Issue 3: The Facts

The Basics

Ohio ballot Issue 3, nicknamed Learn and Earn, proposes a constitutional amendment that would take revenues from slot machines and put them toward college scholarships.

The amendment, which by definition would be a permanent addition to the Ohio constitution, would allow 31, 500 slot machines at seven horse race tracks and two non-track locations on the Cleveland riverfront. The Ohio Board of Regents would recieve 30 percent of the proceeds from the slot machines to fund scholarships for high school students.

Prior to enrolling in college, students would have to, according to the official language of the proposed amendment "take core and advanced academic courses, participate in college readiness programs, assessment, and testing at any accredited public or non-public high school in this state, and contribute to public life through voluntary civic activity, and who attend any public or independent not-for-profit institution of higher education authorized by the Ohio Board of Regents and that has its principal office within this state."

The first scholarships would be awarded in 2008, two years after the amendment's proposed addition to the Ohio Constitution. For the first 12 years of the program, full tuition grants would be given to all students in the top five percent of their graduating class, provided they attended a public state college or university.

Where is the Money Going?




In addition to the 30 percent given to the state soley for these grants, small percentages are designated to other state functions. One percent of all revenue is earmarked by the proposed amendment to help fund gambling addiction services. In addition, .6 percent of proceeds go to each county where a horse track with slot machines is located, and three percent goes to the municipality where machines are kept. Cuyahoga county, where both of the non-track facilities are located, will recieve .8 percent of the revenues from those facilities. Counties with one horse track and over 750 thousand residents recieve .4 percent of that counties revenue, and the county seat recieves 2.4 percent of the revenue. Monies distributed to the counties would not be taxed.

All of the remaining revenue is designated for the places that house the slot machines. Fifty-five percent of the revenue goes directly to the horse tracks and businesses, and another six percent of the funds are allocated to them for pocket money. Each member business must pay a $15 million dollar licensing fee.

The Gaming Integrity Commission

The amendment would also create a five member committee called the Gaming Integrity Commission to regulate all gambling created by the Learn and Earn amendment. The governor would appoint people to the committee, and no more than two people on the committee can be members of the same political party. The costs of the committee are to be paid by the monies earmarked for counties and municipalities. If for some reason the GIC is not appointed within six months of the passage of the amendment, the Lottery Commission will control the Learn and Earn slot machines.