What do Oregon's public schools, businesses, workforce, state parks and salmon
all have in common? They all receive Lottery profits to help them prepare
for the future!
Prior to the current biennium (2003-05), all Lottery profits went to helping
fund Oregon's K-12 schools, and to strengthening Oregon's economy. Constitutional
amendments approved by Oregon voters in 1984 and 1995 earmarked Lottery profits
for economic development and public education. In November 1998, 65% of Oregon
voters approved another Constitutional amendment that added parks and salmon
restoration to that list of allowable uses of Lottery proceeds.
Since the Lottery began in 1985, over $3.4 billion in Lottery profits has
gone to public education and economic development programs throughout Oregon.
During that same time, players have won over $8.5 billion in prizes, and almost
$2 billion has been paid to Oregon businesses for services and supplies needed
to operate the Lottery.
The Oregon Constitution and legislative statutes govern how and where Oregon
Lottery
® dollars are distributed, and defines what types of programs can receive
Lottery funds. It also requires that the Lottery be funded entirely by its
sales; no tax dollars or other public funds are used to operate the Oregon
Lottery
®.
The Oregon Constitution now channels Lottery profits to economic development,
public education, state parks, and salmon restoration. It also requires that
at least 84% of the Lottery's total annual sales be returned to the public
in the form of prizes to players and profits to help fund programs benefiting
the public good. In the last fiscal year, the Oregon Lottery returned 97%
of sales to the public in the form of prizes ($1.1 billion) and profits ($387.1
million).
In the 2001-2003 biennium, the Legislature allocated Lottery dollars in the
following manner:
EDUCATION (69%)
State School Fund - $352.6 million
Education Endowment/Stability Fund - $110.7 million
Department of Education/Debt Service - $42.4 million
Intercollegiate Athletics/Academic Scholarships - $5.2 million
Total = $511 million |
ECONOMIC DEVELOPMENT (15%)
Economic Development Department - $72.4 million
State Fair/Debt Service/Other - $7.3 million
Westside Light Rail - $8.1 million
Counties/Local Economic Development - $24.3 million
Total = $112.1 million |
PARKS & NATURAL RESOURCES (15%)
Parks and Salmon Restoration Projects - $110.7 million
Total = $110.7 million |
PROBLEM GAMBLING TREATMENT FUND (1%)
Gambling Addiction Treatment Services - $6.2 million
Total = $6.2 million |
State law requires that at least 50% of the Lottery's total annual sales be
returned to the public in the form of prizes. In FY 03, the Lottery paid over
65% of its game sales from Megabucks, Scratch-its, Powerball, Keno, Breakopens
and Sports Action as prizes. The prize pay-out percentage for every dollar
played in Video Lottery was 94%.
Fiscal Year 2003 - Prizes Paid by Game
| 2003 Prizes By Game |
| Game |
Prizes Paid |
|
Game |
Prizes Paid |
| Scratch-its |
$89.6 million |
|
Breakopens |
$2.2 million |
| Megabucks |
$34.1 million |
|
Powerball |
$22.6 million |
| Keno |
$75.1 million |
|
Pick4 |
$0.9 million |
| Sports Action |
$5.4 million |
|
Video Lottery |
$858.6 million |
| Win for Life |
$4.8 million |
|
|
|
State law limits Lottery operating expenses to no more than 16% of its total
annual sales. In the last fiscal year, the Lottery used less than 4% of its
total sales for operating expenses, and turned over the balance as additional
profits for education and economic development programs.
Oregon Lottery operating expenses fall into three basic categories:
- Retailer Sales Commissions - $190.8 million (FY 03)
- Game Vendor Expenses - $14.1 million (FY 03)
- Lottery Administration - $52.6 million (FY 03)
(facilities, computers, vehicles, staff, advertising, supplies, etc.)
The voters of Oregon decide the general types of programs that can receive Lottery dollars. In 1984, the pressing need at the time was the economy so profits were dedicated to economic development and job creation programs. Ten years later, Oregon's robust economy had become a national leader, but finding adequate funding for public education was the new challenge. In 1995, voters passed a constitutional amendment - by a nine-to-one margin - that added financing of public education to the allowable uses of Lottery proceeds. In 1998, voters approved a constitutional amendment that dedicates 15% of Lottery proceeds to parks and salmon restoration projects.
That's the job of our state legislators, who meet every two years to decide which programs and projects will receive Lottery funds. Certain programs receive dedicated funding. For example, the Education Endowment Fund, which voters created in 1995, automatically gets 15% of all Lottery profits. Parks and salmon restoration projects also automatically receive 15% of all Lottery profits. Lottery-backed bonds for schools, transportation, state parks and clean water projects must be paid before any other allocations are made. Sports Action game earnings go directly to intercollegiate athletics and scholarships, and 2.5% of Video Lottery net receipts go back to the county of origin for local economic development projects. But the majority of Lottery funds are there for your elected officials to distribute based on where the need is greatest for economic development, education, and parks and salmon.
Economic and Community Development - Loan and Grant Information
If you would like more information about the process to apply for Lottery-funded
business loans and community development grants and loans through the Oregon
Economic and Community Development Department, call 1(503) 986-0123.
For more information about other local economic business development assistance,
call the number of the Regional Development Office listed in your area:
