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RESOLUTION NO. 12367
A RESOLUTION OF SUPPORT BY THE CITY OF PUEBLO,
A MUNICIPAL CORPORATION, FOR THE PROTECTION
OF THE CURRENT COLORADO LOTTERY
DISTRIBUTION FORMULA
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that:
WHEREAS, Colorado has a long standing commitment to the conservation and
enhancement of wildlife, parks, rivers, trails, working farms and ranches and open
space; and
WHEREAS, by wish of Colorado voters, Colorado Lottery proceeds have been
one of the few sources of funding for parks, recreation, open space, and wildlife projects
providing $2.3 billion in the past 28 years; and
WHEREAS, lottery funds support a thriving outdoor recreation industry which
contributes over $10 billion annually to Colorado's economy, supports 107,000 jobs
across Colorado, generates nearly $500 million in annual state tax revenue, and
produces $7.6 billion annually in retail sales and services across Colorado; and
WHEREAS, profits from the sale of lottery products are allocated according to
this formula: up to 50 percent to the Great Outdoors Colorado (GOCO) Trust Fund, 40
percent to the Conservation Trust Fund, and 10 percent to The Colorado Division of
Parks and Wildlife; and
WHEREAS, Colorado Lottery is GOCO’s single source of funding, capped at $35
million a year adjusted for inflation; if GOCO’s share exceeds that amount, the
remainder goes into the State Public School Fund; and
WHEREAS, GOCO gives money to projects across the state to help improve
communities. Funds help trails, improve parks, open outdoor recreation facilities,
preserve ranchlands and view corridors, improve and expand river quality and access,
and conserve wildlife habitat; and
WHEREAS, since 1994, GOCO has invested more than $757 million in Lottery
funds back to the state; grants to more than 3,400 projects in all 64 counties; permanent
conservation of more than 800,000 acres of open space; the creation and restoration of
more than 765 miles of trails; the development or enhancement of more than 1,050
community parks and outdoor recreation centers; and
WHEREAS, the Conservation Trust Fund helps local parks and recreation
providers – towns, cities, counties and special districts use funds for open space and
park land acquisition, recreation equipment purchases, recreational facility
development, park maintenance, and for the renovation and restoration of these local
facilities; and
WHEREAS, statewide, school-based and education related projects have
garnered nearly $20 million in GOCO/Lottery funds over the years, ranging from
resources and facilities like playgrounds, outdoor classrooms, ball fields and tennis
courts, to educational programming offered through Colorado State Parks and the
Division of Wildlife; and
WHEREAS, Colorado’s 42 state parks use lottery money for trail construction
and maintenance, land acquisition, equipment and facility purchases and maintenance
of state parks facilities; and
WHEREAS, current budget shortfalls have led the Legislature in many instances
to raid trust funds and other dedicated revenue sources; and
WHEREAS, a change to the current lottery distribution funding would be
detrimental to Colorado’s educational, recreational and outdoor grants.
NOW, THEREFORE, BE IT RESOLVED that we, Pueblo City Council, support
the preservation of the current lottery distribution formula; and urge Colorado lawmakers
to protect the historic distribution formula that allocates Lottery’s outdoor dollars in
collaboration with local governments and other local partners.
INTRODUCED: April 9, 2012
BY: Leroy Garcia
COUNCIL PERSON
Background Paper for Proposed
R
ESOLUTION
DATE: April 9, 2012 AGENDA ITEM # M-16
DEPARTMENT: PARKS AND RECREATION
CREIGHTON WRIGHT, DIRECTOR
TITLE:
A RESOLUTION OF SUPPORT BY THE CITY OF PUEBLO, A MUNICIPAL
CORPORATION, FOR THE PROTECTION OF THE CURRENT COLORADO
LOTTERY DISTRIBUTION FORMULA
ISSUE:
Should City Council support the preservation of the current lottery distribution formula
and urge Colorado lawmakers to protect the historic distribution formula that allocates
the Lottery’s outdoor dollars in collaboration with local governments and other local
partners?
RECOMMENDATION:
Approval of the Resolution.
BACKGROUND:
In 1992, Coloradans took a major step toward preserving their state’s outdoor heritage
by voting to create the Great Outdoors Colorado (GOCO) Trust Fund, which now forms
Article XXVII of the Colorado Constitution. The GOCO Amendment dedicates a portion
of state lottery proceeds to projects that preserve, protect, and enhance Colorado’s
wildlife, parks, rivers, trails, and open spaces.
GOCO receives 50% of the proceeds from the Colorado Lottery, its only source of
funding. The remainder of lottery proceeds is divided between the Conservation Trust
Fund and Colorado State Parks. GOCO’s funding is capped at $35 million a year
adjusted for inflation (roughly $56 million in Fiscal Year 2010); if GOCO’s share exceeds
that amount, the remainder goes into the State Public School Fund.
Since 1994, GOCO has invested more than $757 million in Lottery funds back to the
state; grants to more than 3,400 projects in all 64 counties; permanent conservation of
more than 800,000 acres of open space; the creation and restoration of more than 765
miles of trails; the development or enhancement of more than 1,050 community parks
and outdoor recreation centers.
In recent years, the general assembly has introduced or publicly discussed legislative
initiatives to dismantle GOCO’s current lottery distribution and funding. These bills
would have allowed the legislature to divert Lottery revenue to other funds on a two-
thirds vote of each house. Some have suggested creating additional lottery scratch
tickets irrespective of the constitution. While this would broaden the pool of lottery
recipients, it would ultimately decrease the amount of money distributed to protect
Colorado’s wildlife, parks, rivers, trails and open spaces. This topic however, is one that
has the potential to emerge each session.
There is a steering committee made up of the state’s leading land conservation groups,
high profile individuals concerned about land conservation and parks, and outdoor
business interests.
The aim of this committee is to protect the current lottery recipients from any attempt to
change the current distribution formula. To get ahead of this issue before it threatens
Colorado’s great outdoors. The committee believes, that to protect Colorado’s brand, it
must ensure that our children have safe places to play, our wildlife has healthy habitat
on which to thrive, and that our special places, river corridors and working landscapes
are protected now for the future.
FINANCIAL IMPACT:
Non-support of this Resolution could ultimately result in less annual funding for the City
of Pueblo from the Lottery which would then result in less development and
enhancement projects funded through Lottery proceeds.