Senate passes 500 million dollar lottery bond

[Midtowner]

How do you all feel about this lottery bond for higher ed?

500 million to be paid back over 30 years -- interest alone will be 400 million.

Remember that 45% of the money from the lottery was set aside for higher ed. This is what they want to do with their portion. What do you think?

Personally, I'm not opposed to spending the money on higher education, but I am opposed to method our state is using to spend this money. The $400 mill in interest that will be payed out could go towards more education funding.

Whatever happened to a pay as you go system? Instead of spending money you don't have? I guess investors will be happy.

[Midtowner]

Originally Posted by Patrick

Personally, I'm not opposed to spending the money on higher education, but I am opposed to method our state is using to spend this money. The $400 mill in interest that will be payed out could go towards more education funding.

Whatever happened to a pay as you go system? Instead of spending money you don't have? I guess investors will be happy.

Exactly. Bond issues are one reason that our state is in the financial crisis that it's in. It's how we choose to fund everything! Our state's forefathers wrote into the constitution that we couldn't pledge tax revenues past the current fiscal year. What a great concept that was! I'd very much like to see what % of our tax money goes just to paying interest on bonds. I'll bet if we paid for things up front/as we went, we'd have nearly double the money available.

I'm actually taking Dave Ramsey's Financial Peace University course at the moment, so it's pretty obvious I'm not big on debt. It ends up costing a bundle in the long run. Of course there are certain things you have to borrow money on, like mortgages, but many other things individuals could save for. I'm saying all of this to say that our government needs to practice more saving and less borrowing. Obviously, the Crosstown Project is being payed through a saving program...they're halfway there. Sure, it's taking many many years, but it's a good concept. Why can't all projects be completed like this? Instead of waiting for a highway to completely deteriorate, start putting money aside (and invest it) to fund the highway's replacement 10 years before it actually needs to be replaced. Had we started saving for a new Crosstown 20 years ago, we probably wouldn't have the problems we have today.

We need to practice saving, and spending as you go!

It didn't take them long to misuse the lottery money. It's a regressive tax on the poor. I wasn't for it.

Originally Posted by Rev. Bob

It didn't take them long to misuse the lottery money. It's a regressive tax on the poor. I wasn't for it.

. I could see it coming.

[Midtowner]

Originally Posted by Rev. Bob

It didn't take them long to misuse the lottery money. It's a regressive tax on the poor. I wasn't for it.

Two seperate issues. Are you saying that because it was a "regressive tax on the poor" as you say that it would be misused? Please explain the logical connection if so.

I would simply say that because it will create money, and there is this thing called the "Oklahoma Legislature", that it's practically guaranteed that the money will not be spent in the best way possible.

[mranderson]

On occasion, I agree with Midtowner... Imagine that!

How can the state be misusing lottery funds when none have even been collected yet?

Rev. Bob: It sounds like the same old lame, untruthful excuse many in the religious community spew. Nothing but untruthful stereotype.

Think about it, and turn it into your personal finances. How can you misuse what you do not have yet?

[Midtowner]

Well, I would say that misusing them was a given, only because our legislature would get their grimy paws on the money.

Or perhaps something less strong than "misuse" is in order. Perhaps "squander" or "use in a way that is not the most effective" will be more appropriate?

I do think that the Senate's proposed use for Higher Ed's portion of the money is misguided. Consider you ran your household the same way the Senate would run the state? You just got a new job, but don't know anything but the average salary for individuals in your position. However, you have not been told your own salary. Do you go out and buy a house that you could only afford if you were at the top end of the pay scale for that job?

And then there's the issue of the 30 year note that pays 900 million on 500 million. That's just dumb.

So I suppose the state is misusing the poor's money.

The only poor people that play the lottery or go to casinos are those that make the "choice" to spend their money in those areas.

Back on topic, personally I think it's silly that our legislature is making decisions based on projected revenues. What if those projected revenues don't come to pass?

We shouldn't base our children's future on money that may never come to pass. I only hope the legislature doesn't use the lottery as an excuse to change the law to allow them to reduce funding from the general budget for education.

[Midtowner]

Originally Posted by Rev. Bob

We shouldn't base our children's future on money that may never come to pass. I only hope the legislature doesn't use the lottery as an excuse to change the law to allow them to reduce funding from the general budget for education.

It would take a vote of the people. There was a specific part of the lottery amendment that said that the state couldn't change their funding towards education creating a mandatory "net gain" for education.

I don't think it'll be much more than a drop in the bucket though unless we change the way we spend our money.

Currently, with education, it seems like we're getting a Gremlin for the price of a Ferrari.