Do you use the envelope system for budgeting?

Paul Hamby
Posted 10/2/24

The idea is that you set aside money for specific tasks and store it in an envelope until needed so that money ...

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Do you use the envelope system for budgeting?

Posted

The idea is that you set aside money for specific tasks and store it in an envelope until needed so that money is not spent on temptations.

One such envelope would be for groceries. The cook in your house might suggest having a garage sale to get some extra money for this month. $35 extra is raised towards the $700 food budget and put in the food envelope.

Grocery shopping day arrives. The cook withdraws 665 from family checking to get the $700 budgeted to go to the store.

The new extra money in reality did not create more money for food, but it did cause you to leave a little more in the family checking ‘general revenue’ account.

Amendment 2 and 5 will expand gambling in Missouri. All the ads are about raising revenue for education. They are misleading.

Here is how the state budget is created: The ‘education budget envelope’ has a hundred sources of revenue. When the final budget is determined, all those are added up and then whatever additional money is needed is transferred from general revenue to the ‘education budget envelope.’ The end result of a new revenue source from gambling is simply more money that ends up in the general revenue fund for the state to spend any way they want.

The same way putting garage sale money in an envelope does not necessarily give you more money for groceries.

It is simply not true that schools will get more money by passing these constitutional amendments. This was exactly the argument used to sell the 1994 amendment that legalized riverboat gambling in Missouri. The end result? More money for the state general revenue.

A “yes” vote for Amendment 2 will amend the Missouri Constitution to permit licensed sports wagering to be regulated by the Missouri Gaming Commission — this is to allow gambling at convenience stores and on phone apps. A2 will restrict sports betting to individuals physically located in the state and over the age of 21. The amendment includes a 10% wagering tax on revenues received to be appropriated for educational institutions in Missouri.

A “yes” vote for Amendment 5 will amend the Missouri Constitution to allow the Missouri Gaming Commission to issue an additional gambling boat license to operate an excursion gambling boat on the Osage River, at the Lake of the Ozarks.

The truth about gambling is that the house always wins in the long term. Gambling is highly addictive. Many folks in Missouri have broken marriages and lost their fortunes due to this addiction. Amendment 2 is funded by out of state gambling companies. They set up this new law with 5 million dollars of tax revenue earmarked to combat gambling addiction.

We should not be creating environments that are anti-family, encourage addiction and destructive to mental health.

I recommend Voting No on both Amendment 2 and 5.

Election day is Tuesday November 5. The last day to register to vote is Wednesday October 9