News

June 18, 2009

Lottery Transfers $259 Million to Education; Proceeds Raised Surpass $3.5 Billion

The Missouri Lottery sent its final monthly transfer of fiscal year 2009 to public education today, bringing the total transferred in FY09 to $259 million and the total proceeds generated to date to more than $3.5 billion.  Today’s monthly transfer of $20,885,991 is based on Lottery ticket sales in May.  The fiscal year transfer was less than 1 percent short of the Lottery’s goal of $260 million.

“We are obviously disappointed that we did not meet our goal,” said Larry Jansen, executive director of the Missouri Lottery.  “However, I am very proud of the effort made by our staff, our suppliers and our retailers in this difficult economy, and in spite of the fact that we have such limited resources to promote our products, I am pleased we were able to achieve at the level we did.

“The bright spot in this month’s transfer is that we surpassed the $3.5 billion mark in proceeds raised for the state, including public education,” Jansen said.

Jansen noted that one reason proceeds were lower in FY09 is due to fewer high Powerball jackpots.  During FY08, one jackpot reached $300 million, another jackpot was $275 million and two other jackpots exceeded $100 million.  But in FY09, $222 million was the highest the jackpot ever got.

“Combine less exciting jackpots with a flagging economy, and it made for a lackluster year of sales,” said Jansen.  “We worked very hard to keep sales and interest high during these challenging times.  When you consider the significant sales decreases that other businesses have experienced this past year, I think we did very well.”

Proceeds from Missouri Lottery ticket sales in fiscal year 2009 were used for a variety of public education programs including:  the Foundation Program, the A+ Schools Program, Special Education Excess Costs, the Virtual Schools program, the Classroom Trust Fund and funding for several public higher education locations. For a complete list of programs funded in FY09, visit the Lottery’s Web site at molottery.com.

From the start of the Lottery in January 1986 through fiscal year 2009, the Lottery has transferred more than $3.5 billion to the state and public education.

Each year, the proceeds are allocated by the governor and the state’s General Assembly during the annual appropriation process.  These funds represent approximately 4 percent of the annual funding required for Missouri’s public education system.

For each dollar spent on the Lottery, more than 96 cents goes back to the citizens of the state in one form or another.  Approximately 63.4 cents is returned to players as prizes, 26.7cents goes to the state’s public education programs, 6.1 cents pays for retailers’ commissions, incentives and bonuses, and 3.8 cents is used for administrative costs.

 
HISTORY OF LOTTERY PROCEEDS
FY87 $80,000,100.00 chart
FY88 $80,047,009.25 (+.05)
FY89 $93,102,306.37      (+16.3)
FY90 $75,000,000.00 (-19.4)
FY91 $76,179,083.01 (+1.6)
FY92 $66,082,246.00 (-13.3)
FY93 $72,129,289.00    (+9.2)
FY94 $110,573,071.00* (+53.3)
FY95 $125,169,977.37* (+13.2)
FY96 $132,311,303.00* (+5.7)
FY97 $134,201,860.00*       (+1.4)
FY98 $147,134,560.00* (+9.6)
FY99 $150,578,471.00* (+2.3)
FY00 $155,819,955.00* (+3.5)
FY01 $156,918,454.00* (+.70)
FY02 $160,092,441.00* (+2)
FY03 $193,940,550.00* (+21.1)
FY04 $230,318,233.00*       (+18.8)
FY05 $218,285,010.00*       (-5.2)
FY06 $260,300,831.00* (+19.2)
FY07 $259,737,970.00* (-.2)
FY08 $265,051,179.00* (+2)
FY09 $259,006,283.00*       (-2.3)
Total $3,501,980,183**  

Transfers to General Revenue - $542,540,033.63
Transfers to Education (FY94 - FY09) - $2,959,440,148.37
*  All proceeds sent to public education.  All other years’ proceeds went to the General Revenue Fund.
**  unaudited figures
 





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