Changes to California Lottery
11/05/2009 11:09:54
For the first time in the history of the California Lottery, players are being given a chance to vote on big changes that would allow the state to borrow money from future lottery profits in order to balance the state’s budgets. The changes to the California Lottery would mean that the state would not see tax rises and the vote is happening on May 19th 2009. If put through the proposition will see some of the biggest changes ever seen in the way that lottery funding is allocated in California and will mean huge changes for education and state funding.
Unlike UK Lotteries that offer money for good causes alongside government taxes, America’s economy very much relies on revenue from state lottery games. The new proposition which would mean major changes for the California Lottery is called Proposition 1C and would allow the state to borrow $5 billion from future lottery profits to balance the state’s 2009-10 budget.
Currently the lottery is required to give school 34% of its revenues, the rest of the revenue goes into prizes and administration but under the new rooms lottery payments to educational institutions would end and the state fund would increase its payments to schools.
It has been argued that Prop 1C would allow the state to generate new funds without raising taxes and that education would still be guaranteed the same level of funding that it currently gets from the California State Lottery. Opponents however argue that the state should leave lottery funding as originally intended as to not cause major problems for the state or the lottery.
Other changes are also tied into Prop 1C including a proposition to make lottery prize payouts more than they are at present, encouraging more players to buy California Lottery tickets increasing funds for the state.
The vote will take place on May 19th and only then will we truly know what changes will take place and what this will mean for the state of California. If the changes go ahead they will be the first ever changes to the way the California Lottery is run since its launch in the 1980’s.
Page Last Updated: 02/06/2010 15:04:14
