Can Lottery Profits Help Flood Victims?

With the heartbreaking devastation that our state has faced this year, we're receiving a lot of questions from folks who wonder if Iowa Lottery profits could be used to help flood victims. It would require a change in Iowa law in order for that to happen, so I want to take just a little time to explain how Iowa Lottery profits currently are used to help our great state.

When the Iowa Lottery started in 1985, its profits were dedicated to the Iowa Plan, a long-term economic development program. The Iowa Plan was divided into four basic areas: a Jobs Now program designed to put people to work; government construction programs; community and economic betterment; and educational and agricultural research. Lottery profits went to the Iowa Plan through fiscal year 1990.

During the 1991 fiscal year, Iowa Lottery profits were dedicated to the CLEAN Fund, which stood for Committing the Lottery to Environment, Agriculture and Natural Resources. The program dedicated money to environmental and cultural causes.

Then 1992, Iowa faced some tough economic times and lottery profits were dedicated to the state general fund. Within the state budget, the general fund provides money to a variety of vital projects in Iowa, including public education, natural resources, health and family services and public safety. The governor and Iowa Legislature allocate money from the general fund based on where they believe those funds are needed most.

Some Iowa Lottery profits continue to go into the general fund today, but lottery proceeds also have three other main uses in our state: help for veterans, support for the Iowa Gambling Treatment program; and financing of the Vision Iowa program, which is being used to create tourism destinations in our state and repair schools.

Starting in July, a portion of lottery profits are being used to hlep our state's veterans. The Iowa Lottery will release two instant-scratch games and two pull-tab games each year, with all proceeds from those games dedicated to the Iowa Veterans Trust Fund. The lottery estimates that the games will raise between $2 million and $3 million each year for the Trust Fund.

Each year, a portion of Iowa Lottery profits are dedicated to the Iowa Gambling Treatment Program that provides counseling, treatment and outreach programs as well as the 1-800-BETSOFF helpline. Through the years, the lottery has provided more than $14.5 million to the Gambling Treatment Program.

Iowa Lottery profits also provide support for the Vision Iowa program, which was implemented in 2000 to create tourism destination in the state, assist with community attractions, and build and repair schools. Direct funding for Vision Iowa comes from gaming revenues. However, as the program was initiated, investors indicated there was a need to strengthen he Vision Iowa bonds by dedicating $20 million annually in lottery revenues as a backup. State law provides that $15 million in lottery revenues are dedicated each year to programs for community attractions in Iowa and another $5 million to Vision Programs to build and repair schools if gambling revenues don't reach that amount. Lottery funding will continue to be linked to Vision Iowa over the 20-year paybck period of the program's bonds.

Iowa law specifies those four uses for Lottery profits in our state today, and it would require a change in the law for lottery proceeds to be used for any other purpose, including flood relief.

Comments

[John Boggie]

In each of the power ball, hot lotto, and 100,000 the second prize needs to be larger. I had 4 numbers in the 100,000 and only win $100. The Hot Lotto also should be increase on 2nd prize. If the power ball is 100 million maybe the 2nd prize should be 1 million?
Please consider in new plans. Thanks