

{"id":847,"date":"2021-08-12T01:11:00","date_gmt":"2021-08-12T01:11:00","guid":{"rendered":"https:\/\/stand.org\/illinois\/?p=847"},"modified":"2022-07-09T01:18:12","modified_gmt":"2022-07-09T01:18:12","slug":"confused-about-whether-lottery-money-really-funds-education","status":"publish","type":"post","link":"https:\/\/stand.org\/illinois\/our-stories\/confused-about-whether-lottery-money-really-funds-education\/","title":{"rendered":"Confused About Whether Lottery Money Really Funds Education?"},"content":{"rendered":"\n<p><em><a href=\"http:\/\/stand.org\/illinois\/wp-content\/uploads\/sites\/4\/2022\/07\/ConfusedAbout_WhetherLotteryMoneyFundsEducation.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Download this column as a PDF.<\/a><\/em><\/p>\n\n\n\n<p>You could figuratively say we \u201cwon the lottery\u201d when we got the COVID shot, an unprecedented marvel of science that took just a year to go from discovering a deadly new disease to testing and securing emergency authorization for a vaccine to guard against it. And here we are, living in the country with the most innovative scientists who miraculously developed these vaccines, which we are all privileged to have access to now.<\/p>\n\n\n\n<p>Every Monday from July 12 \u2013 August 16, three vaccinated Illinoisans can also&nbsp;<em>literally<\/em>&nbsp;say they won the lottery. If you were vaccinated in Illinois, you\u2019re automatically in the running for the prize. (And if you&nbsp;<em>aren\u2019t&nbsp;<\/em>vaccinated, hurry! There are regional drawings today, August 12, with the last drawing coming on August 26, when two grand prize winners will win $1 million each.) Even vaccinated Illinois youth have a chance to win $150,000 scholarships throughout the summer.<\/p>\n\n\n\n<p>This got me thinking about an age-old question that comes up all the time: \u201c<strong>Wasn\u2019t the lottery supposed to fund public education?\u201d The short answer: It does, but it\u2019s not nearly enough money.<\/strong>&nbsp;The Illinois Lottery generates about $700 million each year that goes to the Common School Fund. That $700 million is a lot of money but still only a drop in the bucket compared to how much is needed to fully fund public education. The Illinois State Board of Education\u2019s general funds budget is about $9 billion. And that doesn\u2019t even include the additional billions in early childhood expenses that are appropriated through other agencies, higher education costs, or teacher pensions. And of course, keep in mind that none of these things are fully funded at their current appropriation level.<\/p>\n\n\n\n<p>But, of course, there\u2019s a longer answer, too. When the lottery was created in 1974, there was plenty of\u00a0<a href=\"https:\/\/ilga.gov\/Senate\/transcripts\/Strans78\/ST112973_SS3.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">debate<\/a>\u00a0on whether the proceeds should go to education, but in the end, they went to the General Revenue Fund and were allocated for\u00a0<a href=\"https:\/\/www.illinoislottery.com\/giving-back\/education\" target=\"_blank\" rel=\"noreferrer noopener\">regional public transit<\/a>. That changed in 1985, when the legislature passed a bill re-directing lottery receipts to the Common School Fund. However, that did not directly lead to an increase in education funding. In the\u00a0<a href=\"https:\/\/ilga.gov\/Senate\/transcripts\/Strans84\/ST041685.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">words of the sponsor<\/a>\u00a0from floor debate (all emphasis added by me):<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>\u201c\u2026<strong>we will not be adding one penny more necessarily<\/strong>, but it is just the intent of what we\u2026all thought originally might be done, that we will put all of the money in the Common School Fund. As the bill began its process through the legislature years ago, that\u2019s what the public was told and that\u2019s what we will do, but&nbsp;<strong>it will not increase the money per se<\/strong>.\u201d<\/p><\/blockquote>\n\n\n\n<p>Here\u2019s an opponent speaking up on floor debate:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>\u201c\u2026after you pass this bill and you come back here in a couple years, and you begin to get comments from those same constituents at the meeting who say to you, hey, you promised us lottery money, you passed it and we still didn\u2019t get it\u2026.&nbsp;<strong>It\u2019s a charade<\/strong>.\u201d<\/p><\/blockquote>\n\n\n\n<p>And another floor comment:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>\u201cI\u2019m going to support this proposition because if nothing else&nbsp;<strong>the public will feel better<\/strong>&nbsp;that they know that these funds are supposedly going to education,&nbsp;<strong>but we in the legislature know better, that in fact there\u2019s going to be more bureaucracy<\/strong>, there\u2019s going to be more accounting practices and it\u2019s going to cost the State more than it takes in.\u201d<\/p><\/blockquote>\n\n\n\n<p>(I seriously could lose days just reading old floor transcripts\u2026 fascinating stuff!)<\/p>\n\n\n\n<p>When I was a lowly budget analyst on the Illinois Senate staff, one of the most basic things we learned when analyzing an appropriation is to note which type of funding it uses:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Federal Funds.<\/strong>&nbsp;From the perspective of the State, federal funds are great! We appropriate them in the budget so we can spend them, but the State doesn\u2019t have much discretion over how much we get or how we spend it.<\/li><li><strong>Other State Funds.<\/strong>&nbsp;There are about a bazillion \u201cfunds\u201d that exist for various dedicated purposes. These are things like licensing fees that go into a fund that pays administrative costs for \u2013 you guessed it! \u2013 licensing. Or gas taxes that go to the Road Fund. Most \u201cfees\u201d end up in some \u201cother\u201d State fund. When the budget comes together, the legislature might look at whether there are fund balances in any of these accounts to \u201csweep\u201d into General Funds, but other than that, there\u2019s not a lot of flexibility over where they go.<\/li><li><strong>General Funds.<\/strong>&nbsp;Now THIS is the big one. This is the part of the budget that has a lot of discretion in how it\u2019s spent (and on which I spent most of my time analyzing a decade ago). \u201cGeneral Funds\u201d include the General Revenue Fund, the Common School Fund, and the Education Assistance Fund. Individual and corporate income taxes, sales taxes, and lottery proceeds are the sources of General Funds.<\/li><\/ul>\n\n\n\n<p>Maybe that\u2019s TMI. But here\u2019s the thing: if we really, really wanted to be 100% sure that lottery proceeds supplemented education funding on top of what was already going there, wouldn\u2019t we categorize it as an \u201cOther State Funds?\u201d That way, any increase in lottery proceeds would be in addition to whatever other General Funds increase was appropriated. The lottery&nbsp;<em>does&nbsp;<\/em>go the Common Schools Fund and the Common Schools Fund&nbsp;<em>does&nbsp;<\/em>go to education, but it isn\u2019t directly tied.<\/p>\n\n\n\n<p>Things got even more complicated in 2009. As a part of the&nbsp;<a href=\"https:\/\/ilga.gov\/commission\/lru\/2020TaxHandbook.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">capital bill<\/a>&nbsp;that year, the General Assembly outsourced management of the lottery to a private vendor and authorized internet ticket sales. The hope was that the private vendor would significantly increase lottery receipts to help fund capital projects. The Common Schools Fund would continue to receive the same lottery funds it got in 2009, plus inflation. Any amounts over that would go toward capital. This protected the lottery\u2019s funding for education, but also created even more disconnect between lottery sales and education funding levels.<\/p>\n\n\n\n<p>The bottom line, in my opinion, is that even though the lottery\u2019s tie to the Common School Fund wasn\u2019t intended to bring more funding for schools, that $700 million would have to come from somewhere if the lottery didn\u2019t exist. But when you buy a lottery ticket, you might actually be paying for bonds for capital projects.<\/p>\n\n\n\n<p>Remember, August 26 is the last drawing for the COVID vaccine lottery. If you want a chance at $1 million, make sure you get that vaccine! And if you don\u2019t literally win the lottery, you still win because you\u2019re inoculated against COVID and you\u2019ve done your part to stop community spread, keep schools open, and stay healthy.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Download this column as a PDF. You could figuratively say we \u201cwon the lottery\u201d when we got the COVID shot, an unprecedented marvel of science that took just a year to go from discovering a deadly new disease to testing and securing emergency authorization for a vaccine to guard against it. And here we are, [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":848,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","color_schema":"","footnotes":""},"categories":[28,38],"tags":[64,76],"class_list":["post-847","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-confused-about","category-equitable-funding","tag-confused-about","tag-equitable-funding"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.6 (Yoast SEO v27.6) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Confused About Whether Lottery Money Really Funds Education? - Stand for Children Illinois<\/title>\n<meta name=\"description\" content=\"\u201cWasn\u2019t the lottery supposed to fund public education?\u201d The short answer: It does, but it\u2019s not nearly enough money.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/stand.org\/illinois\/our-stories\/confused-about-whether-lottery-money-really-funds-education\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Confused About Whether Lottery Money Really Funds Education?\" \/>\n<meta property=\"og:description\" content=\"\u201cWasn\u2019t the lottery supposed to fund public education?\u201d The short answer: It does, but it\u2019s not nearly enough money.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/stand.org\/illinois\/our-stories\/confused-about-whether-lottery-money-really-funds-education\/\" \/>\n<meta property=\"og:site_name\" content=\"Stand for Children Illinois\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/standillinois\/\" \/>\n<meta property=\"article:published_time\" content=\"2021-08-12T01:11:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-07-09T01:18:12+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/stand.org\/illinois\/wp-content\/uploads\/sites\/4\/2022\/07\/lottery.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"450\" \/>\n\t<meta property=\"og:image:height\" content=\"301\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@illinoisstand\" \/>\n<meta name=\"twitter:site\" content=\"@illinoisstand\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/stand.org\\\/illinois\\\/our-stories\\\/confused-about-whether-lottery-money-really-funds-education\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/stand.org\\\/illinois\\\/our-stories\\\/confused-about-whether-lottery-money-really-funds-education\\\/\"},\"author\":{\"name\":\"\",\"@id\":\"\"},\"headline\":\"Confused About Whether Lottery Money Really Funds Education?\",\"datePublished\":\"2021-08-12T01:11:00+00:00\",\"dateModified\":\"2022-07-09T01:18:12+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/stand.org\\\/illinois\\\/our-stories\\\/confused-about-whether-lottery-money-really-funds-education\\\/\"},\"wordCount\":1146,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/stand.org\\\/illinois\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/stand.org\\\/illinois\\\/our-stories\\\/confused-about-whether-lottery-money-really-funds-education\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/stand.org\\\/illinois\\\/wp-content\\\/uploads\\\/sites\\\/4\\\/2022\\\/07\\\/lottery.jpg\",\"keywords\":[\"Confused About\",\"Equitable Funding\"],\"articleSection\":[\"Confused About\",\"Equitable Funding\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/stand.org\\\/illinois\\\/our-stories\\\/confused-about-whether-lottery-money-really-funds-education\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/stand.org\\\/illinois\\\/our-stories\\\/confused-about-whether-lottery-money-really-funds-education\\\/\",\"url\":\"https:\\\/\\\/stand.org\\\/illinois\\\/our-stories\\\/confused-about-whether-lottery-money-really-funds-education\\\/\",\"name\":\"Confused About Whether Lottery Money Really Funds Education? 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