Lottery provides essential funds for state's schools

by Commissioner Gary Peters

As students and teachers prepare to head back to the classroom, it is timely that we recall the Lottery’s beneficiary, the state’s K-12 School Aid Fund. Not only do players win money in the Michigan Lottery, school districts also win—as all of the Lottery’s profits go to public education.

Second only to “What are the winning numbers?” is the question, “Where does the money go?” I am asked this frequently, whether I am out on Lottery business or at the health club on the treadmill. It is probably the number one question our Public Relations Division gets.

The answer is always the same: All Lottery profits go to the state School Aid Fund, which supports kindergarten through grade 12.

I’m proud to say that in fiscal year 2004, the Lottery’s contribution to the School Aid Fund was a record $644.8 million. And with the Lottery’s previous 31 years, the collective amount to education is over $11 billion.

Each month, we transfer money to the School Aid Fund, and the total amount for the year is part of the financial statement included in our annual report.

But the question nearly always has a second part: “If the Lottery gave that much money to education, why does my child not have current textbooks?” Or a computer? Or gym equipment—take your pick. This requires a bit more explanation.

While $644.8 million is a huge amount of money—can any of us even imagine it?—it cannot meet the financial needs of a state that is responsible for educating 1.7 million children. Each year, the state spends about $12 billion—yes, billion with a “b”—on K-12 education. Most people who ask us about our education funding are astounded to hear what the total cost is; it is really not a dollar figure any of us can grasp.

But what is important to me as Lottery commissioner, and what you as retailers must know, is that without the Lottery’s contribution, which is about 4 or 5 percent of the total school spending, schools would be in a serious financial predicament. When you are successful in selling Lottery tickets, you are successful in helping fund one of the most important ventures undertaken by state government—education. What you do does make a difference!

New Instants
• September 6: $2 Pac-Man Mania. In addition to cash prizes (with a top prize at $20,000), Pac-Man Mania will offer a chance to instantly win one of 20 tabletop Pac-Man arcade games. Each machine plays Pac-Man, Ms. Pac-Man and Galaga.
• September 12: $10 Blackjack Multiplier. Each ticket includes 10 individual Blackjack games. For each game, if the total of “Your Hand” is higher than the total of the “Dealer’s Hand,” the player wins the prize shown. After completing all 10 games, players multiply their winning prizes by the number of games won to determine their final winning prize. Players have chances to multiply their prize by up to 10 times.

Player City update
“Citizenship” in the Lottery’s Player City continues to grow by an average of 600 new members per week, and over 68,000 Lottery players are now registered at the site.

Player City is the Lottery’s Internet VIP Club, and membership is free. It offers exclusive contests and coupons, jackpot and winning-number alerts, surveys and e-mail alerts, as well as opportunities to earn Player City “points” for various on-site activities.

To access Player City, go to www.michigan.gov/lottery. Click on the Player City icon on the left side of the page and take a stroll through town.