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In these times of tight budgets, states must look for new sources of funding education. Proceeds from state lotteries are seen as a way for states to raise money without raising taxes. As of February 2006, according to state lottery Web sites, 24 states earmark lottery proceeds for education funding. In an additional 18 states and the District of Columbia, lottery proceeds go into the state General Fund, which may be used to fund education.

Proponents and critics of using lottery proceeds to fund education both rely on many arguments. Proponents argue it is better to regulate inevitable gambling by citizens and allow schools and students to profit from such gambling.

Along with the argument of disintegrating morals, critics say lottery revenues do not help finance education in the long run. When states rely on lottery profits, they divert general tax revenues to other areas; when gambling proceeds dry up, lawmakers must raise taxes to make up the difference.

 

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