Iowa Casinos raise $3.5 Bill - 35K Jobs

Post by **Coyote** » Wed Mar 30, 2005 6:39 am

OWH wrote: Iowa casinos, bankruptcies linked, report indicates

DES MOINES (AP) - Counties with casinos have more bankruptcies, according to preliminary findings of a study that looks at the impact of gambling on Iowans.

The University of Northern Iowa study was commissioned by the Legislature last year as lawmakers considered expanding the number of casinos.

The report, presented to lawmakers Monday, says there are more bankruptcies in counties that have casinos than in comparable counties that don't.

The report also says the 10 counties that have gambling also have more crime, but the report's authors said they weren't ready to say that crime was worse because of gambling. They said more study is needed.

"We don't know what the reason is," said Deepak Chhabra, an assistant professor at UNI.

The study found that gambling generated $3.5 billion and created 35,000 jobs in Iowa last year.

It was unclear whether the study would sway state leaders.

"Based on what I'm seeing, it's about what we expected," said Senate Republican President Jeff Lamberti of Ankeny. "So I don't think it will have a huge impact."

Senate Democratic President Jack Kibbie of Emmetsburg said some rural counties already are losing jobs and population. He said he doesn't see any greater risk of bankruptcies because of gambling.

"I don't see us having many more if my county is lucky enough to have a (casino) license," Kibbie said.

Bob Miller, president of the anti-gambling group Truth About Gambling Foundation, said the study was inadequate. "I don't care what it contains," he said. "It's not worth much."

Wes Ehrecke, president of the Iowa Gaming Association, said the study shows that gambling is good for the state's economy. "It is adding to Iowa's entertainment and tourism industry," he said.

A full draft of the report is expected by mid-April with a final report due by July 1.

DMRyan · Post by **DMRyan** » Wed Mar 30, 2005 8:53 am

I don't want to drum another firey debate with people that I very much respect on here, but this article is no surprise. The casinos have been a big economic plus for Iowa, but they're not the cleanest form of economic development because of the social costs that this article explains. It's defintely a trade-off.

This article about state income growth came out today, and Iowa governor is quick to claim that the economic stimulus programs funded by gambling money is the primary reason for the increase.

Iowa has second-highest increase in income in U.S.

State ranks 31st with average income of $30,560 for 2003-04

By DAVID PITT
ASSOCIATED PRESS
March 30, 2005

Iowa had the second-highest growth in per capita personal income in the nation last year, prompting Gov. Tom Vilsack to say Tuesday that it's proof economic development programs are working.

Per capita personal income - the average income received by workers - grew 7.8 percent in Iowa, far above the national average increase of 4.7 percent, according to the U.S. Bureau of Eco- nomic Analysis.

The average income received by Iowans increased to $30,560, up from $28,340 the year before. Iowa ranked 31st in the nation last year, up from 36th the year before.

Iowa's growth was surpassed only by North Dakota, which had 8.6 percent growth. South Dakota's personal income growth was third-fastest at 6.9 percent.

The bureau said record or near-record production of corn, soybeans and other crops "together with high prices due to poor harvests in various parts of the world and the low value of the dollar" boosted the average income for all three Midwest agricultural states.

Vilsack said the statistic shows that his efforts to transform the state's economy are working.

"Iowans are using the crops they grow in new and innovative ways that is benefiting our states income levels," he said in a statement. "We have identified Iowa's unique strengths that can position us to be leaders in the biosciences arena, and we have made significant strides in creating jobs and improving our quality of life."

Vilsack used the report's release to push lawmakers to approve the Iowa Values Fund, a grant and loan program that focuses in part on biotechnology companies. Vilsack wants up to $800 million for the program. Lawmakers are considering a much smaller plan.

Connecticut led the nation with an average income of $45,398, and Mississippi was last with an average income of $24,650.

And to make the Nebraskans happy, here is the average personal income levels of several nearby states. I was surprised to see Nebraska's being higher than Iowa's. I would've though all those counties of 1,000 people in nowhere Nebraska with very low annual income would've brought the rate down, but the high number of people in Omaha-Lincoln are really carrying the state average.

State Annual PI Rate of Growth Rank

Iowa: $30,560 7.8% 31st
Nebraska: $31,339 3.8% 25th
South Dakota: $30,586 6.9% 27th
Missouri: $30,608 3.9% 25th

Swift · Post by **Swift** » Wed Mar 30, 2005 9:26 am

Yeah, Warren Buffet and the 100 billionaires that supposedly live in Omaha probably help that too.

Is that statistic correct? Every time I hear it I think it can't be true, partly because I can't fathom that much money.

DTO Luv · Post by **DTO Luv** » Wed Mar 30, 2005 12:33 pm

I fathom that much money all the time. And about the casinos, can't Iowa come up with a more unique way to make money? If you have all of these casinos they won't be as unique and they will become more for local use. And you can only drain so much out of a smaller area before the ill effects come in.

Big E · Post by **Big E** » Wed Mar 30, 2005 12:56 pm

http://www.forbes.com/lists/2005/03/09/bill05land.html

There's only 691 billionaires in the world, according to Forbes.

http://www.forbes.com/static/bill2005/s ... raska.html

They claim three in Omaha.

-Big E

DMRyan · Post by **DMRyan** » Wed Mar 30, 2005 1:17 pm

can't Iowa come up with a more unique way to make money?

Like raising taxes on gas, sales, property and income?

DTO Luv · Post by **DTO Luv** » Wed Mar 30, 2005 1:27 pm

Like focusing on keeping younger people in the state (which you guys are working on) or getting more businesses in the state. Casinos are just another tax to get away with because it doesn't have the word "tax" in it so it sugercoats the problem and turns out to be a bigger problem. But we'll probably always disagree on that Ryan.

DMRyan · Post by **DMRyan** » Wed Mar 30, 2005 1:40 pm

But casinos are a different kind of tax because you have a choice to buy a pack of smokes or spend your rent money at casinos. Spend too much money continiously and you're an addict that needs treatment. Don't get help and continue to spend money...well, not everyone gets to have their hand carried in life because they can't make proper decisions. I'm about as compassionate as a right-wing Republican on this issue.

As I said in the other thread, casinos aren't the end all be all of economic development. Nobody in Iowa thinks we should build more casinos, sit back and do nothing else. It's the money that the casinos are making that is and will continue to be used to create new, high tech and well paying jobs...and in just two years of Iowa having a new economics incentives package, 16,000 new jobs have been created by giving incentives to lure or retain financial, biotech, high tech and advanced manufacturing companies.

Swift · Post by **Swift** » Wed Mar 30, 2005 2:27 pm

I didn't think that statistic could be right. Maybe it was over 100 millionaires. That's more believeable.

Big E · Post by **Big E** » Wed Mar 30, 2005 2:48 pm

100 millionaires is way too low. There are 100 millionaires in Candlewood.

-Big E

skibum21 · Post by **skibum21** » Wed Mar 30, 2005 2:51 pm

A few years ago, the statistics the Chamber promoted was 5 billionaires and 15000 millionaires.

Swift · Post by **Swift** » Wed Mar 30, 2005 3:09 pm

Haha, woa my statistics are WAAAY off.

GoWest · Post by **GoWest** » Wed Mar 30, 2005 5:03 pm

skibum21 wrote:A few years ago, the statistics the Chamber promoted was 5 billionaires and 15000 millionaires.

I've heard similar numbers as well. Only 3 billionaires and 14000 millionaires. Either way Omaha is a very sucessful city.

Alt(Bayern)München · Post by **Alt(Bayern)München** » Thu Mar 31, 2005 9:47 pm

It was 6 Billionaires & 15000 Millionaires in the area.
It was the largest concentration,as a percentage of total population, in the country at the time.

The 6 Biliionaires were: Buffett & his #2, Walter Scott & the #2 at Keiwitt at the time, and the Ameritrade guy Joe Something and the #2 at Ameritrade.
You have to keep in mind this was paper wealth in 1998/1999 and was pre the DOT.COM stock collapse & 9/11.
The 2002 list (after the bubble burst & 9/11) had us down to 2 Billionaires, and the number of millionaires took a similar hit percentage wise.
If you judge a millionaire on physical assets like houses, there are still thousands left in Omaha. In the mid to late 1980's there were only 3 or 4 houses in all of Nebraska valued at over 1 million dollars.
Ido not think that there are any houses in the section of Linden Estates closest to Dodge that are UNDER a million.
Likewise that lake development up by Bennington has several houses WAY over a million!
So however you look at it, even if it's 1/2 of wnat it was in 1999, there is still some SERIOUS money in the area.