FMFOF Ad Letter and Transcripts

WBAL-AM
3800 Hooper Avenue
Baltimore, MD 21211-1313

Re: For Maryland, For Our Future Misleading Radio Ads

Dear Station Manager,

I am the Senior Advisor to Marylanders United to Stop Slots ("MUSS"), a ballot issue committee formed under Maryland Election Law. I write with regard to two advertisements by For Maryland, For Our Future ("FMFOF"), also a ballot issue committee formed under Maryland Election Law. The texts of two radio advertisements are attached. These advertisements are false and misleading, and knowingly misstate facts and positions on the issue of Question 2, the slots constitutional amendment on the ballot this fall. For the sake of both FCC licensing requirements and the public interest, your station should refuse to continue to air these advertisements immediately.

The first radio ad in question is entitled "Choice" and it contains two egregious errors of fact. First, the ad makes the claim that, if passed, the slots constitutional amendment will "guarantee" $650 million for Maryland schools. Specifically, the ad states, "Passing slots guarantees 650 million dollars in new education funding each year." Simply put, this is a lie. There is no "guarantee" of any amount of money from slots for education. The number used by FMFOF is a revenue "estimate" only, and that is for Fiscal Year 2013 – over 3 years away and it is certainly not a "guarantee" of $650 million for our schools. As any economist will admit, there is no "guarantee" of any amount certain from slot machines. In fact, in all likelihood, any money generated from slots will be much lower. However, this ad clearly and unambiguously states that there is, in fact, a guarantee. This is misleading and false in the extreme.

The ad "Choice" also claims that Question 2 will generate "new" money for education. Again, not true. As has been noted by the Baltimore Sun and other publications, the slots constitutional amendment, while creating an Education Trust Fund, does not require any overall increase in school funding. In other words, any money generated from slots will simply go to meet current obligations by allowing general fund dollars being spent now on education to be spent elsewhere. This is commonly referred to as a shell game and is not new money as it is commonly understood, i.e., as additional or more money for education. Moreover, slots proponents are now arguing that their gambling revenues will pay for everything from saving the horse racing industry to health care, storm water management upgrades to fixing the deficit. It is impossible, with a $1 billion deficit and an economy in trouble, to pay for all of this new spending and increase education funding, even with the most optimistic slots revenue estimates. Again, FMFOF seeks to mislead your listeners.

These two falsehoods in "Choice" are clearly meant to mislead and trick voters, and we urge you, if this ad has been submitted for play on your station, to cease airing it immediately.

The second ad being run by FMFOF is entitled "Taxes" and contains an out right lie regarding the anti-slots committees. The ad makes the claim that those opposing slots have proposed a $700 million tax increase to make up for an alleged and, frankly made up, short fall of $700 million. The anti-slots groups in this campaign have made no such proposal. Another statement meant to mislead voters. You should also note that this ad claims that slots will generate $700 million for education, with slots having miraculously generated an additional $50 million dollars for education from the taping of one ad to the next. Soon they will be talking about real money. Finally, this ad also makes the misleading "new" money for education claim discussed above in a slightly different manner by claiming that it "pumps almost 700 million dollars into local schools." Again, there is no new money for schools and there is no "guarantee" that this amount of money will in fact appear.

This ad by FMFOF makes a direct and malicious false claim regarding taxes that is meant to mislead the voters on the position of anti-slots committees and is wrong. We again urge you, if this ad is now airing on your station, to cease airing it immediately.

Unlike federal candidates, independent political organizations do not have a "right to command the use of broadcast facilities." See CBS v. DNC, 412 U.S. 94, 113 (1973). Because you need not air this advertisement, your station bears responsibility for its content when you do grant access. See Felix v. Westinghouse Radio Stations, 186 F.2d 1, 6 (3rd Cir.), cert. denied, 314 U.S. 909 (1950).

Moreover, you have a duty "to protect the public from false, misleading or deceptive advertising." Licensee Responsibility With Respect to the Broadcast of False, Misleading or Deceptive Advertising, 74 F.C.C.2d 623 (1961). Failure to prevent the airing of "false and misleading advertising" may be "probative of an underlying abdication of licensee responsibility" that can be cause for the loss of a station's license. Cosmopolitan Broad. Corp. v. FCC, 581 F.2d 917, 927 (D.C. Cir. 1978).

These advertisements are false, misleading, and deceptive. We ask that you refuse to continue to air these advertisements.

We can be reached at (202) 442-7157 if you have any questions regarding this letter. Please contact us to inform us of your decision. Thank you for your attention to this matter.

Very truly yours,

Scott Arceneaux
Senior Advisor, Marylanders United to Stop Slot

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Taxes FMFOF-R08-01 Transcript:

Woman: Hey, have you heard the news about the slots referendum on the ballot in November?

Man: The slots plan? That all the teachers and law enforcement folks are supporting?

Woman: Mmhmm, that’s it. Question 2, it pumps almost 700 million dollars into local schools.

Man: With all the cutbacks in government services, we sure need the money.

Woman: We sure do. But have you heard how the opponents to slots are planning to makeup these budget shortfalls?

Man: Raise 700 million in new taxes.

Woman: That’s right, they just proposed 700 million dollars in new taxes.

Man: Geez, let’s recapture the millions Maryland slots players are already spending in Delaware, Pennsylvania and West Virginia, instead of raising taxes.

Woman: Well, this new slots proposal helps keep all that money home

Man: So we can invest in education without raising new taxes.

Woman: Mmhmm. Sounds like Question 2 makes sense for taxpayers, local schools and Maryland.

Man: Paid by authority For Maryland, For Our Future. George Rakis, Treasurer.

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A Choice FMFOF-R08-01 Transcript:

Man: In this year’s election, Maryland has a choice.

Woman: A choice?

Man: A choice that protects our schools by passing slots this November.

Woman: So Question 2 in this year’s election allows slot machines to help pay for education?

Man: That’s right. Passing slots guarantees 650 million dollars in new education funding each year.

Woman: 650 million each year for schools?

Man: Yes. For our local public schools, smaller class sizes and new facilities.

Woman: How can our schools afford not to pass slots?

Man: We can’t miss the opportunity. The social cost of cutting education is just too high.

Woman: Especially now that test scores for minority students are on the rise.

Man: We need to protect those gains.

Woman: We can. By passing slots, we’ll guarantee 650 million dollars for Maryland schools each year.

Man: So join classroom teachers in supporting Question 2. It’s the right thing to do for our schools, for our children, and for our future.

Woman: By authority For Maryland, For Our Future. George Rakis, Treasurer.