Where The Money Goes

Since the Kansas Lottery's start-up in November 1987, through June 30, 2010, Lottery ticket sales have produced more than $1.356 billion in revenues transferred to the State of Kansas.

The Lottery's Fiscal Year 2010, which ended June 30, 2010, produced $235.4 million in sales and $69 million transferred to the state (figures are unaudited).

The Kansas Lottery Act requires that a minimum of 45 percent of total sales be paid back to the players through the prize fund. In fiscal year 2009 (July 1, 2008 through June 30, 2009), the Kansas Lottery paid out 56 percent in prizes. The State Gaming Revenues Fund received 29 percent of ticket sales; cost of sales was 4 percent (which covers online vendor fees, telecommunications costs and instant ticket printing); 6 percent was paid to Lottery retailers for commissions and bonuses; and 5 percent covered administrative expenses (salaries, advertising, depreciation, professional services and other administrative expenses.)

How are Kansas Lottery Proceeds Distributed?

The State Gaming Revenues Fund (SGRF) is funded through monthly transfers from the Kansas Lottery. Transfers are then made from the Gaming Fund to funds dedicated to economic development initiatives, prison construction and maintenance projects, local juvenile detention facilities, problem gambling assistance, and the State General Fund.

The first $50 million is divided by a formula which first transfers $80,000 to the Problem Gambling and Addictions Grant Fund. Then 85 percent of the balance is transferred to the Economic Development Initiatives Fund, 10 percent to the Correctional Institutions Building Fund, and 5 percent to the Juvenile Detention Facilities Fund. Any receipts in excess of $50 million must be transferred to the State General Fund.

All net profits from Kansas Lottery Veterans Benefit instant scratch tickets are dedicated to veterans' programs and other military programs in Kansas. In fiscal year 2010, the Lottery transferred $1,030,443 (unaudited) to benefit veterans' programs and National Guard scholarships.

Economic Development Initiatives Fund
Fiscal Year 2010 Recommendations

The primary recipients of monies from the Economic Development Initiatives Fund (EDIF) in Fiscal Year 2010 (July 1, 2009 through June 30, 2010) will be the Kansas Department of Commerce, Kansas Technology Enterprise Corporation, Wichita State University Aviation Research and the Kansas Board of Regents.

KANSAS DEPARTMENT OF COMMERCE

Operating Grant. The operating grant from the EDIF supports Commerce's traditional programs, including Attraction Development Grants and the Kansas Industrial Training and Retraining programs.

Older Kansans Employment Program. This program is designed to provide older Kansans, 55 and over, with an employment placement service. The emphasis is on providing jobs in the private sector taking into account non-traditional patterns of employment.

Rural Opportunity Program. This program helps attract investment, business development and job growth in rural areas of the state. It provides additional funding for the Center for Entrepreneurship, Kansas Main Street and Capacity Building Grants.

Senior Community Service Employment Program. This program provides Kansans aged 55 and over with employment placement services with emphasis on employment in the private sector.

Kansas Commission on Disability Concerns. The KCDC provides policy recommendations to the State of Kansas on changes to laws, regulations and programs that affect people with disabilities. The KCDC also provides information and training to the public.

Strong Military Bases Program. This program supports ongoing efforts of the Governor's Military Council to prevent the closure or downsizing of the state's military bases.

Kansas Department of Commerce Fiscal Year 2009 Annual Report

KANSAS TECHNOLOGY ENTERPRISE CORPORATION

The Kansas Technology Enterprise Corporation (KTEC) provides research support, direct company investments and business assistance. KTEC's philosophy targets sustainable economic leadership through technological innovation and business acceleration.

Kansas Technology Enterprise Corporation FY09 Annual Report

BOARD OF REGENTS

Vocational Education Capital Outlay. This program provides grant money to community colleges and technical schools and colleges, primarily to help purchase equipment. The program requires a 50 percent match from the institutions.

Technology Innovation & Internship. This grant program allows instructors from community colleges and technical schools and colleges to intern in private industry for short periods to expand their knowledge. The grant requires a one-to-one match. This program also provides funding for innovative equipment for students.

KANSAS STATE UNIVERSITY

Extension System and Agriculture Research Programs' Cooperative Extension Program. Kansas State uses this funding for a variety of operating expenses.

WICHITA STATE UNIVERSITY

National Institute for Aviation Research Grant. This funding will build on previous state initiatives and help ensure the continuation of a strong aviaton infrastructure in the state. The funding will also assist in securing federal resources.

Aviation Classroom Training Equipment. The State is a partner with Wichita aviation companies, the City of Wichita and Sedgwick County in the development of the national Center for Aviation Training. The Center will enable thousands of Kansans to be trained for high-paying jobs in the aviation industry.

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Source: Some information in this report was taken from the Governor's Budget Report, State of Kansas, Fiscal Year 2010.

If you have questions or need additional information, please call the Director of Communications at the Kansas Lottery at 1-785-296-5708.

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