Lawmakers approve bill to change distribution of lottery revenue
Lawmakers approve bill to change distribution of state lottery revenue

Published: February 26, 2008

State lawmakers gave preliminary approval Tuesday to legislation that its author said will make the distribution of lottery revenue more transparent and let taxpayers know exactly how much lottery cash is going to their local school districts.

The measure would take the guesswork out of predicting how much school districts will receive from the statewide education lottery, said its author, Rep. Gary Banz, R-Midwest City. Banz said lottery revenue has consistently been below predictions.

"We've grossly missed those calculations the last two years," Banz said. "It's basic transparency."

The bill would create a special Common Education Lottery Revolving Fund to collect and distribute lottery money every six months to school districts on a per-student basis. Banz said that would let taxpayers know exactly how much lottery cash goes to their local schools.

Currently, lottery funds are run through the state school funding formula along with all other education money. Banz said that makes it difficult to determine how much individual school districts receive from the lottery.

"The way we handle lottery money today is a risky business," Banz said. "We need to allow the lottery to first produce and then distribute the money. We're doing it backwards right now."

Some school districts have had midyear budget cuts because of shortfalls in lottery revenue, said Banz, a retired public school educator at the Putnam City, Ada and Midwest City High Schools. Last year, the lottery shortfall was more than $40 million and this year's numbers are also below projections.

"The schools have not been able to tell parents how much lottery money they receive. If we adopt this reform, each school district will receive a specific amount that will be clear to all," Banz said.

Public schools get about 45 percent of the money from the lottery that's set aside for education. Colleges and universities also receive 45 percent and the balance is divided between school consolidation and teacher retirement funds.

Banz said implementing the plan would require the state to appropriate about $16 million to schools to replace lottery revenue as it accumulates in the new fund.

State Superintendent of Schools Sandy Garrett is seeking a $4.6 million supplemental appropriation to make up for a shortfall in state lottery revenue. Garrett has expressed support for the idea of each school district getting a check directly from the lottery each year in an amount based on the district's average daily attendance.

"Lottery funding should be distributed on a per-pupil basis and on actual collections," Garrett said. "...It is imperative lawmakers restore to common education its historical percentage of general fund revenue and appropriate lottery funding to schools outside of their operational budgets and any area impacting instruction."

Roy Bishop, president of the Oklahoma Education Association, said he supports making lottery distributions more stable and predictable. But Bishop said the new distribution method could lead to lawsuits if local school districts use lottery revenue to supplant existing education funding.

The voter-approved state question that created the statewide lottery prohibits lottery revenue from replacing other education funding.

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