Reporting from Sacramento -- Even the California Lottery is getting hit by the bad economy.I remember back in the 80's when the lottery was sold to Californians as additional funding for the schools, not primary funding. However, when lottery revenue started pouring in the legislature pulled funding for schools from the budget and replaced it with the money that was coming from the lottery. Instead of schools gaining additional funding as promised, it simply replaced what the legislature took away.
The agency is reporting a precipitous drop in ticket sales that will hurt schools and could undermine the governor's plan to use lottery funds to balance the state budget starting next year.
Lottery revenue dropped $260 million, or 8%, for the fiscal year ending June 30. It was the second year in a row that ticket sales had declined.
With a percentage of lottery revenue dedicated to education, the dive in sales means $106 million less for schools this year and $186 million less than was provided three years ago.
State Sen. Dean Florez (D-Shafter), chairman of a Senate committee that oversees the lottery, blamed the drop on "the sour economy" and a decline in disposable income of potential ticket buyers. ...
"It makes it hard for the governor's plan to balance future budgets," Florez said, "but it certainly argues for updating the game to make it more attractive, meaning giving people the product that they want, rather than keep doing the same thing over and over again."
State Supt. of Schools Jack O'Connell said the drop in lottery money for education is "another warning signal to our schools" and an indication that the governor and Legislature need to increase education funding from other sources.
"It's a concern," he said.
The new numbers show that the governor's budget proposal "relies on unrealistic assumptions for lottery revenue in the future," O'Connell said.
If you live by gambling, you die by gambling.
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