Maryland Casino Education
Maryland would keep about 67 percent of the revenue from slots, with most - roughly half of all casino revenue - going to an Education Trust Fund dedicated to schools.
@JakePerperInstead, the state has increased education spending by over $127 million on top of all revenue brought in by the Maryland casinos. Operating Budget analysis on the Maryland General Assembly website provide the following information on state spending (figures in millions, based on fiscal year spending): FY 10 actual education spending $5,230.619. Last year, during the consideration of the “Casino Lock Box for Education” referendum, a skeptical Baltimore Sun editorial explained how easily the “Lock Box” could be breached, commenting: “We hate to break it to you, Maryland, but you’re being taken for a ride again.” Truer words are rarely spoken by the Sun. Maryland Education is a Top Priority The Education Trust Fund represents roughly 30 percent of the entire casino gaming revenue. Earlier in 2019, Maryland Gov. Larry Hogan pushed legislation for the Education Trust Fund and the education funding bill without a required signature. Maryland has opened a number of casinos since former Democratic Gov. Martin O’Malley okayed casino gambling in 2008, and the Education Trust Fund has received roughly $1.7 billion from casino revenues. Many of the state’s public schools haven’t seen an increase in funds however, because the law does not require the gambling growth to.
August 16th, 2019 - 02:30pm@JakePerperThe state of Maryland had quite the fiscal year.
On August 12, the Maryland Lottery website announced via press release a number of $1.31 billion for the 2019 fiscal year in its annual report. Of that money, Maryland’s casinos took in a record $542.7 million to fund state education.
In terms of total gaming revenue, the six casinos in the state (Rocky Gap Casino Resort, Horseshoe Casino Baltimore, Hollywood Casino Perryville, Live! Casino & Hotel, Ocean Downs, MGM National Harbor), added a whopping $1.76 billion which was $81.4 million more than 2018.
Breaking Down Maryland Casino Revenue
The record-breaking $542.7 million put towards the Education Trust Fund was up $46.0 million from the 2018 fiscal year. According to WAMU, the money made contributes to the educational reform efforts recommended by the Kirwan Commission. Though the state's casino numbers were down in June the fiscal year was very successful overall
The Education Trust Fund has seen just north of $3.0 billion in contributions since the very first casino, the Hollywood Casino Perryville, launched in September 2010.
The Maryland Lottery says that the ETF supports early childhood, public elementary and secondary education, public school construction and capital improvement projects.
Of the revenue generated, $92.8 million went to local aid which was split between local jurisdictions and local impact grants.
Also, $76.6 million went to Maryland’s horse racing industry which was split between the Horse Racing Purse Dedication accounts and the Racetrack Facility Renewal. Finally responsible gaming programs received $5.3 million.
The newest casino in Maryland, the MGM Grand National Harbor which launched in December 2016, has been a true player in the market.
It has contributed just north of $277 million to Maryland with Maryland Live Casino coming in a close second at $243 million. Horseshoe Casino came in third with more than $98 million.
“We are a significant contributor to funding, but we are by no means the bulk of the funding,” Director of Maryland Lottery and Gaming Agency Gordon Medenica told WAMU 88.5. “What the lockbox does is make sure that the casino money supplements education funding and does not supplant other funding sources.”
Maryland state officials will be using the lock box to help pay for the first two years of recommendations made by the Kirwan Commission which will total a whopping $725 million.
On top of that, $130 million more is dependent on the representatives discovering a new source of revenue for Maryland.
Maryland Education is a Top Priority
The Education Trust Fund represents roughly 30 percent of the entire casino gaming revenue.
Earlier in 2019, Maryland Gov. Larry Hogan pushed legislation for the Education Trust Fund and the education funding bill without a required signature.
“Education is our top priority, and with the passage of the lock box amendment last year, our students and classrooms will benefit from a contribution of nearly $543 million to the Education Trust Fund,” Hogan wrote in the Maryland Lottery press release.
All in all, the state of Maryland continues to flourish with its rising casino industry. Expect more additions to current casinos and new casinos to pop up soon. The progress is evident.
Check out states where online casinos for real money is legal.
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sharetweetcopy linkLink copied!WRITTEN BY@JakePerper<p>Jake Perper covers casino news for TopUSCasinos.com. A veteran of more than a decade of sports writing, he has covered the Chicago Bears for the Bears Backer blog, and his stories have also appeared on nfl.com, The Tampa Tribune, The Naples Daily News and Bleacher Report. He is also the leas scout for Prep Hoops Florida, based in Tampa.</p>... Read More<p>Jake Perper covers casino news for TopUSCasinos.com. A veteran of more than a decade of sports writing, he has covered the Chicago Bears for the Bears Backer blog, and his stories have also appeared on nfl.com, The Tampa Tribune, The Naples Daily News and Bleacher Report. He is also the leas scout for Prep Hoops Florida, based in Tampa.</p>... Read MoreARTICLES YOU MAY LIKE
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The highly controversial Baltimore Sun has an article by Luke Broadwater and Erica Green pushing teacher union talking points in an attempt to undermine Governor Larry Hogan. They suggest our schools are not receiving a promised expansion in revenues from Maryland casinos. The article is filled with fuzzy math and completely misleads the readers on education funding and casino revenues.
There are many things wrong with their central argument:
In the seven years since the first of Maryland’s six casinos opened, they have pumped $1.7 billion into the state’s Education Trust Fund — the financial windfall that advocates for gambling promised would go to the state’s public schools. But over that time, state funding for public schools has increased by less than half that amount — and some jurisdictions, including Baltimore, have suffered funding cuts.
The numbers are not based on reality. Instead, the state has increased education spending by over $127 million on top of all revenue brought in by the Maryland casinos.
Operating Budget analysis on the Maryland General Assembly website provide the following information on state spending (figures in millions, based on fiscal year spending):
FY 10 actual education spending $5,230.619
FY 11 actual education spending $4,876.168 (change -354.451)
FY 12 actual education spending $5,595.815 (change 719.647, total 365.196)
FY 13 actual education spending $5,447.325 (change -148.490, total 216.706)
FY 14 actual education spending $5,581.049 (change 133.724, total 350.430)
FY 15 actual education spending $5,751.551 (change 170.502, total 520.932)
FY 16 projected ed spending $5,818.305 (change 66.754, total 587.686)
FY 17 projected ed spending $5,905.108 (change 86.803, total 674.489)
There are no exact figures for FY 16 because the current budget analysis has not yet been released. FY 17 will be a projected until the year has finished and all changes can be accounted for.
During Governor Hogan’s administration, education revenues have increased by $153.557 million.
Here are the Education Trust Fund Revenue numbers:
Between Fiscal Years 2012 and 2013, revenues increased by just under $200 million. Between Fiscal Years 2013 and 2014, revenues increased by less than $50 million. Between Fiscal Years 2014 and 2015, revenues increased by roughly $60 million. They were flat between Fiscal Years 2015 and 2016.
The various increases in casino revenue represent the amount of money brought in by the casinos. Revenue, as a whole, is flat. The only increases in revenue were based on an expansion of gambling: opening of a new casino, adding table games, and other changes.
In FY 2012, education spending was increased by $719 million when casino revenues were expected to bring in over $200 million. However, FY 2013 education spending was decreased by $148 million because the casinos actually only brought in $100 million and other revenue was down. Discounting that, only the loss of $48 million can be attributed at this point.
Ultimately, casino revenue shows up in the next budget. In FY 2014, education then increased by $133 million as casino revenue increased $190 million. That is a difference of $57 million, or a total of $105 million money from casinos possibly diverted from education spending.
By FY 2015, education spending increased by $170 million as casino revenue increased by $30 million. That is a $140 million difference, which means that education money increased by the $105 million not previously spent and another $35 million from other funds.
This change becomes greater in FY 2016 with a $66 million increase in spending and a $60 million increase in casino revenues. This means that $41 million were being taken from other funds. By FY 2017, the education spending increased by $86 million with no revenue increase, representing a $127 million increase in education spending from other funds.
Taken in a different way, Broadwater claims that Education Trust Fund Revenue has increased $1.75B since 2010. Taken together, the total education spending increase is $2.358B (each year subtracted by 2010’s figure then added together). Based on that calculation, education spending has increased by $600 million above what casinos have brought in.
Taken side by side, education spending has dramatically outpaced the increase in casino based revenues because there is no possibility for expansion once the National Harbor Casino opens unless a 7th location is added. Under Governor Hogan, education spending has increased by $127 million when casino revenues are discounted.
The only reason to make outright false claims about education spending is to put pressure on Governor Hogan to increase his already record education spending. It also allows them to support the possible candidacy of former Delegate Healther Mizeur, who has no reason to be quoted in an article on current spending.
Desmond Smith
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