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HomeMy WebLinkAbout12367 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.