Two former Nebraska government officials are suing the state over lottery funds, arguing that proceeds are being unconstitutionally diverted away from the environmental trust.
W. Don Nelson and Jon Oberg are making their case against state officials including State Treasurer Joey Spellerberg, and are being represented by the local branch of the American Civil Liberties Union (ACLU) and Gutman Law Group.
The duo have argued that over $13.5m has been transferred from the Nebraska Environmental Trust to cover state expenses “that otherwise would have been covered by the state’s general fund”.
One of the two claimants, Nelson, is a founder of the Environmental Trust, according to the ACLU, while Oberg is a former Director of the Department of Administrative Service. The duo accuse the state of using the environmental fund like a ‘piggy bank’.
The lawsuit cites a 2004 constitutional amendment, approved by Nebraska citizens in a state vote, which guarantees a share of lottery proceeds to the Trust. Nelson, Oberg, and their legal representatives argue that the state’s actions are therefore unconstitutional under the Nebraska Environmental Trust Act.
“When we were figuring this out decades ago, we weren’t running around like squirrels in trees,” said Nelson. “We thought very carefully about Nebraska’s environmental needs and the proper role of a trust in conservation.
“We envisioned something enduring, a carefully stewarded resource that would benefit our grandkids’ grandkids. If we let the government drain money out of it every time the budget is short, this will be a trust in name only. I couldn’t stand by and watch that happen without doing something.”
The litigation illustrates how highly contentious and political the topic of lottery funds can be. This is especially true of lottery activities in the US, where the proceeds from lottery ticket sales are often used to subsidise state programmes and initiatives.
Environmental causes, as in Nebraska, are a common target for lottery funding, as is education – particularly in states such as New York.
The value that lotteries have for the state often gives lotteries political protection, such was the case in Texas last year when, after a long controversy around bulk ticket purchases, the lottery was ultimately spared the axe.
However, it also makes the lottery a point of scrutiny, as Nebraska – or in fact, the abovementioned case in Texas – show.
Carter Matt, ACLU of Nebraska staff attorney, said: “This is a voting rights issue to us. Voters knew exactly what they approved when they guaranteed this conservation funding, and officials should have respected that vote and the clear text of both statute and the Nebraska Constitution.
“The Trust is for conservation purposes. Legally, its funds must complement efforts to conserve, enhance and restore Nebraska’s natural environments. We are working to make sure this is the last time that officials ransack the Trust to solve a budget problem.”