Oregon Considering Cutting Lottery Commissions
Oregon is facing a budget crisis and Oregon Lottery profits are declining. This is a recipe for disaster for bars and taverns faced with their own economic challenges as the lottery officials debate whether to cut lottery commissions to channel more funds to prop up essential state programs like education.
Lottery commissions have been cut five times since 1992, but increased sales have generally offset the cuts. Now, with lottery sales trending down, a cut to lottery commissions could be devastating to already struggling bars and taverns.
Proponents of reducing commissions argue that the lottery’s current program amounts to a tavern welfare program and that those funds should be channeled to educational programs instead. One proposal is to reduce the commission rate from 23 percent to 15 percent. Bars and taverns argue that their margins are razor thin and that cuts in this economy could result in business closures and lost jobs.
Tough times and tough choices. We'll be following this issue closely and will update you here when there are new developments.
For more information, see http://www.oregonlive.com/politics/index.ssf/2009/08/oregon_eyes_taverns_and_bars_v.html.
