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California Lottery Wants to Cut Education Funding

19 May 2004

CALIFORNIA – As reported by the San Francisco Chronicle: "The California Lottery, for the first time since it was created nearly 20 years ago, wants to shrink the percentage of its budget dedicated to funding public education in order to boost prize payouts in scratch-off games -- a move officials say ultimately would increase sales and, in turn, money for schools.

"If the Legislature and Gov. Arnold Schwarzenegger approve, the portion of lottery sales spent on the state's cash-strapped school districts will drop from 34 percent to 26 percent. But supporters say the move will cause overall play of the lottery to increase, as it has in other states, providing schools more money, not less.

"The shift would take at least six months to enact and would be phased in over three years. It would not affect the jackpots of Super Lotto, which are determined by how many tickets are sold. But it would spread more prize money around the scratch-off tickets, ultimately giving players of a planned new $5 scratch-off game a 65 percent chance of winning.

"…Despite the apprehension, other states -- including Massachusetts and New York -- have made similar moves successfully, said Dennis Sequeria, the California Lottery's chief deputy director…"

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