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How Much Money is Texas Leaving on the Table?
Take It or Leave It
In regards to the amount of state sources that contribute to the total elementary-secondary fund, Texas ranks 49th out of the 50 states. Why are Texas’ state sources falling short? What state sources do other states have that Texas does not?
Although this may be a seemingly sizable amount of money, by and large, this hypothetical number would only make up .27% of Texas’ total general revenue fund. Here is how we know this:
Moreover, when analyzing Arkansas FY 19 (before the state legalized gambling) and FY 20 (after the state legalized gambling), the general education fund did not increase significantly — in fact, the public school fund stayed exactly the same.
Based on this evidence, Arkansas seemed to reallocate revenue for education rather than adding a considerable amount of the gaming tax revenue into its existing education funds.
While Texas is not Arkansas and would not model the legalization of gambling after Arkansas’ method, one could argue that Texas is not foregoing a considerable financial opportunity when it comes to increasing education funds. This is because the money that Texas could potentially earn from legalized gambling makes up such a small amount of the general revenue fund. Moreover, $629.4M is a massive amount of money, but specifically based on Arkansas’ somewhat unsuccessful gaming revenue blueprint regarding educational finances, the financial advantages do not seem to outweigh the moral drawbacks.
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