There are times when something you read makes such little sense that the only response necessary is a head-shaking dismissal.
Initially, a recent editorial written by the Missoulian and picked up elsewhere in the state drew that head-shaking response from us. But the more it was discussed, the more we realized a more pointed response is necessary.
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The editorial basically alleged a “silver-lining” exists in the fact that gaming machine revenues have fallen 20 percent in the last two years. What is the silver lining? Well, that fewer people are gambling and smoking, the editorial said.
Huh?
There's a silver lining? Tell that to the thousands of liquor and gaming licensees, many of whom are stretched to the limit just to break even. And sadly, dozens are not making it in this tough economy, opting to try to sell or just plain close their doors.
That means people are losing jobs. And in the current economy, these former tavern and casino employees are not finding many other options for work, especially work that earned such good tip income.
Montana-owned taverns and casinos pay local, state and federal taxes. They also employ over 22,000 workers, according to the 1998 Montana Gambling Study.
It's sad for an editorial to so casually dismiss the livelihoods of hard-working folks in Main Street businesses throughout Montana. Tavern owners, individually and through their local tavern associations, donate thousands upon thousands of dollars to local charities. These businesses very often are the first approached by civic groups to help fund their activities because they rarely say no.
These small businesses gladly donate to charitable causes and pay their taxes, despite what for many is a very low net margin. According to the 1998 Montana Gambling Report, net margins averaged only about 8.5 percent statewide for licensees. Little slack exists in those operations to absorb a 20 percent decline on average in revenue with many hurting even more.
State government is feeling the financial strain as well. If the current revenue trend continues, fiscal year 2011 will see gaming tax collections drop below $50 million for the first time since 2003. It would represent a $13.5 million drop from the $63.4 million collected just three years ago. Ask your local legislator if $13.5 million is important to him or her.
Remember, the electronic gaming machines were originally authorized specifically to benefit local governments by replacing lost property taxes and other lost revenue. Though the state has changed the way it gives gambling tax revenue back to local governments, gaming machines still provide much-needed revenue to local towns and counties.
Last fiscal year, the state collected over $52 million from Montana gaming machines. Much of that money is funneled back to local governments to help pay for a variety of services, from police and fire departments to parks and libraries. If that money were lost, services could be cut or taxpayers could be asked to make up the shortage.
Finally, to make any kind of assertion that the smoking ban in taverns and casinos signals a drop in the number of smokers is absurd. The ban simply reduces the places where smokers can light up.
To draw a conclusion different from that just indicates a complete lack of understanding of the issue.
Silver lining?
Tell that to your state legislator, who already is struggling to meet the needs of the state which now has millions less to use.
Silver lining?
Tell that to your local city or county councilman, who will begin to see less money from the state.
Silver lining?
Tell that to owners of establishments who are closing their businesses, and so will no longer be paying any kind of taxes, thus hurting the state economy even further.
And just try explaining a silver lining to all the workers who are losing their jobs, and joining the taxpayer-funded unemployment line because few, if any, jobs exist in this economy.