colorado community college headmaster grossly overestimated revenue to sell ammendment 50 to Colorado voters.

New gambling revenue falling far short of forecastBy Andy Vuong The Denver PostPosted: 12/20/2009 01:00:00 AM MST

Nancy McCallin, president of the Colorado Community College System, says community colleges may receive just $2 million to $3 million from gambling taxes during the first year of new games and table limits. The 2008 ballot measure that eased gambling regulations was pitched as a way to bolster the ever-slimming budgets of the state's community colleges.

Much of the additional tax revenue generated from higher bet limits, 24-hour gambling and new table games would go to the schools, an estimated $29 million during the first year and $222 million over five years."Anything that's going to add over $200 million over the next five years . . . is very good for us," Nancy McCallin, president of the Colorado Community College System, said in November 2008 shortly after it was disclosed that voters had approved Amendment 50.

Now, more than five months after the gambling changes took effect in July, McCallin says community colleges may receive just $2 million to $3 million from gambling taxes during the first year. Despite a sparkling first month, the Amendment 50 changes — which came as gamblers were cutting back on casino trips amid the economic recession — haven't boosted revenue by nearly as much as initially projected.

A Denver Post analysis based on the first five months of data shows colleges could receive $4.4 million during the first year, if business stays at the current pace."We knew that it was going to be a year where we didn't have a whole lot of information, and so we knew that any of the projections were going to be a guesstimate, at best," McCallin said last week.Community colleges won't receive gaming funds until September. As required by the measure, the money has to go toward classroom instruction and financial aid.McCallin said she won't make plans on how that money will specifically be used until May, when the budgeting process for fiscal 2011 begins.

This year, state funding for community colleges was cut from $142 million to $106 million, though much of that was made up with one-time federal funding, she said.For fiscal 2011, community colleges face an $11 million cut, with no assurance that federal funding will cover the gap."That's happening the same time when our enrollment is surging, so we're going to see some substantial cuts next year," McCallin said.

Casino revenue is up 8.5 percent this fiscal year, which began in July. Industry officials initially projected growth of 20 percent to 25 percent.In November, only Black Hawk casinos saw a revenue gain, posting a 13 percent increase, according to data released last week by the Colorado Division of Gaming. Central City and Cripple Creek casinos each reported declines of about 5 percent.

Even with lower-than-expected revenue from the changes, there are concerns among historic-preservation officials that community colleges are set to receive too much of the gambling tax. When voters approved casino gambling in Black Hawk, Central City and Cripple Creek nearly two decades ago, the intention was to use the tax revenue to help restore and preserve the historic mining towns.Dan Love, president of the board of directors of Colorado Preservation Inc., said community colleges stand to receive "a disproportionately large share" of the revenue.

As it stands now, existing recipients of gambling tax revenue, which include the state historical fund and general fund, would receive $97.7 million this fiscal year (a 3 percent increase from fiscal 2009), before regulatory expenses are subtracted. Anything generated above $97.7 million is earmarked for Amendment 50 recipients, with 78 percent going to community colleges and the rest going to the various casino cities and counties.

With a projected $106 million in gambling tax revenue for fiscal 2010, based on five months of data, Amendment 50 recipients would receive $8.3 million, before regulatory and other charges. After those charges, the Amendment 50 pot drops to an estimated $5.7 million."We weren't doing this for a single increase in funding," McCallin said. "We were in this for the longer term. And longer term, we know that the gaming industry will turn around as the economy turns around and we'll see increased revenue."

Gambling is not Economic Development

December 15th, 2009 How Has the Recession Affected The Gambling Industry?

The recession has led to many people becoming more conservative with their spending, and this could be bad news for gambling revenues, as casinos nationwide experience huge drops in attendance and overall money spent. In order to combat consumers who are less willing to roll the dice with their dwindling savings, casinos are desperately trying to find ways to stay afloat.Atlantic City Recent numbers out of Atlantic City, the weekend gambling location for New York’s risk takers, have see decreasing returns from last year, taking in 13.4% less this November compared to 2008.

According to a report by USAPlayers.com, each of the cities 11 casinos reported a decline in earnings last month, with the biggest losses experienced in the table games, which saw a 21% drop from last year. Slot machines dropped as well, but slightly less, only 9.5%.Some casinos have cashed in their chips, deciding that they are not willing to continue to take losses in an economy that doesn’t seem will be sending customers back to the craps tables anytime soon.

The Boardwalk Casino, one of Atlantic Cities oldest gambling establishments, will soon hand over its casino to lender Wells Fargo.Las VegasEven Las Vegas isn’t immune to this latest trend, seeing an industry-wide drop in revenue of 11.6% from a year ago. October marked the 22nd straight decline in revenue, reaching its lowest point since 2003.

In an interview with the Las Vegas Review-Journal, senior director of marketing for the Las Vegas Convention and Visitors Authority Kevin Bagger said that while attendance has started to recover, consumers are still spending less.“We’re happy to see the increase in volume, but consumer spending is still impacted by the broader economy,” he said.

Because of the drop in earnings, casinos have been forced to cut down on employees; MGM Mirage laid off over 1,000 of its workers last year. Casinos are one of the major sources of jobs in Las Vegas, employing around 27% of the total workforce, according to author and former Caesar’s Palace gaming instructor Barney Vinson.

Not Recession Proof After AllThe numbers coming out of the gambling industry over the last year seem to disprove the thought that gambling is a recession proof industry.

There are some who claim that even as consumers personal incomes decline and unemployment rises, gambling will remain constant or even increase as people become desperate for quick ways to increase their money. However, with revenue losses forcing casinos nationwide to increase layoffs, and less strict gambling laws leading to competition for traditional gambling centers like Atlantic City and Las Vegas, it seems the recession may hit harder, and last longer, for the gambling industry.

Here's To You Mrs. Wilkerson

Mrs. Kathy Wilkerson will assume a coordinator’s position at the soon-to-be re-engineered Monroe, News Star according to well placed sources in Ouachita Parish, Louisiana.

Like Gannett’s Hattiesburg, MS, American is to its Jackson, MS, Clarion Ledger, the News Star is scheduled during the next calendar year to be down-sized to just a bureau of the much more important Shreveport Times.

It’s sad for Ken Stickney, who is really running the News Star day and night while Mrs. Wilkerson and her hubby are doing the North Side Monroe social scene, most recently in ULM’s Brown Hall Row I for the Tom Friedman talk. He will probably be down-sized as well after the publisher who delayed his long over due retirement finally departs N. 4th Street. It’s a second smack down for him.

Maybe after the dust settles, Ken and Kathy can get on the Louisiana State Teat with their spouses at Delta Community College and the University of Louisiana Monroe, respectively.