The lure of $613 million in state tax-relief funds for public education has proved irresistible to every school district in the state — except one.

Eastern Lancaster County school board May 29 voted against accepting the district's share of the money — $441,818 — because it was generated through slot-machine gambling.

In a 5-3 vote, the board rejected the funds and condemned gambling, saying Elanco "should not be associated in any manner with the social ills associated with slot machine operations."

"We just felt it was a really strong moral issue," school board president Loren Martin said. "As an individual, I am opposed to funding public education with gambling revenue. I think it's a foolish path to go down."

The decision "was difficult in a sense because of the economic times we're going through," board member Thomas Wentzel said.

"But just judging from the people I've talked to — I'm a farmer — a lot of people in the community are dead set against (gambling)."

The board's action means the owners of 6,644 properties who qualified for a farmstead or homestead exemption won't get a $66.53 reduction on their tax bills for 2008-09.

If the funding had been accepted, it would have nearly offset the $69 increase in school taxes the average Elanco property owner will pay in 2008-09.

Under state law, the school district now must ask residents to decide if the district will accept tax-relief money in 2009-10. A referendum question will be placed on the Nov. 4 general election ballot.

But to school board member Alex Sitar, residents already have voted — by seeking homestead/farmstead exemptions, which qualify them for tax relief.

Seventy-two percent of all Elanco property owners sought and received exemptions, indicating that most people in the community want slots-funded tax relief, he said.

"My feeling is we had no right to vote on it," he said. "It's up to each individual homeowner to decide if it's right."

Those who oppose gambling should not apply for an exemption, he said, or should give the money to charity.

Instead of leaving the decision up to each resident, the school board took matters into its own hands, Sitar said.

"Their feeling is they don't like gambling money, and we need to send a message to Harrisburg — and that was it," Sitar said. "I was shocked.

"I think once people know what happened, they're going to be livid. It doesn't sound like a lot (of money), but in this time, why would we do that? That's crazy. That's a tankful of gas."

Even if voters in November reject the board's action, Elanco can't recoup the $441,818 earmarked for the district in 2008-09. That money has been returned to the statewide funding pool for next year's tax relief.

Joining Sitar in opposing the board resolution were Glenn Yoder and Theresa Clay. The five who supported the measure were Wentzel, Martin, Charles Trupe, Debra Reimers and Rosanna Hersh.

The ninth member, Richard Caswell, was not at the meeting.

Martin said he understands how board members would be tempted to take the money in light of the recent economic downturn.

But residents won't stand for it, he said.

"We do have a lot of folks in our community who have spoken out in the past to say that we don't want to have our school funded by gambling and that we don't support gambling," he said.

"I think it's kind of ironic that we bring something into the state that creates social problems in our families, and we're using it to fund education.

"It just doesn't make a lot of sense."

E-mail: bwallace@lnpnews.com