|
Where does the lottery money go?
By Rep. Dan
Kristiansen
A question I am frequently
asked is: "Where does the lottery money go? I thought it was supposed to
go to
schools."
Many people may be
surprised to know that after the lottery was formed in 1982, the
Legislature directed its revenue to be deposited in the state's
general fund. That's the fund that pays for the day-to-day operations of
the state.
The lottery legislation
was approved during a time of recession and when the state faced economic
hardships, much like Washington is facing today. Since there was a great
need for funding in many areas, the Legislature was reluctant to direct
lottery revenue solely to education. Instead, the money received after
payouts, administration and commissions paid to retailers was directed
to the general fund. Since public schools take the largest share
of this budget, lottery money by default helped to support education in
our state.
Throughout the 1990s,
numerous measures were introduced in the Legislature to dedicate the
state's share of lottery revenue to public schools, but none passed.
Legislation providing for
funding of the Seattle Mariners' stadium in 1995, and the
Seahawks' stadium in 1997, contained a special sports-themed lottery game.
Revenue from those scratch tickets is still used to assist in paying
off the bonds.
The first successful move
toward dedicating lottery funds for education came on Nov. 7, 2000 when
voters approved Initiative 728. This measure redirected part of the
lottery revenue to the Student Achievement Fund, which was created by
the initiative to reduce class sizes. A small amount stayed with the
general fund, but the largest portion of lottery revenue was
redirected to the Education Construction Fund, which is used to
construct K-12 and higher education facilities.
During the 2007-09
biennium, about $200 million in lottery revenue was transferred to the
Education Construction Fund for modernization or replacement of schools.
For the 2009-11 biennium, $178 million of projected lottery revenue was scheduled to go to the
School Construction Fund. Unfortunately,
because of a projected $9 billion state budget shortfall, the
Legislature this year transferred about $194 million from the Education
Construction Fund into the general fund to help close the budget gap. It
was a one-time transfer approved through an operating budget measure,
House Bill 1244, which I voted against.
Another portion of lottery
revenue goes toward economic development and the Problem Gambling
Account, which helps people break gambling addictions. The Washington
Lottery Commission has created a Web page detailing "Where the Money
Goes" at
www.walottery.com.
Why is there a perception that
lottery money would be dedicated exclusively to education? Perhaps it
may be that in the 1970s, several bills were proposed to create a
lottery, including legislation that would have dedicated proceeds to
public schools. All of those measures died.
Nevertheless, the point
may be moot. Total expenditures for public schools in fiscal year
2007-08 exceeded $12 billion. Lottery proceeds make up less than
one percent of current spending on education. Our legislative
budget analysts say that if used exclusively for education, lottery
proceeds would run schools in Washington for less than two days.
That may be the biggest
eye opener for those who ask, "Where does the lottery money go?"
# # #
EDITOR'S NOTE:
State Rep. Dan Kristiansen, R-Snohomish,
represents the 39th Legislative District, and also serves as chairman of
the Washington House Republican Caucus. He can be contacted at (360)
786-7967 or from his Web site at:
www.houserepublicans.wa.gov/Kristiansen.
For more information, contact:
John
Sattgast, Senior Information Officer: (360) 786-7257
|