Where The Money Goes

Since the Kansas Lottery's start-up in November 1987, through May 31, 2009, Lottery ticket sales have produced $1,114,574,667 in revenues transferred to the State of Kansas.

The Lottery's Fiscal Year 2008, which ended June 30, 2008, was the second-best year in Lottery history with $237 million in sales and $70 million transferred to the state. The Lottery's Fiscal Year 2007, which ended June 30, 2007, was the best year in Lottery history with $240 million in sales and $71 million transferred to the state.

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 2008 (July 1, 2007 through June 30, 2008), the Kansas Lottery paid out 56 percent in prizes. The State Gaming Revenues Fund received 29 percent of ticket sales; cost of sales was 5 percent (which covers online vendor fees, telecommunications costs and instant ticket printing); 6 percent was paid to Lottery retailers for commissions and bonuses; and 4 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 2008, the Lottery transferred $880,163 to benefit veterans' programs and National Guard scholarships.

Economic Development Initiatives Fund
Fiscal Year 2009 Recommendations

The primary recipients of monies from the Economic Development Initiatives Fund (EDIF) in Fiscal Year 2009 (July 1, 2008 through June 30, 2009) 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. Included in the operating grant is an additional $62,500 to enhance funding for the Trade Development Division.

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.

Kansas Innovation Consortium. Led by the Governor and including leaders from business, higher education, and relevant state and local offices, the Kansas Innovation Consortium (KIC) will advise the Governor on research priorities and changes needed in education priorities to achieve an innovation-based economy. The KIC will also develop strategies for investing in innovation and enterpreneurship.

Kansas Department of Commerce FY08 Annual Report

KANSAS TECHNOLOGY ENTERPRISE CORPORATION

Operations. 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.

University & Strategic Technology Research. KTEC finances five centers of excellence. These are university-based research centers, each with a different technology specialization. They conduct innovative research and provide technical assistance to Kansas businesses.

Commercialization. KTEC helps finance seven innovation and commercialization corporations that provide business development and financing to start-up technology-based businesses in Kansas. KTEC also provides financial support to recruit successful entrepreneurs to match with emerging companies and to attract existing high technology companies to Kansas.

Mid-America Manufacturing Technology Center. The Center provides business assistance in improving manufacturers' technical capabilities, enabling companies to be more competitive through the adoption of advances in technological processes.

Product Development Financing. This program finances technology product development at both new and existing small Kansas companies. Funding is provided for the applied research stage of technology and initial commercialization, as well as matching monies to help businesses receive federal grants.

Kansas Technology Enterprise Corporation (KTEC) FY08 Annual Report

KANSAS, INC.

Kansas, Inc. does strategic analysis and economic development planning for the state. The agency conducts economic development planning, policy research, and program evaluation to accomplish its mission.

BOARD OF REGENTS

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.

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.

KANSAS STATE UNIVERSITY

The Extension System and Agriculture Research Programs' Cooperative Extension Program has received an annual appropriation of $300,000 from the Economic Development Initiatives Fund for operating expenditures.

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.

STATE WATER PLAN FUND

The State Water Plan Fund receives an annual transfer of $2 million from the Economic Development Initiatives Fund to help finance Water Plan projects.

KANSAS QUALIFIED BIODIESEL FUEL PRODUCER INCENTIVE FUND

This fund, administered by the Department of Revenue, receives $2 million from the EDIF to provide an incentive to producers for each gallon of biodiesel fuel sold.

KANSAS STATE FAIR

Marketing & Premiums. This funding is for enhanced marketing and promotion of the State Fair.

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Source: Some information in this report was taken from the Governor's Budget Report, State of Kansas, Fiscal Year 2009.

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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