Misinformation: Why doesn't the NY Lottery pay for public schools?
The winners of the $201 million Powerball ticket, all employees of the Costco in Melville, attended the New York Lottery news conference at the store Thursday morning. (June 16, 2011) Credit: Ed Betz
MISINFORMATION: SETTING THE RECORD STRAIGHT
Ever submitted a letter to the editor and wondered why it wasn’t published? Sometimes – not always – it’s because Newsday’s research revealed that the information in the letter wasn’t quite accurate. So, the letter disappears into a void, which may leave writers wondering what happened. That's why we're introducing this regular feature, Misinformation, on our blog -- to try to set the record straight about a wrong fact or impression.
Today’s letter reads, “Newsday should do a full-scale investigation of the New York Lottery. I would like to know how all the millions of dollars, that were supposedly for the schools, are being spent.”
The writer goes on to wonder why property taxes for schools are so high if the Lottery exists to defray the school costs. Certainly, when you see the lines of ticket-buyers for the $640-million jackpot like the one that hit in March, you wonder whether their money couldn’t pay for a few textbooks.
The Lottery’s website says that in 2011, the Lottery took in nearly $7.9 billion and paid out nearly $4 billion in prizes. Another $3.1 billion went to education. The rest paid for marketing, salaries and other expenses. You can see a breakdown here.
Less than half the money going for education – that’s probably not what voters expected in November 1966, when they approved an amendment to the state constitution to set up the lottery. At the time, New Hampshire was the only other state running a lottery.
The constitutional amendment said that lottery proceeds, minus prizes and operating costs, "shall be applied exclusively to or in aid or support of education." When lottery tickets went on sale in 1967, they were promoted as “your chance of a lifetime to help education.”
New Yorkers might be happier if they could see the lottery money broken out on their school budgets. But nothing is that simple when it comes to budgets, is it? The lottery pays its $3 billion or so each year into the state’s general fund, and the legislature and governor determine how much will go to schools. They just approved $20.3 billion for the 2012-13 school year, which will be distributed based on a complicated formula that takes into account a district’s wealth and need. Local property taxes and federal funds make up the rest of the school budget.
Are lottery proceeds being used appropriately? Tell us what you think.
Do you have a different public policy question for Misinformation? Send it to letters@newsday.com.
