A proposal aimed at shoring up New Mexico’s struggling lottery scholarship program was halted in the House.
The House Ways and Means Committee voted 5-8 on a “do-pass” motion on Senate Bill 180 Tuesday, which halted the bill’s progress.
The legislation, approved by the Senate on a 29-12 vote last week, would require the New Mexico Lottery Authority to provide $41 million a year for college scholarships. It would also remove the requirement for the lottery to funnel 30% of its monthly revenue to the state college scholarship program to allow the lottery to spend more money on advertising and promotion, draw in more players and offer bigger prizes, said Senate Finance Chair John Arthur Smith, the bill’s sponsor. That, in turn, could lead to an increase in lottery revenue and more money for scholarships.
“What we’re attempting to do is maximize the bottom line to the state for lottery scholarships,” said Smith.
Some backers of the scholarship program opposed the legislation and the 30% monthly contribution that has resulted in an additional $9 million a year for scholarships.
“The $41 million floor will become a ceiling because the lottery does not have an incentive to deliver one penny more to scholarships, even if lottery sales increase,” said Fred Nathan, the executive director of Think New Mexico.
Meanwhile, several senators voiced concern about language in the bill that could lead to the state lottery offering slot machines and other types of video gambling, which could put the states’ compact with tribes at risk.
New Mexico gets a portion of the tribes’ casino and racetrack gambling revenue, totaling about $60 million in 2015.
Smith and Lottery Authority CEO David Barden said that bill would not have given the lottery any power to buy or use lottery games.
“We’re very cognizant of not violating the compact,” Barden told committee members.
