The Alberta government's communications professionals will tell you that gambling revenues of $1.1 billion per year are not tax dollars, but "money from the Alberta Lottery Fund."

This year the Klein government is collecting $603 million from VLTs, $456 million from slot machines, and $168 million from ticket lotteries. After paying for prizes and expenses, politicians and bureaucrats are left with $1.1 billion to spend on projects and programs of their choice.

If this $1.1 billion is not tax revenue, why is it listed under "Revenue" on page 42 of Alberta's 2003 Budget The same goes for the Second Quarter Fiscal Update, which lists "gaming and lottery revenue" on page 3, along with oil and gas royalties, health care premiums, and the hotel room tax.

Why is most of this $1.1 billion spent on things also paid for by tax dollars from other sources For example, $96 million is going into the province's Sustainability Fund, $15 million to Water Management Infrastructure, $25 million to the Street Improvement Program, $28 million to municipalities as unconditional grants, $3 million for Achievement Scholarships, $145 million for health, school and post-secondary facilities, $10 million for Community Based Health Services, $130 million for human tissue and blood services, $49 million for the Alberta Alcohol and Drug Abuse Commission, $5 million for health services research, $12 million for agricultural services, and $30 million for family and community support services.

Is this spending any different from the spending of tax dollars on other government programs

If the Alberta government banned VLTs and slot machines, would the government then stop paying for the things listed above

A tax dollar is a dollar spent by politicians and bureaucrats rather than by the individual who earned it. So why pretend that gaming and lottery revenues are not tax revenues

Perhaps because the Klein government can't stomach the thought of relying on gambling revenues to finance core programs, which is what is now happening. The Alberta government uses its monopoly on VLTs, slot machines and lotteries to generate $1.1 billion, which makes up about 5% of total tax revenues.

Further, some of this money is spent to subsidize businesses and special interest groups. For example, $37 million per year is given to the horse racing industry, $30 million to the arts, $1.3 million to promote multiculturalism, $4.5 million to sports and recreation, $2.7 million to the Oilers, $2.7 million to the Flames, and $4 million for a "First Nations Development Fund."

If you disagree with tax dollars being spent on any of these items, the government will tell you that it's paid for with "money from the Alberta Lottery Fund" and not with tax dollars. But at the same time, most of the $1.1 billion is spent on health, education, transportation and agriculture - no different from what other tax revenues are spent on.

The Alberta government should stop pretending that its gaming revenues are not tax dollars. If the government continues collecting $1.1 billion from its gambling operations, none of those tax dollars should be handed out to businesses or special interest groups.