STATE LOTTERY BRINGS IN RECORD AMOUNT IN FISCAL YEAR JUST ENDED

JEFFERSON CITY -- Annual state lottery proceeds have increased 88.2 percent since the lottery's first year.

The Missouri Lottery transferred $150.6 million to the state's lottery proceeds fund for fiscal year 1999, which ended June 30. The FY 1999 proceeds were the highest in the 13-year history of the lottery.

For the first quarter of the current fiscal year, the state has taken in more than $49 million. The lottery has provided the state with $1.39 billion since its inception in January 1986.

The figures refer to the share of lottery money turned over to the state, not total sales.

The state took in $70.6 million more from the lottery last year than it did in FY 1987, when it earned $80 million.

Lottery proceeds have increased almost 127.9 percent -- $84.5 million -- since the all-time low of $66.1 million for FY 1992. Proceeds have risen seven consecutive years.

Through FY 1993, lottery proceeds went to the state's general revenue fund. Since then all lottery proceeds have been earmarked for education.

Proceeds have risen 36.2 percent, or $40 million, since that time.

Currently 30 cents of every dollar spent on lottery tickets goes to education. The bulk of lottery ticket sales -- 55 cents of every dollar -- go back to ticket buyers as prize money.

Of the remainder, 6.5 cents per dollar goes to retailers in the form of incentives, commissions and bonuses; and 8.5 cents per dollar goes to the Missouri Lottery to cover administrative and advertising costs.

Susan Goedde of the lottery said those percentages have remained relatively stable in recent years. However, fluctuations in sales can slightly skew the numbers, she said.

The per-dollar breakdown of lottery sales in not set by statute, Goedde said.

Unlike proceeds from riverboat gambling, lottery money does not go directly to local school districts through the state's foundation formula.

"It does all go for education, but the Legislature decides how it will be spent," said Gerri Ogle, coordinator for school administration with the Department of Elementary and Secondary Education.

Each year the Legislature allocates lottery proceeds for a variety of programs. Programs funded by lottery money vary somewhat from year to year.

Both DESE and the Department of Higher Education get a share of lottery proceeds.

Budget figures from the Office of Administration for the current fiscal year show DESE will get $64.4 million in lottery funding for various programs, while DHE will get $79.5 million.

An additional $40.5 million in lottery money will be allocated to both departments for a number of capital improvement projects. Those expenditures include $2.75 million for the Southeast Missouri State University River Campus and $650,000 for a vocational school in the Cape Girardeau School District.

Although the listed expenditures total more than the lottery took in last year, the shortfall is expected to be made up by interest accruing to the lottery proceeds fund.

Lottery income

Missouri Lottery proceeds:

FY 1987 $80,000,100

FY 1988 $80,047,009

FY 1989 $93,102,306

FY 1990 $75,000,000

FY 1991 $76,179,083

FY 1992 $66,082,246

FY 1993 $72,129,289

FY 1994 $110,573,071

FY 1995 $125,169,977

FY 1996 $132,311,303

FY 1997 $134,201,860

FY 1998 $147,134,560

FY 1999 $150,578,471

TOTAL $1,342,509,276

Note: Through fiscal year 1993 lottery proceeds went into the general revenue fund. Since then lottery proceeds have been earmarked solely for education.

Source: The Missouri Lottery Commission