Examination of supplantation and redistribution effects of lottery allocations to a community college system

183 Pages·1993·3.4 MB·English

by  Summers, Susan Robinson

AN EXAMINATION OF SUPPLANTATION AND REDISTRIBUTION EFFECTS OF
LOTTERY ALLOCATIONS TO A COMMUNITY COLLEGE SYSTEM
By
SUSAN ROBINSON SUMMERS
A DISSERTATION PRESENTED TO THE GRADUATE SCHOOL
OF THE UNIVERSITY OF FLORIDA IN PARTIAL FULFILLMENT
OF THE REQUIREMENTS FOR THE DEGREE OF
DOCTOR OF PHILOSOPHY
UNIVERSITY OF FLORIDA
1993
Copyright 1993
by
Susan Robinson Summers
For
Gordon
ACKNOWLEDGEMENTS
I am grateful to my chair, Distinguished Service
Professor Emeritus James L. Wattenbarger Dr. Wattenbarger
.
guided my doctoral experience at the University of Florida.
He instilled in me an enduring desire to provide leadership
in carrying forward his mission, that the Florida community
college system provide access to higher education for all
the citizens of Florida. Dr. Wattenbarger encouraged my
writing, and gave me the opportunity to be his research
assistant at the Institute of Higher Education. I thank my
cochair, Dr. David S. Honeyman, for the opportunity to work
full time as his research assistant, for his endless support
throughout this study, and for the countless hours spent
with me pursuing the mysteries of higher education finance.
I wish to thank my committee members: Dr. C. Arthur
Sandeen, for his enthusiasm for my topic and belief in my
ability to bring this dissertation to fruition, and Dr.
James H. Pitts for his abiding faith in me. I extend special
appreciation to Dr. M. David Miller for his kind
instruction, and the many hours he shared with me developing
the research design and regression models for this study,
and reviewing my findings. I thank my colleague, Mr. Jeffrey
Maiden, for his unflagging support and generosity, exploring
iv
with me the mysteries of educational finance, statistics,
and the mainframe computer.
This study was made possible through the help of many
different people in the Florida Department of Education and
the Florida Governor's Office. I would like to extend
deepest appreciation to Dr. Edward L. Cisek, Deputy
Executive Director, Department of Education, Division of
Community Colleges. Dr. Cisek was supportive of my use of
Divisional data to analyze the effect of the Florida Lottery
on the community colleges. Dr. Cisek extended the assistance
of his staff in collecting and verifying all the data used
in this study; Mr. Kenneth E. Jarrett, Director of Financial
Services, and Dr. Howard Campbell, Bureau Chief of
Information Systems, were especially helpful. Mr. Jarrett
lent several hours of his time during each visit I paid to
the Division, and later answered my questions by telephone.
Dr. Campbell provided enrollment data. At the Governor's
Office of Budget and Management, Mr. Link Jarrett,
Educational Policy Director, and Mr. Subhasis Das, analyst,
Revenue and Economic Analysis Policy Unit, gave assistance
with supplemental data.
My colleagues at Lake City Community College supported
my doctoral pursuit in many different ways. I extend special
thanks to President Muriel Kay Heimer, Vice President
Deborah Hecht, and Deans John Davis, Richard J. Jackson, and
David Richards. I thank my assistant, Ms. Lynn Bodiford, for
her loyalty and patience throughout the four years of
doctoral study.
I thank my father, Dr. John Robinson, for instilling in
me perfectionism, a deep belief in the value of higher
education, and a reverence for research. I thank my mother,
Mrs. Hazel Floyd Robinson, for her enduring belief in my
ability to succeed, and the time she spent caring for my
children while I was involved in doctoral studies. I
appreciate my parents for the examples they set by being
literate, articulate, and meticulous in practicing their
professions.
Most especially, I wish to acknowledge the
contributions of my husband, Gordon Summers, and children,
Sam, Catherine, and Daniel. They sacrificed countless hours
of time that would have been spent with me, had I not
pursued this goal. They never asked me to guit this guest;
and most of all, they always believed in me.
VI
TABLE OF CONTENTS
ACKNOWLEDGEMENTS iv
ABSTRACT xi
CHAPTERS
1 INTRODUCTION 1
Impact
2
Supplantation
2
Redistribution
3
Categorical Versus Noncategorical
Allocations
3
The Florida Education Lotteries
4
Community College and K-12 Similarities 6
Lottery Allocations as Noncategorical
Awards
7
Lottery as a Proportion of Operating
Revenues 10
An Unstable Period in Community College
Funding 11
Definition of Terms 13
2 REVIEW OF THE LITERATURE 17
....
Twentieth Century American Lotteries 17
The Impact of the Lottery on Community
College Funding 20
....
The Florida Education Lotteries 28
Lottery Revenues Viewed as an Excise
Tax 37
Supplantation 43
Redistribution 46
The Lottery as a Quasi-Business
Monopoly 50
Earmarking Lottery Proceeds 54
The Historical Context of Contemporary
Lotteries 56
The Earliest Lotteries 57
Territorial Florida Lotteries 58
Intercolonial and Interstate Lotteries 59
.
Early Examples of Supplantation and
Redistribution 61
...
The Revocation of State Lotteries 63
3 METHODOLOGY 66
Hypothetical Constructs 67
Assumptions 68
Data 69
vii
Procedures 71
Design 72
Impact 74
Supplantation 76
Redistribution 79
The Effect of Categorical Lottery
Allocations 79
4 RESULTS AND DISCUSSION 82
Impact 85
Supplantation 88
Redistribution 94
The Effect of Categorical Lottery
Allocations 96
Summary of Findings 100
Conclusions 102
5 SUMMARY AND CONCLUSIONS 104
Summary of Results 107
Impact 107
Supplantation 107
Redistribution 109
Categorical versus noncategorical
lottery awards 110
Conclusions Ill
Impact 112
Supplantation 112
Redistribution 114
The Effects of Categorical Awards 115
. .
Implications and Suggestions for Future
Research 117
APPENDICES 122
APPENDIX A THE FLORIDA COMMUNITY COLLEGES . 123
APPENDIX B STATE-OPERATED LOTTERIES,
CONSTITUTIONAL AND STATUTE CITATIONS, AND
LOTTERY FUND BENEFICIARIES 124
APPENDIX C RAW DATA SETS 129
Data Set C-I: The variables OBS, CC, YR, LT,
CAT, GRF, TOTSTATE, FTE, and FTEX12 13
.
Data Set C-II: The variables OBS, LOT,
LOTFTE, GRFFTE, STATFTE, and TOTAL E&G 143
REFERENCES 156
BIOGRAPHICAL SKETCH 166
Vlll
LIST OF TABLES
Table 1. System differences in proportions of
categorical and noncategorical funds in FY 1992-93
lottery
allocations 9
Table 2. Florida Education Enhancement Trust Fund
allocations to the K-12, CC, and SUS systems,
shown as a percentage of total 30
Table 3. Per-student funding history of Florida's
community colleges, FY 1981-1993, expressed in
current dollars 32
...
Table 4. Descriptive statistics of all variables. 86
Table 5 ANOVA table and parameter estimates for the
relationship between the lottery and the fiscal
status of the Florida community colleges 88
Table 6. ANOVA table and parameter estimates for the
supplantation model GRF = & + 6.,YR + G LT +
2
6 YR*LT 90
3
Table 7 ANOVA table and parameter estimates for the
.
supplantation model GRF = Bg+i^YR+J^LT 91
Table 8. Stepwise analysis of supplantation 93
Table 9. Stepwise regression for the dependent variable
FTEX12 95
Table 10. The effect of categorical vs. noncategorical
lottery allocations, the model TOTSTATE = B +
J^CAT + B LT +
2
B CAT*LT 97
3
Table 11. The effect of categorical vs. restricted
lottery allocations, the model TOTSTATE =
B CAT+B LT 99
1 2
Table 12. Stepwise analysis of the effect of
categorical versus noncategorical allocation of
lottery funds 100
ix
LIST OF FIGURES
Figure 1 The spread of lotteries across the United
States, 1964 through 1993 19
Figure 2 Florida Lottery allocations to education, FY
1987 - FY 1993, shown in current dollars (Source:
State of Florida Department of Education, 1992,
1993) 34
Figure 3. Percentages of FY 1992 lottery allocations,
categorical & noncategorical (Source: State of
Florida Department of Education, 1993, p. 4) 38
. . .
Figure 4. Parimutuel tax revenues rose from FY 1965
until the inception of the Florida Lottery, FY
1987 (Source: State of Florida Governor's Office
of Planning and Budgeting,
1993) 51
Figure 5. Supplantation of State of Florida general
revenue dollars with Florida Lottery dollars
allocated to the community college system 92
Figure 6. Redistribution of funding sources for
Florida's community college system, FY 1972 - FY
1991 96