New casino revenue would go to schools to be named later

JEFFERSON CITY, Mo. -- If a casino is ever built in the Ozarks at Rockaway Beach, the state's share of the tax revenue from it would be earmarked for improving salaries of "high quality teachers employed in priority schools" and capital improvements at those same schools.

At this point, however, Missouri Department of Elementary and Secondary Education officials are unsure of the legal meaning of the terms "high quality teachers" and "priority schools."

"There is not an existing definition of 'high quality teacher.' The presumption is we would have to create a definition through rule," said DESE spokesman Jim Morris. "The 'priority schools' definition gets more complicated."

Amendment 1, which voters will decide Aug. 3, would change the Missouri Constitution to authorize construction of a riverboat casino on the White River at the small town of Rockaway Beach near Branson. If voters endorse the proposal, the Missouri Gaming Commission would have the final say on whether the proposed casino is actually built.

If it is, the $49 million in taxes the facility is expected to generate for the state would be divided equally between teacher salaries and building projects at priority schools.

Currently, gambling proceeds must be spent on education, including colleges and universities, but the Missouri Legislature decides how. Amendment 1, if ratified, isn't expected to alter the process for allocating existing gambling taxes.

A law enacted two years ago, but never implemented, set broad criteria for identifying priority schools. Legislation Gov. Bob Holden signed into law in June, however, repealed and replaced that provision.

The updated statute directs DESE to identify as priority schools those that fail to meet acceptable student achievement standards, taking into account graduation rates, attendance, drop out percentages, incidents of school violence and other factors. However, the law doesn't take effect until Aug. 28.

"There is no list of priority schools today," Morris said. "There will not be such a list by August 3."

As to defining "high quality teachers," DESE and the State Board of Education would be on their own, unless the legislature later passes a law granting the term legal meaning.

Cynthia McCafferty, a spokeswoman for the pro-Amendment 1 group Missourians for Economic Opportunity, said the key terms were left undefined within the proposed constitutional amendment to leave DESE some flexibility.

"We felt it was more appropriate for education officials to make those definitions and for them to have the ability to adjust those definitions as times change," McCafferty said.

Rather than throwing tax revenue from the Rockaway Beach casino into the overall education pot, McCafferty said Amendment 1 supporters decided to earmark the proceeds for struggling schools.

"They felt it very important to make sure the tax revenue from this particular project would go into areas and schools that need it most," McCafferty said.

Dedicating a revenue stream for capital improvements would be a first for the state. DESE currently distributes money to local schools for operating expenses; building construction and improvements are considered local responsibilities.

Another unusual provision of Amendment 1 is that revenue from the new casino would automatically stand appropriated to the State Board of Education without legislative approval. Typically, the legislature must authorize all spending, even in cases where a revenue stream is dedicated by law or the constitution to a particular agency or purpose.

Morris said DESE officials were unaware of that provision until it was brought to their attention Wednesday. Lacking a legislative appropriation, Morris said DESE would likely have to establish some arrangement with the state office of administration in order to spend the money.

"That was a wrinkle we had not noticed until now," Morris said.

mpowers@semissourian.com

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