Hogan Announces Plan for Casino Revenue “Lockbox” to Boost Education Funding

Governor Larry Hogan, flanked by Comptroller Peter Franchot and Secretary of Budget & Management David Brinkley, today announced the “Commitment to Education Act of 2018,” a proposal to ensure that taxes on casino revenues set aside for education are used to supplement, not supplant state funding for public schools. According to Governor Hogan, his plan will add $1 billion in school construction funding and $3.4 billion in operating funding for public schools over the next ten years.

Last month, legislature leadership announced a plan to place a constitutional amendment on the November ballot. The ballot question would ask voters to approve of putting a “lockbox” on casino money (around $500M per year), requiring it to be used for education above the amount set by state formulas. The Governor’s proposal would not require a referendum, it would be done through statute.

According to Governor Hogan, his legislation would phase-in casino revenues to a special fund (the “lockbox”) over the next four years. The first 20% percent would be used for school construction projects (around $100 million next year) and the rest would be used to supplement operating budgets.

The Administration is expected to provide more details on the proposal in the coming days.

Stay tuned to Conduit Street for more information.