The Lotto Pays for Education, Right?

Matt Sowash

Mar 27, 2019

From time to time you hear Michiganders remark, “why do we need to spend more money on schools and education, doesn’t the lotto pay for that?” Much like Bigfoot and the Loch Ness monster, this is one of Michigan’s biggest budget myths.

The Michigan lotto was first authorized by a constitutional amendment in 1972 and is governed by the Michigan Lottery Act of 1972. As part of that act, all unclaimed prize money, and net proceeds from games, is deposited into the School Aid Fund (SAF). Since 1973 when the lotto began, a total of $22.1 billion has been deposited into the fund. In 2018, the Michigan lotto boasted $941 million in contributions to the SAF or $2.5 million per day. That equates to roughly $600 for each Michigan student in a public K-12 school. Per the Michigan lotto, 26 cents of every dollar spent by the lotto goes to the SAF, while the remaining 74 cents goes to payouts for prizes, operational expenses, and retailer commissions.

While contributions of nearly $1 billion shouldn’t be minimized, it is not the silver bullet or golden goose that many believe. During the 2018-2019 Fiscal Year, the State of Michigan will spend $14.7 billion on K-12 education, but the lotto contributed just 6% of that total spending. So yes, your $2 scratch off ticket may provide some help to Michigan schools, but it is not the magic potion some believe it to be.

Michigan Legislative Consultants is a bipartisan lobbying firm based in Lansing, Michigan. Our team of lobbyists and procurement specialists provide a wide range of services for some of the most respected companies in America. For more on MLC, visit www.mlcmi.com or connect with us on LinkedIn and Twitter.