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Lottery Prizes Could be Stingier Under Budget Proposal

``The plan is being pushed by Beacon Hill Republicans, including acting Gov. Jane Swift, as a way to raise revenues without new taxes.

``Now, as the state's budget woes continue to worsen, some Democrats who initially rejected the idea are giving it a second look.

``Massachusetts currently has the highest Lottery payout in the country, returning about 71 percent of the money bet on the games in the form of cash prizes.

``Swift has suggested dropping that payout to about 63 percent. The cut would pump an extra $274 million into the state budget, she said.

``Democrats dismissed the idea at first.

``...But now, facing a new $400 million to $600 million spending gap, some Democrats say the idea should be given serious consideration. Lawmakers who have already approved a $1 billion tax package and voted to cut state services are looking to avoid deeper cuts or even higher taxes.

``'The more we look into it and the more the revenue numbers decline, I think the more justifiable it is to at least adjust (the payout rate),' said Senate Ways and Means Chairman Mark Montigny, D-New Bedford.

``...Exactly how the plan would work isn't clear. A spokesman for acting Gov. Jane Swift said the lottery could either decrease the frequency of prizes or lower the amount of individual prizes.

``Either plan could kill the lottery goose, according to state Treasurer and Democratic gubernatorial candidate Shannon O'Brien, who oversees the lottery. Lottery revenues are funneled back to communities as local aid.

``...But even some lottery fans think the state should consider lowering prizes if it can ease the budget crunch

``...The average payout rate of all state lotteries is 55 percent..."

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