Alabama is one step closer to creating a lottery after the state Senate approved a bill authorizing the creation of one this past weekend. Passing by a vote of 21 to 12, the Senate’s proposal would allocate $100 million in revenue each year to Medicaid, which faces a $70 million shortfall in fiscal year 2017. An additional 10 percent of revenue would be earmarked for the General Fund budget, while the remainder would go to the Education Trust Fund.
Friday’s vote comes after the legislature spent a majority of the week debating and rejecting previous lottery proposals. The majority required to pass the bill was made up of 15 Republicans and 6 Democrats. Ten Republicans, 1 Democrat and 1 independent opposed the measure.
The Senate’s bill still has a long way to go. Before it can make it to Governor Bentley’s desk, it must pass in the Republican-controlled House, whose leaders have expressed opposition to such a plan. At a joint Republican Caucus meeting last Wednesday, members called for instituting an un-earmarking plan in place of a lottery.
Alabama has restrictions on where its tax revenue can go. Ninety-one percent of taxes received have a predetermined destination before the legislature meets to craft the budgets. Republicans argue that removing some of these restrictions could prevent funding shortfalls, while Democrats fear that some areas of the budget – mainly education – could be raided.
Even if the new lottery bill passed, it would not go into immediate effect. Instead, it would become a proposed state constitutional amendment to be approved by the voting public. Such an amendment would appear on the Nov. 8 general election ballot only if the legislature passes a bill authorizing a vote by Aug. 24.
Alabama is one of six states in the country that does not have a lottery for government revenue. In 1999, former Democratic Governor Don Siegelman proposed a lottery that would provide revenue to the Education Trust Fund. Voters did not approve the constitutional amendment, with 54 percent opposed and 46 percent in favor.
