What's happening
This bill amends the state finance law to require that at least 50% of lottery ticket sales support elementary or secondary education, and that such funds are in addition to regular state education aid.
Why it matters
Guarantees that lottery funds for education are truly “extra”. By mandating that lottery proceeds supplement, rather than replace, normal education funding, the bill aims to prevent the state from reducing its regular school aid in response to lottery revenue, ensuring more total money reaches schools.
Significantly increases the minimum education funding from lottery sales. Requiring that at least 50% of all lottery ticket sales go directly to elementary or secondary education could result in a substantial boost to school budgets, depending on annual lottery revenues.
Reduces administrative and sales costs of the lottery. The bill lowers the cap on lottery operational and agent compensation expenses from 15% to 10% of sales, potentially freeing up more funds to be directed toward educational purposes.
Establishes a clear funding formula and accountability. By specifying these percentages and rules in law, the bill creates transparency and predictability about how lottery money is allocated, helping the public and policymakers track whether lottery proceeds are benefiting education as promised.
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Who cares
- Likely support
School districts
The bill would require at least 50% of lottery ticket sales revenue to support elementary or secondary education, in addition to otherwise appropriated state funding.
Division of the Lottery
The bill would lower the combined cap on lottery expenses and sales-agent compensation from 15% to 10% of ticket sales, excluding authorized machine and other capital equipment purchases.
Lottery sales agents
Their compensation would count toward the reduced 10% cap alongside lottery operating expenses.
State education budget officials
The bill would require them to calculate other state aid to school districts without counting lottery revenues made available under this section.
Headline styles
Guarantee Lottery Funds for Schools
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to rules
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4948
2017-2018 Regular Sessions
IN SENATE
March 3, 2017
Introduced by Sen. DIAZ -- read twice and ordered printed, and when printed to be committed to the Committee on Rules
AN ACT to amend the state finance law, in relation to the proportional distribution of moneys realized from the state lottery
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 4 of section 92-c of the state finance law is amended by adding a new paragraph e to read as follows:
e. Notwithstanding any inconsistent provision of this section, any moneys paid in support of elementary or secondary education pursuant to the provisions of this section shall be in addition to any moneys otherwise appropriated by the state for such purposes. Any state aid otherwise required or made available to the school districts of the state shall be calculated as if the provisions of this section and the revenues made available by this section are not in force and effect.
§ 2. Subdivision 7 of section 92-c of the state finance law, as amended by chapter 92 of the laws of 1976 and as renumbered by chapter 913 of the laws of 1977, is amended to read as follows:
7. In no fiscal year shall the total amount paid from the fund for expenses of the lottery, exclusive of expenditures for machines or other capital equipment which the division of the lottery is authorized to purchase for the operation of the lottery, exceed an amount which, when added to any amount retained by lottery sales agents as compensation for their services, equals [fifteen] ten percent of the total amount for which lottery tickets are sold during such fiscal year.
§ 3. Section 92-c of the state finance law is amended by adding a new subdivision 7-a to read as follows:
7-a. Notwithstanding any inconsistent provision of this section, in no fiscal year shall the total amount paid from the fund in support of elementary or secondary education pursuant to the provisions of this
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07292-01-7
S. 4948 2
section be less than fifty per centum of the total amount for which lottery tickets are sold during such fiscal year.
§ 4. This act shall take effect on the first of April next succeeding the date on which it shall have become a law.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the state finance law, in relation to the proportional distribution of moneys realized from the state lottery
Purpose or general idea of bill
This bill would provide funds for elementary or secondary education, from the fund collected by the state lottery.
Summary of specific provisions
Section 1. Amends the State Finance Law, section 92-c, subdivision 4. Adds a new paragraph e. Provides that any funds paid to elementary or secondary education from the funds established in this section shall be in addition to any other state funds appropriated for such purpose.
Section 2. Amends the State Finance Law, section 92-c, subdivision 7. Reduces from 15% to 10% the amount retained by lottery sales agents as compensation.
Section 3. Amends the State Finance Law, section 92-c. Adds a new subdivision 7-a. Requires that that total amount paid from the fund in support of elementary or secondary education shall not be less that 50% of the total amount for which lottery tickets are sold during the fiscal year.
Section 4. Effective Date
Existing law
Article 6, section 92-C, establishes the State Lottery Fund.
Justification
A recent report by the Alliance on Quality Education (August, 2014) estimates that public schools in New York State are underfunded by $5.9 billion in total Foundation Aid and GAP Elimination Adjustment funding. Additionally, New York State owes 2.3 times more to high need schools than it does to wealthy schools. This bill attempts to address this problem by increasing the amount of revenue to the education system in New York State.
Prior legislative history
2016: S.480-REFERRED TO RULES 2105: S.480- REFERRED TO RULES 2014: S.257 - Referred to Rules/A.5228 - Referred to Ways and Means 2013: S.257 - Referred to Rules/A.5228 - Referred to Ways and Means 2012: S.307 Referred to Racing, Gaming and Wagering/A.5593 - Referred to Ways and Means 2011: S.307 Notice of Committee Consideration Requested/A.5593 - Referred to Ways and Means 2009-10: S.2215 - Referred to Rules/A.331 - Enacting Clause Stricken/A.10727 - Referred to Ways and Means 2007-08: A.1840 Referred to Ways and Means
Fiscal implications
None
Effective date
This act shall take effect on the first of April next succeeding the date on which it shall have become a law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.