Where the Money Goes Chart Idaho Lottery

Where The Money Goes, Fiscal Year 2008

Fiscal Year 2008 was an extraordinary year for the Idaho Lottery as it witnessed records in sales, prizes paid to players, and commissions to retailers. The achievement deserving the highest accolades is for returning another record dividend to the people of Idaho. For the fifth consecutive year, Idaho public schools and buildings benefitted when Governor C.L. “Butch” Otter accepted another record dividend check for $34.75 million – three quarters of a million dollars more than promised. With this year’s check, the Idaho Lottery has returned $402.3 million to public schools and buildings in its 19 year history.

Since the first dividend check of $17,225,000 on July 19, 1990, Idaho Lottery dividends have been equally apportioned between the State Department of Education School District Building Account and the State Department of Administration’s Permanent Building Fund. This year, both the School District Building Account and the Permanent Building Fund each received a check equal to the entire 1990 dividend check, plus each had an added bonusof $150,000.

Funds generated by the Idaho Lottery’s annual dividend account for roughly 37% of budgeted items for the Department of Administration’s Permanent Building Fund. The Department of Administration uses these funds for alterations and repairs to existing facilities, and capital improvements/projects approved by the Idaho Legislature. Lottery proceeds are used to provide safe work environments for the Gem State’s work force, repair historical facilities and to improve the quality of every college campus in Idaho.

A record $17,375,000 was returned to the Department of Education for distribution to the State’s 115 school districts and 29 public charter schools. Each year’s apportionment is distributed to the districts based on the number of enrolled students and the average daily attendance. As directed by state statute, school districts across Idaho must use dividend dollars only for maintenance and operation budgets. As the Department of Education strives to raise student achievement, proceeds from the Idaho Lottery help improve the quality of the public education facilities while allowing districts the flexibility to focus their spending on their top priorities – students and classrooms.

Across Idaho, districts are finding innovative ways to meet the challenges of operating modern school facilities while updating the State’s older institutions. Lottery dollars are spent in every Idaho community on school improvement projects like providing new roofs, removing asbestos, and adding new heating and lighting systems to aged buildings. Schools have remodeled classrooms to accommodate growth in their student population while others have provided safety fences around playgrounds and repaired broken sewer lines. Security systems have been installed and sidewalks have been repaired to improve student safety. Other districts have made technology wiring upgrades to their schools.

Below is a chart of how Lottery revenues were divided and distributed in Fiscal Year 2008:

PRIZES: In Fiscal Year 2008, players received more than $81 million in prizes. This included 138 people winning more than $10,000. During the year, the Lottery had a record of 16 players win $200,000 or more on Powerball. There were also three jackpot winners on Wild Card including the largest winner in the game’s history who took home $2.78 million. The Idaho Lottery also had three new millionaires.

DIVIDEND: The annual dividend to benefit public schools and buildings accounts for 25.4% of all revenue spent on the Idaho Lottery. The dividend is apportioned equally between the State Department of Education’s School District Building Account and the State Department of Administration’s Permanent Building Fund.

RETAILER COMMISSIONS: The Idaho Lottery boasts a network of approximately 880 retail partners. These Idaho businesses earned a record $8 million in retailer commissions and bonuses (6%), all of this enhances the economic opportunities in Idaho.

PROGRAM OPERATIONS/GAME SUPPORT: This includes the costs associated with providing our Lotto games. Program operations also covers the cost associated with printing and distributing PullTabs and Scratch™ tickets.

ADMINISTRATION: Administration is 3.1% of Lottery funds, and is used for Lottery administration to support the 47 full-time employees and the Lottery’s operating costs.

ADVERTISING: And finally, advertising makes up the smallest percentage of revenue only 2.2%. These funds are used to support Lottery games through appropriate channels to increase sales.