be increased and marketing efforts would be revitalized, hopefully rejuvenating profits and pumping more funding back into the state’s coffers.
Which is exactly where it would go. While current lottery regulations require that 34 percent of all revenue be directed toward funding public education, 1C would lift this requirement and the money would go directly into the state general fund.
The benefit is that while funding for education would be retained ‘mdash; and likely even increased if lottery revenue does indeed go up ‘mdash; the state would gain the ability to borrow up to $5 billion against future lottery profits.
It might look like just another quick fix borrowing solution, and 1C will surely signal future costs when it comes time to pay back the bonds that follow this measure, but it’s hard to argue with any plan that translates to more money now, when California needs it most.