Falling lottery sales reduce education funds

By Steve Bousquet, Tallahassee Bureau Chief
In print: Wednesday, September 10, 2008

TALLAHASSEE — The Florida Lottery, long a cash cow for public education, can no longer pay its share of the bill because of falling ticket sales.

To make up for lost cash, the state has to dig around for spare change. In Tallahassee today, lawmakers will tap $48-million from an account filled with unclaimed checks, forgotten utility deposits and other unclaimed property to stave off cuts to education.

"It's an emergency," said Sen. Mike Fasano, R-New Port Richey, a member of the Legislative Budget Commission that must approve the change. "But I can appreciate people not buying lottery tickets when they're having trouble putting gas in their car."

Gambling critics in the Legislature say the new predicament is proof Florida should not rely so heavily on such revenue.

"Gambling is risky. It's stagnant. It's unpredictable, and it's not the best way to balance the budget, " said Rep. Ray Sansom, R-Destin, the likely next speaker of the House.

State economists say lottery sales are down due to the tough economy, particularly because of pain at the gas pump.

"Everything in one shape or fashion comes back to the economy," says Florida's chief economist, Amy Baker. "High gas prices did have an effect."

The prime evidence: Ticket sales in July were $321-million — $21-million less than in July 2007.

The introduction of the multi-state Powerball game in January is expected to rekindle sales, but total sales for all games in 2008-09 is expected to fall short of the estimate lawmakers used to build the budget in May.

The lottery leans heavily on gas stations to promote sales of its scratch-off tickets, Lotto and other games.

At a Chevron outlet on 34th Street S in St. Petersburg, one of the bestselling lottery outlets in the state, winning tickets are hung on a wall to entice bettors. But lately the number of people buying tickets has dipped.

"They just say gas prices are too high, and they ain't got no money to buy," said Lonnie Jones Jr., 51, a retired construction worker who spends time at the store. "They don't buy no tickets. They just buy the gas."

In July, state revenue experts lowered their estimates of yearly lottery sales by $343-million. That in turn reduced the estimate of how much money the lottery would contribute to the state educational enhancement fund by $48.2-million this year.

Lottery money helps to run schools, community colleges and universities and pays for Bright Futures scholarships and other financial aid. It accounts for about 7.5 percent of the state's $21.1-billion education budget.

To cover the lottery shortfall, the Legislative Budget Commission is expected today to reach into another pot of education money with a $135-million surplus. The money comes from unclaimed property, such as unclaimed utility deposits, uncashed checks and jewelry, coins and stamps left in safe deposit boxes.

In a statewide education budget of $21-billion, a $48-million shortfall may seem puny. But teacher-union lobbyist Marshall Ogletree of the Florida Education Association said the decline in lottery revenues is a troubling sign of a much bigger problem.

"It's a very scary trend," Ogletree said. "We're concerned about the bigger picture, that revenues keep falling. Right now, we're holding it together on a shoestring."

The revenue picture for the lottery could be worse, however. In January, Florida will become the 30th state to join the megajackpot Powerball game.

"It's slowly picking up, and we think Powerball will make a big impact," lottery spokeswoman Jacqueline Barreiros said.

Times staff writer Curtis Krueger contributed to this report. Steve Bousquet can be reached at bousquet@sptimes.com or (850) 224-7263.

Comments on this article

by Walter	Sep 15, 2008 10:23 AM
Florida needs to slice the Lottery winnings into a maximum amount of 10 million dollars. The pot is 50 million then 5 winers. Some states already have this procedure.

by denise	Sep 11, 2008 2:58 PM
If living outside miami why buy.

by Laura	Sep 11, 2008 2:41 PM
This is just another red flag to wave-helping to cover up the real reasons our education system is such a mess.

by jimmy	Sep 11, 2008 1:08 PM
i think that the florida lottery has made many mistakes one of them is cash 3 and play 4 two times a day i know of some players who now don't even play once a day anymore. i was exited about this games 2*per day but then i realised i can't afford it.

by CASHonly	Sep 10, 2008 8:00 PM
Michael: Florida Lotto has 53 numbers. BTW, the $2 and $3 options in Florida Lotto are a virtual ripoff. Play only $1 per six numbers.

by Sammy	Sep 10, 2008 7:20 PM
What an ignorant way to finance a state budget. I despise the leaders of Florida.

by Garry	Sep 10, 2008 5:45 PM
HOW CAN THIS BE - We were told the lottery was for the extras and the legislature would continue to fully fund education - If you wonder why we don't trust polititions - This is just ONE example. No wonder we have such a poor voter turn out.

by clararae	Sep 10, 2008 5:26 PM
I am sure the people have realized lottery tickets are a waste of time & money.

by The Children	Sep 10, 2008 4:33 PM
"Come on people, think of us and gamble away your money"

by concerned	Sep 10, 2008 4:22 PM
Why is OUR Childrens education depending on lottery sales!! Wake up Floridians!! Stop cutting back on our schools!

by Wolf	Sep 10, 2008 3:02 PM
Less retirees returning to FL = less people addicted to gambling and blowing their savings on the lottery. I can save $$ Billions with two words: HOME SCHOOLING - let the christian "hockey moms" teach their spawn whatever they want. Who cares anyway?

by Steve	Sep 10, 2008 2:45 PM
How about a more stable source of state revenue, like income tax? Floridians are spoiled and politicians are afraid to do what's necessary to continue esential services like maintain infrastructure, educate children and provide emergency services.

by FlyingDutchman	Sep 10, 2008 12:56 PM
The lottery needs to change the prize payouts and the odds of winning. I have better odds walking outside to barbecue with an unlit cigar, a bolt of lightning lighting my cigar and a second bolt starting the grill in the same afternoon.

by Disgusted	Sep 10, 2008 12:56 PM
Wake up Floridians! This is what our representatives our doing to us and with the help of the news compaines pushing their agendas hey St.PT why dont you do a complete expose on where our tax dollars are going or are you guys afraid of your friends??

by Snoz	Sep 10, 2008 12:56 PM
I got an idea. Let's cut taxes some more! Cut more state jobs and let the quality of life decline so that more taxpayers will leave the State. Causing less tax base, less govt, less people. Oh wait, we're already doing that. Nevermind.

by tim	Sep 10, 2008 12:56 PM
More and bigger gambling! Then the politicians can squander that money as well.

by Tom	Sep 10, 2008 12:56 PM
So they take in over 300 million in July. Does ayone really know where all that money goes?

by Dan	Sep 10, 2008 12:55 PM
Drilling for oil seems to work for Alaska. Last I checked, their citizens get a check every year for the oil coming from that state. Why would it be different here? Oil isn't the only solution, but it should be a part of one.

by Amazing	Sep 10, 2008 12:55 PM
FL lied about how the lotto money was going to be used yet STPT and other news organizations do nothing to investigate report no they help cover it up control the wasteful spending like school opening parties enormous salaries etc Irresponsible = FL

by Typical	Sep 10, 2008 12:55 PM
This is Typical the state puts their hands in and takes out money then cries we need more! Typical of news organizations to promote FL's agenda by writing stories about the lack of money instead of investigative reports of where the money is going!

by Honor	Sep 10, 2008 12:55 PM
Because the referendum was passed to take more of my property tax dollars and put it in the school system, I feel more ownership in how the monies are spent. Teachers earn enough and again, if they don't like it, move. School buses? Not.

by david	Sep 10, 2008 10:56 AM
the state is in a financial crisis and the governor and legislature are only waiting until after the election to address the problem; cut the waste in govt now and do not wait

by mumbles	Sep 10, 2008 10:56 AM
The Florida Lottery needs to hire a new ad agency for their commercials - stale ads lead to low sales

by Hellvis	Sep 10, 2008 10:56 AM
Real Teacher Real Parent hit the nail on the head. Once Jeb Bush saw all the money coming in from lotto, he diverted the states funding elsewhere leaving the lotto just to fund schools.

by bert	Sep 10, 2008 10:56 AM
Gambling is fun. I don't think that encouraging gambling is likely to get you any closer to heaven.

by Mark	Sep 10, 2008 10:56 AM
Yes JM, drilling for oil will solve everything. It will make property taxes go down, it will make the price of food and other goods go down, it will make home insurance go down. Darn you Nancy Pelosi and you evil Democrats!

by joetampa	Sep 10, 2008 10:56 AM
Perhaps the math challenged are beginning to figure out the odds! Gambling doesn't produce wealth, only redistributes it, mainly to the state.

by Typical Florida Education.	Sep 10, 2008 10:56 AM
Some people think that you only have a 1 in 22 million chance of winning the lottery, but by my calculations, you will either win or lose...that's 1 in 2. I'm going out and buying more tickets! Lottery = Redneck 401(k).

by Jay	Sep 10, 2008 10:55 AM
JM - You know that drilling for oil offshore will have absolutely NO IMPACT on gas prices, right? Or are you just repeating the noise you heard on talk radio?

by SickNTired	Sep 10, 2008 10:55 AM
"It's a very scary trend," Ogletree said. "We're concerned about the bigger picture, that revenues keep falling. Right now, we're holding it together on a shoestring." Welcome to the world the rest of us have been living in for the past 15 months!

by Kim	Sep 10, 2008 9:03 AM
food,clothing,shelter comes first.

by TFA	Sep 10, 2008 9:03 AM
Get an accurate accounting of where all the money actually goes. It is sophoned off to so many other causes that have nothing to do with what it was originally set up for.

by Betty	Sep 10, 2008 9:03 AM
And this is surprise to whom? Hey Charlie, why don't you add this mess to the great things that you have done for the State of Florida?

by Tino	Sep 10, 2008 9:03 AM
Imagine how low lotto ticket sales would fall if buyers learned math!

by John	Sep 10, 2008 9:03 AM
Low payouts, High Odds go figure why nobody is playing even in bad times people would play if they had better odds or if the payouts across the board were higher FL relied on this $$ and messed it up with greed by lowering the payouts and now they