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P/SUNNY Temp: 67 °F Wind: W at 5 mph Wednesday, April 9, 2003 SECTIONS Home Page Local News Sports Business Obituaries Life Opinion - Politics AP News Weather Classified Archives Site Map EXTRA HomeLife Magazine W3 Magazine Jobs @ Mail Tribune Tempo A & E Oregon CarZone Wellness Connection Real Estate Newspaper in Education Prime Times Outdoor Journal Personals Movie Times TV Times E The People CLASSIFIEDS Find a Car Find a Home Find a Job Find Everything E SOUTHERN OREGON Automotive Communities Entertainment Publications Recreation Calendar ABOUT US FAQ What's New Advertise Home Delivery Classified Ad Contact Us Media Kit Email Story to a Friend March 26, 2003 Rainy-day fund based on lottery questioned By JILL BRISKEY Mail Tribune A proposal to boost Oregon’s rainy day education fund by shuffling lottery dollars has sparked concern among local school board members. State Rep. Dennis Richardson, R-Central Point, formally introduced a bill in the House last week to increase from 18 percent to 30 percent the amount of lottery proceeds earmarked for the education stability fund. Originally an endowment for schools, the fund withered last year as Oregon voters took $150 million from it to help balance the state’s budget. Richardson’s proposal would take the additional allocation directly from the lottery’s funding of school operating budgets, which have already been hard-hit by the state’s financial crunch. Voters would have the final say. "I’m all for a rainy day fund," said Medford school board member Peggy Penland. "But you need to direct and account for that money (taken from the general fund). Even in good economic times, there isn’t enough funding for education." Richardson sees the bill as a blueprint for the future, and added that the proposal wouldn’t go into effect until two years after Oregon’s economy improves. It would be triggered by a 3 percent increase in personal income, he said. "That’s exactly the attitude I’m trying to deal with," Richardson said of Penland’s opinion. "During times of economic recovery, we have short memories. We need to do this now. "The economy will be better; there will be more money to fund education through the (state’s) general fund." During the 2001-03 biennium, the state will receive approximately $691.3 million in lottery revenue. The Legislature will funnel $436 million, or 63 percent of the total, to public education. In the last fiscal year, the Oregon Lottery returned 95 percent of sales to the public in the form of prizes ($918.3 million) and profits ($288.2 million). Factoring in inflation, Richardson estimated that the education stability fund will grow to $118 million between now and 2005 based on annual allocations from the lottery fund. If the legislation is approved, Richardson said the fund would spike to $198 million by 2005. Like Penland, Phoenix-Talent board chairman Richard Nagel said increasing the rainy day fund is important. But the resolution’s proposal to strip money from the school’s general funding has him concerned. "It sure warrants consideration," Nagel said. "I still think the Legislature needs to look at the overall funding picture. ... We can’t just put blinders on. We need to look at everything." If the bill passes the state House and Senate, Oregon voters will decide its fate in the next primary election — possibly May 2004. Reach reporter Jill Briskey at 776-4485, or e-mail [email protected] Printer Friendly Version Email Story to a Friend Subscribe Archive: Click to Search Mail Tribune Home Local News | Sports | Business | Obituaries | Life Opinion - Politics | AP News | Archives | Site Map E Southern Oregon | Classified Copyright © 1997-2003 Mail Tribune. All rights reserved. Privacy Policy | Terms & Conditions Website Feedback A D V E R T I S E R S