While it’s possible the Governor might get his basic funding scheme through, I’m assuming it won’t work like he’s proposed from the financial end. If that’s the case, then how can one look to utilize similar tools to achieve some of the ends in the program.
The reality is the lottery has always been a shell game so figuring out how to dedicate it to an educational source means dedicating it to a specific program. This also means that whether the lottery is leased or maintained by the State Government or a chartered government body those funds might not need to be steady, making upfront payments less odious for long term results.
Specifically, I’m thinking of Art Rolnick and Rob Grunewald’s proposal to create an endowment in Minnesota that leads to a more parental choice oriented Early Childhood Education system. Instead of direct funding in a program like Head First, an endowment fund can provide funds to families who need help and help to accredit the early childhood care and education providers to ensure all programs receiving scholarship funds are high quality programs.
The endowment would allow for both private contributions and federal matching money while also getting a start from the state. If a lease of the lottery was taken all upfront, then the money could be put in the endowment and produce future returns. Using such a system, not all that different from the $650 million annuity idea, one could make a strong case a lease has a positive effect on future budgets.
Realistically, the above won’t mean a $10 Billion payday because the lease would be more limited, but it might reduce the overall need for funds by building in public-private partnership and federal government matching funds.
A similar endowment could be started with a text book revolving fund as well, though the public-private partnership wouldn’t be the same. Further making both ideas more attractive to me is that the endowments would be given a mission and then could implement it according to technical criteria, not upon the horsetrading for school funding in the Lege.
Finally, an endowment for a construction fund could be created as well. One of the complaints of Republicans in the Lege regarding the funding. What about modifying the above and making this an argument for moving the lottery dollars to specific educational uses and then, while I’m still skeptical, sell it in a similar plan to what the Governor has proposed and create the above funds, a Construction bond issue, and then an annuity that can go longer than 2024?
Increases in the foundation formula and special education spending would have to be found elsewhere, but we also end the shell game of the lottery and a more sustainable situation could be created.
It’s not that state assetts are being utilized to provide more revenue, it’s killing the future value of those assetts that puts the state in tough long term financial conditions. The problems have been occurring for years so blaming Blagojevich for the basic problem is silly, but as I said nearly 4 years ago on this blog, he’ll probably keep it up. Some of the above changes could improve the situation slightly, but still means we don’t have enough for schools that are in trouble.