You are viewing an archived issue of the Eugene Weekly. To return to our current issue, please click here.

Vice Squad
Where's the virtue in vice revenue?
BY TOM LININGER

Last month the Lane County Board of Commissioners passed a resolution acknowledging "Problem Gambling Awareness Week." We spoke solemnly about the social harms caused by gambling. We learned about the high rate of suicide attempts by gamblers.

Where did we hold this ceremony? In the same room where county commissioners meet to divide up nearly $1 million in proceeds that we receive each year from state-sanctioned gambling.

The commissioners all voiced their concern for the 7,000 gambling addicts in Lane County, but let's be honest — it seems a little disingenuous when the farmer pets the pig who will be breakfast tomorrow. Our superego counsels mercy, but our id wants bacon.

Meanwhile, some legislators in Salem have proposed expanding state-sponsored gambling. The introduction of video slot machines might generate another $80 million for state government. Oregon now offers more types of gambling than any other state except for Nevada. Any time our state is chasing Nevada for a record, we should be worried. (By the way, when will we catch up to Mississippi and Arkansas in funding our schools with conventional taxes?)

As you can tell, I'm no fan of state-sponsored gambling, but the subject that irks me most is our love-hate relationship with the tobacco industry. In the late 1990s, most states sued the tobacco companies for damages caused by cigarettes. This suit culminated in a nationwide settlement providing each state with a revenue stream that will continue indefinitely. Oregon gets about $75 million a year from this settlement.

The catch is that our share of the settlement will grow or shrink depending on the earnings of the tobacco industry. In proportion to our success in discouraging kids from smoking, the tobacco industry will lose money, and the future payments to states will decrease. This settlement was a pretty shrewd move by the tobacco executives. They're daring the government to bite the hand that feeds it.

So far, the government isn't biting too hard. Last week Washington's Attorney General Christine Gregoire held a press conference urging a judge in Illinois to take it easy on the tobacco industry. The judge was trying to require that Phillip Morris (now known as Altria) pay a $12 billion bond in order to appeal a defeat in a recent lawsuit. Gregoire argued that by requiring such a large bond, the Illinois judge "could deal a significant, unnecessary financial blow to the states" who have relied on Phillip Morris as their cash cow.

The Wall Street Journal observed that state governments "are poised to rescue the country's biggest cigarette maker in one of its darkest hours." Friends helping friends — kinda makes you misty-eyed, doesn't it? You almost forget that a few years ago, the states were arguing that the tobacco industry heartlessly caused thousands of deaths.

Our dependence on vice to fund our government has become an embarrassment. The next time the Board of County Commissioners elects a vice chair, we should assign that commissioner the duty befitting his title — monitoring the county's income derived from vice.


Tom Lininger is the county commissioner for the East Lane District, and is the former Chair of the Tobacco Settlement Advisory Task Force.

 

A commentary by Charles Gray can be found in this week's coverstory.

 

 


Table of Contents | News | Views | Calendar| Film | Music | Culture | Classifieds | Personals | Contact | EW Archive