Nonprofit Mississippi News Larry Gregory often addresses Rotary clubs, Kiwanis groups and other groups. He says that people are always asking if the casino tax revenue isn’t supposed to go to schools in Mississippi. Gregory, former executive director and executive director at the Mississippi Gaming and Hospitality Association, says it every time. Gregory denied any talk that education was a major beneficiary of the approval of casinos in the 1990s. He said that it’s not stated in the Mississippi Gaming Control Act, or any other legal document that specifically states that tax revenue from casinos would be used to benefit education across the state. According to a 1990 New York Times report, the casino would provide new jobs, large payrolls, more revenue for cities and counties, and more business for local suppliers. The report didn’t mention schools as the priority. According to state regulations, schools receive a portion of the tax at the local level. Schools have enjoyed the benefits of casinos in Biloxi, Tunica, and other places. Gregory stated that they have a financial windfall that other school districts do not enjoy. The 25th anniversary of Mississippi’s casinos was celebrated by the Mississippi Gaming and Hospitality Association. They reported that Mississippi casinos paid $638 million in taxes and $6.5 billion in state tax over the previous 25 years. According to the Sun Herald, $26 million of tax revenue was channeled to local schools in the first five years of South Mississippi’s casino industry. According to the Sun Herald, $3.9 million was collected by Gulfport schools. This money was used for newer computers, teachers, more classrooms, and better physical education classes in each grade school. Larry Drawdy, the Biloxi School District superintendent at the time, stated that “Gaming dollars do so much right now that was neglected for 37 years.” “We were at a place where we would have to raise local property taxes, or do without and have a lower standard of education.” These were some drawbacks. According to the article, schools that weren’t eligible for tax money from casinos had difficulty offering competitive salaries while teachers working in gambling towns received raises. According to a 1999 case study, Tunica County schools had the lowest test scores and spent the least per student before casinos. According to “The Effects of Casino Gaming in Tunica County”, more than $3million a year was being spent on local schools by 1997. However, the report states that the state still controlled the school system. The report stated that bright high school graduates would work at the casino instead of attending college. Mississippi casinos pay 12 percent tax on gross gaming revenue. Casinos pay a 12 percent tax on gross gaming revenue. While businesses typically pay taxes on their profits, they pay the 12 percent tax on winnings after deducting wages, insurance, and other costs of doing business. This is the breakdown: * 8 per cent goes to state general fund. It is used in part to support education. $3 million is sent to the bond sinking funds to help pay for improvements in state roads and bridges. * Up to 4 per cent — 12 percent — can be split between local governments or schools. For example, in Biloxi, 40% goes to the city general fund. 20 percent goes to the city public safety. 20 percent goes to Biloxi School District. 10 percent is distributed among Harrison County public schools. Only seven of the 151 Mississippi school districts benefit from local distribution. The tax on gross casino revenues, which Shane Switzer (director of business) estimates is approximately 10 percent of the overall school budget, gives Biloxi School District $6 million annually. Since July’s start of the state fiscal year, sport’s betting has increased the city’s share to more than $200,000 He said that in addition to the gaming revenue taxes, they also receive ad valorem tax from both personal property and land assessments. The local fee is paid by casinos for each slot machine. There are also other wage and use taxes. Mississippi’s casinos employed nearly 20,000 people and had a payroll of $51million in December 2018. Florida law requires that all slot machine tax revenues be paid to the Educational Enhancement Trust Fund. This fund distributes funds to public schools and colleges as well as financial aid to students. According to the American Gaming Association, Missouri also directs large amounts of casino taxes to education. These provisions don’t exist in Mississippi, but casinos’ taxes benefit all school districts across the state, according to Kathy Waterbury, with the Department of Revenue. The general fund, which provides funds for education, will receive nearly all the revenue from the state’s gross gaming revenue. Waterbury stated that a portion of the revenue from casinos and other businesses in Mississippi is used to fund education. She said that DOR contributed more than $2 billion to the general fund in fiscal 2018. These transfers occur after all other divertions have been paid to cities, hotels and other special taxes. She stated that 2.266 percent of total sales tax revenue is placed in the School Ad Valorem Fund, which can hold $42 million each year. Any amount exceeding $42 million is transferred into the Education Enhancement Fund. This fund also receives 9 per cent of the state’s tax revenue. She said that $299 million was the total amount. It’s up the state legislators. 2015 House Bill 1630 made changes to the way that casino revenue was divided. Revenue that was previously earmarked for highways and bridges near casinos was now directed towards the entire state. These changes did not provide additional funds for education. Waterbury stated that the Legislature had allocated a portion from the $3 million-a month bond sinking fund. In 2016, $500,000 was provided each month to the Gulfport Aquarium Construction Fund. $41,663 was used for Catfish Row Museum Construction Fund. $83,334 was used to support the Bass Cultural Arts Center Fund. Another $500,000 per month was taken from the bond sinking funds in 2017 to construct the Gulfport aquarium. All $3 million per month will be directed again to the bond sinking funds in 2018. After years of debate, the state Legislature was finally able to direct gambling money towards education in 2018. In contrast to Louisiana, where 35 per cent of lottery winnings go towards education, Mississippi legislators decided that the state’s crumbling roads and bridges should be the priority. If there are any leftover lottery revenues in Mississippi, education will be entitled to a portion of them.