Reallocates the remainder of net video lottery terminal revenue to the education trust fund for public school aid.
modifying the deposit of revenues collected from video lottery terminals.
The Lottery funds just a portion of the cost of k-12 education with the much larger share borne by property taxpayers. Let it now begin to do what was promised 60 years ago - fund education and ease the burden on taxpayers.
If lottery money is supposed to go to education trust fund, then all lottery money regardless of source should go to this. Also there should be disclaimer that this money is for PUBLIC Education, not vouchers.
Adverse Underpinnings of HB1409 Changes to Revenue Allocation The proposed changes in how gaming revenue is allocated could have far-reaching implications: Impact on Public Funding Streams: Current allocations typically support vital public services, including education, healthcare, and infrastructure. By altering these streams, the bill risks prioritizing short-term gains over long-term community welfare. Increased Vulnerability for Low-Income Communities: Areas that depend heavily on gaming revenue for public services may face financial instability. As funds are diverted, essential support systems such as schools and public health may experience cutbacks. Ethical and Transparency Issues The proposed framework surrounding transparency and ethics creates room for misuse and misallocation of funds: Lack of Accountability: Without clear guidelines on how changes will be implemented or monitored, there is a serious risk of corruption or arbitrary decisions that may not serve the community's best interests. Erosion of Trust in Public Institutions: Communities may feel alienated and distrustful of the government if they perceive that decisions are being made behind closed doors, especially when funds are involved. Who Benefits and Who Does Not? Group Benefits Does Not Benefit State Government Potential short-term revenue boosts Communities dependent on stable public funding Gaming Operators Increased flexibility for revenue allocation Families and individuals affected by gambling-induced debts Lobbyists for Gaming Interests Possible increased influence over policy Vulnerable populations with diminished public services Politicians Opportunity to signal fiscal responsibility while neglecting broader implications Low-income neighborhoods facing reduced access to essential services Conclusion: An Inclusive Perspective While HB1409 may promise increased revenue from video lottery terminals, it risks undermining the very fabric of community welfare, particularly for those already marginalized by socioeconomic disparities. The bill's potential to erode public trust through ethical concerns and revenue misallocation underscores the need for a more transparent and equitable approach to gaming revenue management. Advocacy for responsible governance must prioritize the well-being of all constituents rather than extracting short-term gains at the cost of essential public services. An intersectional approach calls for stakeholders to engage directly with affected communities, ensuring that marginalized voices are heard in discussions about funding priorities and public accountability. This inclusive dialogue is vital for creating a fair and equitable system that genuinely supports the needs of all New Hampshire residents.
Mr. Chair: As a co-sponsor of HB1409, I support this legislation because it more closely complies with the NH Constitution requiring that all gaming revenues be allocated to the public education. Thank you.
Letter of Support for HB 1409-FN To the House Ways and Means Committee Dear Chair and Members of the Committee, I am writing in strong support of HB 1409-FN, which directs the remainder of net video lottery terminal (VLT) revenue into New Hampshire’s Education Trust Fund for public school aid. This bill is not just good fiscal policy — it is now a constitutional necessity. The New Hampshire Supreme Court has made it unmistakably clear that the State of New Hampshire has a non-delegable, enforceable obligation to fund an adequate public education. In its most recent Claremont rulings, the Court reaffirmed that the state must not only define the cost of an adequate education, but must pay for it with state revenue — not local property taxes. The current system, which forces towns to raise more than two-thirds of school funding locally, was again found to be unconstitutional. HB 1409 provides one of the most responsible and immediate tools available to the Legislature to meet that obligation. Video lottery terminals are a state-regulated, state-authorized revenue stream. These funds do not come from local taxpayers. They do not require new taxes. They do not burden municipalities. And yet today, a significant portion of this revenue is diverted away from education while towns struggle under crushing school tax rates. That makes no sense — legally, fiscally, or morally. By directing 100% of the net VLT revenue to the Education Trust Fund, HB 1409 ensures that money generated by a state enterprise is used for a core state constitutional duty. That is exactly what the Court envisioned when it ruled that education funding must rely on broad-based, statewide revenue sources, not local property taxes. This bill will not solve New Hampshire’s school-funding crisis by itself — but it will move us meaningfully in the right direction. Every dollar sent to the Education Trust Fund is a dollar that reduces the pressure on homeowners, renters, and small businesses who are currently subsidizing a state responsibility. Most importantly, HB 1409 respects the principle that every child in New Hampshire deserves an equal opportunity, regardless of their ZIP code or property tax base. The Supreme Court has spoken. The Constitution is clear. Now it is up to this Legislature to act. HB 1409-FN is one of the most direct, responsible, and legally sound steps we can take to begin complying with the Court’s rulings and restoring fairness to school funding. I urge the Committee to recommend Ought to Pass. Respectfully, David John Preece State Representative, Hillsborough District 17
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