In an effort to direct more funds to education through enhanced oversight policies, Missouri Governor Jay Nixon recently replaced four of the five members of the Missouri Lottery Commission. During the past decade, the amount provided to education consistently had been above 25 percent annually but declined to 23.1 percent in the 2014 budget despite record sales.
In July Nixon wrote, “Two decades ago, Missouri voters spoke loud and clear that the proceeds from the Missouri Lottery should benefit our public schools, and it’s clear that the lottery has some work to do if it’s going to keep delivering on that promise.” At the time Nixon directed the state budget office to review the lottery’s operations. In its recent report, the budget office announced several recommendations, including revising the lottery’s contracting procedures, re-examining how much of its proceeds go to prizes and advertising and soliciting an independent analysis on the right balance between prizes and education transfers. The budget office report said Missouri ranked fourth in the nation over the past decade in the percentage of lottery revenues devoted to prizes.
Between 2005 and 2014, lottery advertising expenses rose from $2.1 million to $16 million annually, as lottery officials told legislators that would result in greater sales and, as a result, more funds for education. However, the budget office report said, “Based on actual transfers to education, it is unclear if this was actually the case.”
Although their terms had expired, all five Lottery Commission members had continued to serve several years. Nixon apparently seriously began searching for new members after the lottery posted lower education transfers during the fiscal year that ended June 30.
