Where The Money Goes

Since the Kansas Lottery's start-up in 1987, through December 31, 2007, Lottery ticket sales have produced $1,016,335,231 in revenues transferred to the State of Kansas.

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 2007 (July 1, 2006 through June 30, 2007), 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 transferred to retailer earnings; 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 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' and other military programs in Kansas. In fiscal year 2007, the Lottery transferred $913,138 to benefit veterans' programs and National Guard scholarships.

ECONOMIC DEVELOPMENT INITIATIVES FUND
FISCAL YEAR 2008 RECOMMENDATIONS

The primary recipients of monies from the Economic Development Initiatives Fund (EDIF) in Fiscal Year 2008 (July 1, 2007 through June 30, 2008) will be the Kansas Department of Commerce, Kansas Technology Enterprise Corporation and Wichita State University. The Department of Commerce also receives a transfer of $3 million in FY08 to its Kansas Economic Opportunity Initiatives Fund (KEOIF) program.

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.

Rural Opportunity Program. The creation of this program in FY08 will help 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.

On TRACK Program. The creation of this program in FY08 will focus on keeping the Kansas economy On TRACK with Training, Recruitment and Careers in Kansas. This program will develop new recruitment and career training strategies, including sign-on bonuses for new employees in specific industries, child care initiatives and a state image campaign focused on workforce development.

Kansas Department of Commerce FY07 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.

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

Commercialization. KTEC helps finance eight 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 tech companies to Kansas.

Mid-America Manufacturing Technology Center. The Center provides business assistance in improving manufacturers' technical capabilities, enabling them to be more competitive.

Product Development. 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) FY07 Annual Report

KANSAS, INC.

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

RACING AND GAMING COMMISSION

The Racing Operations Program of the Racing and Gaming Commission regulates horse and dog racing activities across the state, including the conduct of races, pari-mutuel wagering and the collecton of pari-mutuel taxes, admission taxes, and licensing fees.

WICHITA STATE UNIVERSITY

Funding for aviation research at Wichita State University's National Institute for Aviation Research will build on previous state initiatives and help ensure a continuation of the strong aviation research infrastructure. The funding provided by the state is also expected to create leverage to secure federal resources.

STATE WATER PLAN FUND

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

KANSAS QUALIFIED BIODIESEL FUEL PRODUCER INCENTIVE FUND

This fund, administered by the Department of Revenue, receives an annual transfer of $3.5 million from the EDIF to provide an incentive to producers in the amount of $.30 for each gallon of biodiesel fuel sold.

KANSAS STATE FAIR

Economic Impact Study. To determine the financial benefits to the State of Kansas and to obtain information about Fair attendees, the Kansas State Fair will conduct an economic impact and demographic study.

Alternative Energy Systems. To help offset increases in energy costs, the Kansas State Fair seeks to utilize alternative energy sources for the fairgrounds, including installing wind turbines and a solar thermal heat system for the Administration Building.

Ticket Marketing & Premiums. This funding is for enhanced ticket marketing through the agency's website and radio, television and print advertising. The Fair gives prizes and awards, called "premiums," to exhibitors and participants. Increased premiums are expected to have a positive affect on the number of entries in these competitive events.

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Source: Some information in this report was taken from the Governor's Budget Report, State of Kansas, Fiscal Year 2008.

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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