Consider gambling to fill Texas budget hole

The business tax approved in a 2006 overhaul of school finance laws is a failure. Designed to pay for a one-third reduction in property taxes, the new business tax is not producing enough funds to make the maneuver revenue neutral.

And lawmakers know future budgets will have painful shortfalls if action is not taken to fix the problem.

The Legislature's failure to address the problem in the 2012-2013 biennium is water under the bridge.

But now leaders must look ahead at ways to fund the state's growing education and health care costs.

Lawmakers' tax aversion isn't likely to be easily overcome, but Texas could bring in new revenue to fund crucial programs by legalizing casino gambling at several specified locations, along with slot machines at pari-mutuel racetracks.

Polls released during the legislative session showed that a large majority of Texans felt voters should be given a chance to decide the gambling issue.

And gambling supporters note that a 2007 report showed that Texans spent $2.4 billion gambling in other states.

Those funds could stay here — spurring economic development and providing a significant new revenue source — if Texas voters approved casino gambling.

We urge Lt. Gov. David Dewhurst to name an interim committee to study the pros and cons of gambling so the facts will be on the table when lawmakers meet again for the 2013 legislative session.

The Legislature adjourned this year with a major and permanent hole in the state budget that must be filled. Although it will not solve the full problem, gambling could play a significant role in generating revenue for the state.

The issue should be fully examined and aired during the interim.

mysanantonio.com