NC governor keeping options open for revenues (Associated Press)
RALEIGH, N.C. A day after Gov. Beverly Perdue signed into law a bill banning video sweepstakes games, she suggested she’d listen to proposals to legalize video poker again in North Carolina.
And after Perdue signed a bill designed to reform the state Alcoholic Beverage Control system, she said she still was interested in privatizing parts of the liquor system, although the idea was panned before this year’s session began. An outside evaluation of the system is moving ahead.
“I am not through with the ABC system yet,” Perdue said.
So why stir the pot for a pair of politically charged issues like alcohol and gambling?
She could believe that heavily regulation of video gaming, which has kept popping up in new forms in North Carolina since a 2006 ban on traditional video poker machines, is the best way to control it. Perhaps she thinks getting the state out of the liquor business is a better way to manage alcohol as views on drinking become more permissive.
But her willingness may be the result of the harsh fiscal realities state government may face for the third year in a row. With a shortfall already projected to exceed more than $3 billion beginning in mid-2011 – half of it from lost federal stimulus dollars – Perdue doesn’t want to close any avenue that could generate new state revenues.
Video poker and ABC privatization could bring in several hundred million dollars.
Perdue told reporters last week she had already started working on next year’s budget proposal three weeks into the new fiscal year.
“We have proven that we know how to invest in our core, which is economic development and education,” Perdue said. “If that requires privatizing a piece of state government, I believe the General Assembly will have the courage – and folks across the state – to do what is needed to do to stand up and be sure that North Carolina’s core missions will be all right.”
Perdue’s suggestion that the video sweepstakes games or video poker might be revived was surprising. She had just agreed with legislative leaders that the computer-based games sprouting up at Internet cafes, business service centers and makeshift “casinos” were bad.
“My primary concern was the fact that they had just morphed into something uncontrollable all over the state,” Perdue said.
Then, she added: “I think if you have video sweepstakes, whether it’s video poker or video machines in general, we really do need to have some kind of concentrated, organized, unified system of regulation where they are under a set of standards or regulations.”
Perdue spokeswoman Chrissy Pearson said later while the governor wasn’t actively looking to revive video poker, “she would be open to look at legislation to see what direction to take that. The most important thing will be to regulate it very carefully and make sure it was regulated correctly.”
While Senate leader Marc Basnight, D-Dare, and House Speaker Joe Hackney, D-Orange, strongly oppose video poker, about two dozen House members declined to support the sweepstakes ban when it was approved earlier this month. A huge shortfall could help bring more support for legalizing video poker if sweepstakes games owner find another way to get around a ban.
A report from the North Carolina Education Lottery gave more credence to numbers pushed by the amusement machine owners for the past year about what the state could generate in tax revenues from regulating the industry. It found the state could receive $350 million in net revenues in its first year, reaching $576 million by the fourth year.
Bill Brooks with the North Carolina Family Policy Council is puzzled why Perdue would even consider giving video poker a new foothold in North Carolina. Perdue shouldn’t be lured by the potential short-term jackpot from the games because the cost to families harmed by gambling addictions and to the state through reduced economic activity when consumers’ money goes into games are much greater.
While lieutenant governor, Perdue cast the tie-breaking vote that approved lottery legislation in 2005.
“Every governor wants to make their mark,” Brooks said. “Maybe Gov. Perdue wants to be known for gambling.”
As for the ABC system, selling or leasing a chunk of the ABC system to an outside group seemed dead this spring after dozens of local government officials, substance abuse providers and religious leaders argued the state’s unique “control” system worked well at limiting alcohol abuse while providing more than $250 million in government revenues annually.
“The system has been a good system overall and we would like to keep it that way,” said Al Brown, a Concord city council member who opposes privatization.
Even if video poker and ABC privatization don’t occur, Perdue could benefit by talking like someone willing to consider new ideas, said Gary Pearce, a longtime Democratic consultant who used to work for Gov. Jim Hunt, Perdue’s mentor.
“I’m sure it’s about state finance issues,” Pearce said, but “it’s also a way of talking about shaking things up.”
Published Sun, Jul 25, 2010 09:11 AM
Modified Sun, Jul 25, 2010 09:21 AM
