Unions and state governments place bet on slot-based funding

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When budgets get squeezed, all of a sudden folks get creative about new--and sometimes discomforting--funding sources. In two states this month, teacher unions and legislators have proposed tapping into gambling dollars to pay for education initiatives. The Nevada State Education Association recently filed a petition to increase the state tax casinos pay by 50 percent in order to raise $400 million a year for needed school improvements.

"Nevada ranks at the bottom in per-pupil spending, and our educators are tired of the burden they've been forced to bear for years," laments union president Lynne Warne.

Meanwhile, the Maryland State Teachers Association is suddenly supporting a long-proposed referendum out of the legislature to legalize slot machine gambling. Referendum supporters in the State Senate estimate an eventual $600 million annual revenue from slots, money they say is needed to prevent school funding cuts due to a dwindling budget.

Slots proponent and Maryland Senate president Mike Miller actively sought the MSTA endorsement, saying "We love you guys, but we've got to pay the bills."