Governor/AG Candidates Respond to ACM

 ACM recently offered the prominent candidates for Governor and Attorney General
space in our ACM Newsletter to express their views on charitable gambling.  We asked
for their general thoughts on charitable gambling in Minnesota (particularly on lawful
gambling taxes), and it's future in Minnesota under their leadership as a major state
official. Some of the candidates responded, some did not.

 On pages 4 through 9 you will find the responses we received from the candidates.  We
hope you take time to read what these people had to say about our industry and our
issues. While we know that many different issues go into the final decision about who to
vote for, we hope that you'll consider what these candidates said and how that could effect
the future of your licensed organization and your community.

 We strongly recommend that you share the candidate responses with your organizations
entire membership -- feel free to make copies of the comments to distribute, put these
responses in your own newsletter, or hang them up where your members will have a
chance to review what they had to say. The responses were as different as the candidates
and are worth reading!

 All political pundits are saying that the elections this year will experience an unusually
low voter turnout. If that¹s the case and we can mobilize our members, we will have a
greater impact than normal on this year¹s election. Remember, our industry's greatest
asset is that the 1500 plus licensed nonprofit/tax exempt organizations that conduct
lawful gambling in over 3100 sites throughout Minnesota represent over 500,000
individual members.

 If you haven¹t already invited your local candidates to speak to your organization you
should do so in the next couple of months. The primary election is September 15th
(remember to vote), and the general election is on November 3rd, so you don¹t have much
time to act. Educating your future legislators on charitable gambling issues (particularly
taxes) will help us immensely in the next legislative session.  Please, act today!!

1998 Governor & Attorney General
Candidate Responses

Governor Candidates

DFL

Mike Freeman

 I'm pleased to have this opportunity to address organizations that make use of charitable
gaming.  I strongly believe in the work you do and the strength it adds to our community
life. Your organizations are unique; you are neither government nor business.  By and
large, you are unique in the non-profit world as well. While many non-profits address a
problem or social ill, most charitable gaming associations provide for the general
betterment of a community.

 I'm a veteran and a father so I am especially appreciative of the work done by charitable
gaming organizations. Fraternal groups, sports associations/clubs, veterans groups and
Jaycees give our communities life and add to our civic pride. As Governor, I will strongly
support these types of organizations and I will encourage greater participation from the
public.

 Gaming is not the source of revenue I would have chosen for your organizations.  Still, it
is now there and I support it for the outcome it generates. If we did find a way to remove
gaming as a dominant source of revenue, it would only be because we've replaced it with
some other source at least as lucrative. Of course I would fully involve Allied Charities in
any discussion to reform the gaming laws.

 You have my full support and gratitude for your work. I look forward to a solid
partnership of governing in the years to come.

Hubert Humphrey III

 I support charitable gambling as a fund-raising tool for non-profit organizations.
Charitable gambling has been legal in some form in this state for over 50 years. During
that time, many communities throughout Minnesota have benefitted from the countless
projects and programs funded by charitable gambling dollars. But let's not let the
benefits of charitable gambling blind us from it's potential problems. If charitable
gambling is to continue to operate in this state, we must ensure that it is conducted
honestly. As your Governor, I will support charitable gambling, but I will expect each
and every charitable gambling organization to operate fairly and within the law. I will
continue to be a proponent of tough, effective regulation, but I assure you, I will support a
regulatory system based on common sense, not nonsense. Minnesota enjoys the most
successful charitable gambling industry in the country, and as Governor I will work to
keep it that way.I intend to work closely with the charitable gambling industry to deal
with the challenges and issues facing the industry - including reevaluating the tax
structure for charitable gambling, maximizing monies that are available for charitable
purposes, and investing an appropriate amount in prevention and treatment of
compulsive gambling. Charitable gambling provides opportunity, but it also requires us
to act responsibly. I believe that together, we can maximize the opportunities of
charitable gambling while at the same time meeting our responsibilities to the players,
the public and to the state.

Doug Johnson

 I have worked on a constructive basis with King Wilson and Allied Charities for many
years.

 Lawful gambling has helped hundreds of charities in Minnesota through the years. I
support this lawful activity and have supported many legislative changes to the laws that
charitable organizations have supported.

 As Senate Tax Chairman I authored the bill that lowered the charitable gambling tax in
the 1998 session and will support your efforts for further tax reductions when governor.

 Unlike many of my opponents, there is proof in my voting record of my support for
charitable gambling. I'm certain King Wilson would verify my support of this industry.

Ted Mondale

 I have been very honored over the years to have worked with many of the people involved
in Minnesota's lawful gambling organizations, both as a father and as a legislator. As a
father, the proceeds from charitable gambling have made a huge difference in my home
community of St. Louis Park. Families who have children involved in both baseball and
hockey have told me over and over that their children would not be able to play if it
weren't for the reduction in cost that charitable gambling proceeds provide.

 As a legislator, I was pleased to sponsor and pass legislation that called for the 100%
refund of unsold tickets, returning at least $5 million annually to Minnesota's
communities. It was a tough fight, one that took several sessions before it passed, but it
was a fight I was committed to winning for our communities. I also carried the
legislation to lower taxes on charitable gambling, and I will continue this fight as
governor. I will also be committed as governor to highlighting the benefits of charitable
gambling to Minnesota, and will fight to protect the dollars that do so much in our
communities.

Norm Coleman

 I have said throughout this campaign and will continue to do so as Governor -
"Minnesotans are simply being taxed to death!" Property taxes, sales taxes, income
taxes, utility taxes, payroll taxes, vehicle taxes - even taxes on charitable gambling - you
name a tax and Minnesotans pay it.

 My goal is to reduce the amount of taxes that Minnesotans pay by holding the line on
spending, returning excess revenues to taxpayers and improving the way government
operates. We have done that in Saint Paul. We can do it for all Minnesotans, as well.

 Those who earn a dollar are in the best position to figure out how to spend it. That goes
for workers and businesses, alike - both profit-oriented ones and our charitable
organizations. Allied Charities has been working to reduce the taxes on charitable
gambling ever since the DFL leadership imposed the combined receipts tax to fund some
of their pet projects in 1989. Some progress was made last year in reducing the overall tax
burden on charitable gambling. I will press for further reductions when I am Governor.

 I must admit however, that I am not a big proponent of gambling. Regardless of the good
works that come from charitable gambling proceeds, the state must maintain a strong
regulatory presence to ensure the integrity of the industry. But, foremost, government
must regulate without being unduly burdensome. I am talking common sense
regulation that encourages innovation while still keeping out the bad actors.

 Reducing taxes, streamlining regulation and encouraging growth have been and will
continue to be cornerstones of my approach to governing.

Attorney General Candidates

DFL

Mike Hatch

 Over the past decade we have seen many programs and services in our communities
provided by government severely reduced or eliminated. To fill that void, charitable
organizations across the state have stepped forward to raise funds in their communities
to meet the needs of their communities.

 The most successful fund-raising mechanism for these non-profits has been charitable
gambling. I know and understand what the proceeds from charitable gambling mean to
organizations and communities across the state of Minnesota. The funds mean the
difference between having programs for our kids, or letting them run the streets with
nothing to do but get into mischief, or getting food to those in need, or letting them go
hungry, and hundreds and hundreds of other examples where charitable gambling
dollars are going back into our communities to make them better places to live and raise
families.

 As your Attorney General, I would work hard to ensure that you have a strong and
responsible regulatory system. A system that is fair to those licensed non-profit
organizations running the games and the gaming players, and a system with integrity
which will ensure that charitable gambling endures over the years.

 I question why the state is taxing non-profit organizations who are doing good works in
their communities. I believe we need to review the present policy of taxing non-profit
organizations to begin with, and at the very least reduce the present tax burden
significantly in the future.

 As your Attorney General, I pledge to work with you on your issues so that you may be
better able to help out communities in Minnesota.

Ember Reichgott Junge

 I have been and will continue to be a strong proponent of charitable gambling. I voted in
favor of the 1997 Gambling Omnibus Bill. That legislation increased the amount of gross
profit from bingo that can be used for allowable expenses from 60 percent to 65 percent,
and the amount from other forms of lawful gambling from 50 percent to 55 percent.

 I have also been a strong supporter of legalized gambling programs whose profits
support critical social needs. In that same bill, I supported adding nutrition programs
for senior citizens and the disabled, such as "Meals on Wheels" to the list of lawful
purposes of charitable gambling. I believe it is important to extend the charitable benefits
as far as possible to as many people as possible. Charitable gambling, and the Allied
Charities of Minnesota (ACM) have led the way in promoting this commitment.

 Not only has charitable gambling contributed significant social benefits to Minnesota,
but generated considerable economic benefits. Lawful/charitable gambling brings in
critical taxes and charitable contributions to help build strong, livable communities and
provide quality jobs for Minnesotans, including $65 million in tax revenue and $72
million in charitable contributions, not to mention the thousands of new quality jobs.

 It has been my pleasure to work with ACM as a Minnesota State Senator and to support
many of its projects. Its work is important to me because it is important to Minnesota. As
Attorney General, I will continue to work and support the efforts of ACM.

GOP

Charlie Weaver

 During my ten years as a member of the Minnesota House of Representatives, I am
proud to have supported many bills involving charitable gambling. For Example, I
co-sponsored the 1996 legislation permitting the rebate of unsold ticket taxes and the 1998
charitable gambling tax reduction bill.

 Charitable gambling benefits Minnesota communities. In my own hometown of Anoka,
we have an ice arena, ball parks, scholarships, and many other community assets,
thanks to the generosity of the organizations sponsoring charitable gambling in our area.

 Although I have seen the benefits of charitable gambling, I also understand the need for
its regulation. Charitable gambling is a cash business, and an enormously  succesful
one. The Attorney General's office plays a significant role in the regulation of charitable
gambling by providing legal services to the Gambling Control Board and by prosecuting
individuals that abuse our trust by stealing charitable gambling funds away from
legitimate beneficiaries. As Attorney General, I will insist on the tough regulation of
charitable gambling and I will dedicate the resources needed to prosecute persons who
violate the law.

 However, tough regulation does not mean over-regulation. I will challenge the
Gambling Control Board to review and eliminate those rules which are unnecessary and
provide no reasonable regulatory benefit. I will also ask the Board to demonstrate the
regulatory need for any new rules it intends to adopt.

 Charitable gambling is successful in this state; due largely to the thousands of dedicated
people involved in the industry. We need a regulatory system that permits successful
charitable gambling, while at the same time punishes those who chose to ignore or
violate the law.

Did Not Respond

Governor Candidates

Mark Dayton - DFL

Jesse Ventura - Reform

Attorney General Candidates

David Lillehaug - DFL