Powerball win could give a $10M boost to state's coffers
Friday, November 30, 2012
JEFFERSON CITY, Mo. -- A winning Powerball ticket purchased in Missouri will provide an unexpected, though modest, boost for state government coffers.
Budget director Linda Luebbering on Thursday said the state could collect approximately $10 million for income tax on the jackpot, assuming Missouri's winner opts for a lump-sum payment. The current year's budget is $24 billion, which includes about $8 billion from general tax collections.
"It's a good positive effect, but it's not significant in the $8 billion budget," Luebbering said.
Trex Mart convenience store in Dearborn, Mo., about 30 miles north of Kansas City, sold one of two winning Powerball tickets in the drawing Wednesday for a $587.5 million total jackpot. The other ticket was sold in Arizona.
The Missouri Lottery has verified the state's winning ticket and a news conference to reveal who bought the ticket is planned for this morning at a high school in Dearborn.
The winners will split the record $588 million Powerball jackpot.
Officials said the state could collect income taxes even if the newly minted millionaire only bought the winning ticket while passing through Dearborn and does not live in Missouri.
Missouri Lottery chief operations officer Gary Gonder said Thursday he could not divulge whether the ticket was bought by someone from Missouri.
The prospect of extra cash in state's coffers does not mean officials are planning a spending spree.
Senate Appropriations Committee Chairman Kurt Schaefer likened the expected boost in revenue from the lottery jackpot to a one-time funding source.
"Those things are generally a blip," said Schaefer, R-Columbia. "It's nice to have them, but operationally in a $24 billion budget, it tends not to make that much difference."
In addition to income taxes, revenue generate from the Missouri Lottery is used to fund education. On Thursday, Missouri Lottery Executive Director May Scheve Reardon said that during the buildup to the jackpot that began Oct. 3, revenue from lottery sales will generate more than $10.7 million for public education.