Bill moves gambling money to TOPS

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Challenging what he calls misleading promises from 20 years ago, Rep. Franklin J. Foil, R-Baton Rouge, is betting he has a way to save TOPS, the publicly funded scholarship program for Louisiana students attending college in-state.
House Bill 91, the latest on a list of measures to resuscitate TOPS, whose cost has been spiraling out of control which, in turn, has prompted awards to dwindle this academic year, dedicates a portion of riverboat gaming revenues to TOPS.
With a projected 2017-2018 scholarship shortfall, Foil said the $400 million riverboat gambling harvests annually is “more than enough” to patch holes in TOPS funding.
HB91 would establish a TOPS Gaming Income Fund to act as a “special treasury fund.” This means that, after riverboats send their gambling franchise fees to the state, the Office of the Treasurer would deposit money in the new fund to cover any TOPS deficit.
Present law provides that these 15 percent franchise fees on net gaming proceeds be deposited into the state’s general fund. Foil’s bill would reallocate those proceeds to the TOPS Gaming Income Fund.
Here’s how it would play out: If TOPS is fully funded by the Legislature through the appropriations process, the state would not use any riverboat revenues for TOPS in that that particular year. If, however, there is a shortfall, the TOPS fund would be available to make up for the deficit.
When the Louisiana Legislature legalized gambling in the early ‘90s, there were strings attached – including a public promise that gambling revenues accrued would be used for education.
Of the riverboat gambling franchise fees, which go back to the state, only 25 percent go to education while the remaining 75 percent of the fees are dumped into the state general fund. Because TOPS is education-related, Foil said, he thought it made sense to dedicate part of the revenue to the popular Louisiana scholarship program.
“You look at other gambling programs we have, such as the lottery – almost all of that goes to education,” Foil said.

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