Tue, Nov 10 2009

Published: January 06, 2009 03:10 am    PrintThis  

New Hampshire must choose gambling or tax increases

Roger G. Wells

Now that we in New Hampshire are starting the new year and a new legislative session, it is time to make some choices as to where our state is heading financially. While we are looking at as much as a $400 million to $500 million deficit, are we willing to see our property taxes skyrocket further? Are we willing to finally accept an income tax or a sales tax? Are we willing to look at expanded gambling as a solution?

After a 16-month study by a subcommittee of Ways and Means, the committee voted "To recommend the introduction of future legislation for the use of Video Lottery Terminals." While the 9-8 vote was close, had all members been present, the outcome would have been three votes more for the majority opinion.

In other words, after hearing the information presented, the vote would have been 12-8 for opening a serious debate on whether or not gambling should be considered as a revenue source for our state.

While gambling is an easy target for some well intentioned people to be against, the facts do not support the perceived "evils" that are constantly being disseminated. The bill that was studied would have provided $5 million for treatment programs for addictive behavior, including treatment not only for gambling problems, but also for drug, tobacco and alcohol addiction.

The committee learned that many of these problems are co-occurring; that is, that those who are likely to have a problem with one type of abuse are also vulnerable to gambling.

While it is obvious that many New Hampshire citizens already struggle with addiction problems, the services needed to treat such problems are woefully under funded.

Unfortunately, these people, many of whom already have gambling problems, will continue to be under served until the state finds the revenue sources to fill this gap. The current budget crisis only deepens the hole.

In studying the issues surrounding gambling, the committee found the incidence of pathological gambling problems ranged between 1-2 percent, far lower than addiction rates for alcohol and tobacco.

Information provided by Dr. Clyde Barrow from the Center for Policy Analysis at the University of Massachusetts showed that most people who gamble at casinos or racinos do so responsibly as a form of entertainment.

In contrast, those who play the lottery or buy scratch tickets forego the entertainment component (how long does it take to scratch a ticket?) and make their purchase solely with the unlikely chance of coming out of the gas station or variety store with more money than they had when they went in. The many polls taken in New Hampshire consistently show that the public favors this as a revenue source by numbers between 70-80 percent.

The data also showed that "social costs" of casino gambling were much lower than perceived by opponents. The fact is that our state is experiencing significant "social costs" right now as property tax increases squeeze a growing number of people out of their homes.

Based on data from other states with similar programs, the revenue that New Hampshire would realize was estimated at $250 million to $319 million per year.

If most of that state revenue were directed to education funding, local property taxes in most towns could be reduced significantly, by about one-third.

The report showed that if the casinos were located at the current racetracks in Salem, Hampton, Loudon and Hinsdale, approximately 80 percent of the revenue produced would come from out-of-state residents within a 100-mile radius.

Those who oppose the introduction of gambling say that the gambling industry profits are down. Yes, profits are down for some of the companies. But the latest figures show that total gambling revenues are down about 6 percent (Bloomburg Oct. 15). Profits are down much more, because many companies are involved in building projects and expansion. MGM, for instance, is involved in the largest private building project in the world, the $11.5 billion City Center. That causes profits to be down, but it shows their confidence in the industry.

That is doing much better that GM, Ford, Ann Taylor, Starbucks, Rite Aid, Dillards, Sharper Image, Williams-Sonoma, Eddie Bauer, Talbots, New York Times and Chicago Tribune to name a few of the businesses in serious trouble and many facing bankruptcy. It must be remembered that the state revenue is based on revenues, not profits.

The outspoken opponents of gambling often talk of corruption that may be associated with gambling. The most frequent corruption is usually the vast amount of money sent by gambling interests from surrounding states to politicians in the states considering gambling to prevent it from being successful.

Soon the Legislature and the citizens of New Hampshire will be faced with a choice. Cut many of our existing services in health and human services, environment, mental health, corrections, safety, education and on and on, or look for new revenue.

The only choices are increasing property taxes, institute an income tax, sales tax or introduce expanded legal gambling at those facilities where gambling already exists and maybe consider other possible locations.

My property tax this year will represent approximately 30 percent of my total income. I cannot afford to continue to live in the state without relief and I feel that I am not alone in this situation.

Those who oppose the gambling revenue solution, therefore, must be in favor of increasing property taxes and/or instituting income or sales taxes. This discussion must take place and the citizens must voice their preferences to their legislators.

Remember: it's increasing the property tax, establishing an income tax or sales tax or gambling.

Choose one. "None of the above" is not one of the choices.

ÔÇ¢ÔÇ¢ÔÇ¢

State Rep. Roger G. Wells, a Republican, lives in Hampstead, N.H., and represents the Rockingham 8 district.

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