Nixon orders review of Missouri Lottery after revenues plummet

JEFFERSON CITY, Mo. — The Office of Administration is conducting a “comprehensive review” of the Missouri Lottery at the behest of Gov. Jay Nixon to find out why the program’s revenues for education sank 23 percent despite an increase in ticket sales in FY2014.

Statute dictates that 45 percent or more of the money generated by the lottery must go to prizes, with the rest earmarked for public education. State Budget Director Linda Luebbering will oversee the review.

“We need to find out the reality of what happened around the lottery in fiscal year 2014,” Luebbering said. “It was a particularly challenging year for the lottery, even though the revenue was up, the amount going to education was down and we need to asses whether there is something we can do, or some industry standards perhaps, that we can look at.”

Luebbering said Nixon asked for the review to be completed sometime in the fall, giving her several months to assemble information. Once complete, it will largely be up to the Missouri Lottery Commission to decide if, and how, to implement any changes to the program.

State lawmakers appropriated $315 million to public education in lottery funds for FY2014, more than Nixon himself recommended, but with both numbers short of actual revenues. The lottery only brought in $267 million.

“For more than two decades, Missourians have counted on the lottery to help provide the resources our schools need to deliver the high quality education our kids deserve,” Gov. Nixon said in a press release. “Today, we have a responsibility to make sure the lottery keeps its promise to our public schools in an efficient and effective manner. This comprehensive review will help ensure the Missouri Lottery continues to fulfill its mission of providing a stable funding source for Missouri schools now and for years to come.”