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How are Oregon Lottery proceeds used?
(And where will they be used in the 2007-2009 biennium?)
The Lottery saw record sales in Fiscal Year 2007, and that resulted in record transfers of
over $604 million. Since we began selling tickets in April 1985, over $5.4 billion has
been transferred for state programs. Economic development and job creation were the
first - and only - use of Lottery proceeds approved by voters in the initiatives that created
the Lottery in 1984. A second use, “financing of education,” was added by voters in
1995, and that is when Lottery funds began supporting K-12 education. Finally, in 1999,
voters approved the use of 15% of Lottery proceeds for parks and watershed
enhancement.
From 1985 through June 2007, almost $1.7 billion has benefited economic development
and job creation, public education has received over $3 billion, and over $451 million has
been allocated to parks and watershed enhancement projects.
In the 2007-2009 biennium, Lottery is expected to transfer about $1.3 billion in proceeds.
Some of those funds are allocated through voter-mandates, namely 18% to the Education
Stability Fund and 15% to Parks and Natural Resources (watershed enhancement). As
part of the budget development process for each biennium, the Oregon Legislature
allocates the remaining funds that are projected to be transferred. Here is the breakdown
of the major allocations (in millions) for the 2007-2009 biennium:
PARKS AND NATURAL RESOURCES
Allocation (in millions)
Parks (7.5% - voter mandate)
$98
Natural Resources/Watershed Enhancement (7.5% - voter mandate) $98
EDUCATION
Education Stability Fund (18% - voter mandate)
State School Fund
Debt Service (Bonds)
Sports Programs in Higher Education
ECONOMIC DEVELOPMENT

$236
$634
$55
$11
Allocation (in millions)

Oregon Economic & Community Development Department
Debt Service (Bonds)
County Fairs
Governor’s Office for Economic Revitalization Team
Counties for Economic Development (Statutory Mandate)

$67
$112
$3
$2
$45

GAMBLING TREATMENT PROGRAM

$13

Similar to recent bienniums, about 2/3 of Lottery proceeds benefit education. Some of
those funds go directly to the State School Fund, and are co-mingled with property taxes
and General Fund monies. Every K-12 public school receives a share of the State School
Fund for its operating budget, which means that every public school in Oregon benefits
from Lottery proceeds. In the 2007-2009 biennium, Lottery proceeds represent about
10% of the overall statewide funding for education budget.
Most Oregonians are aware that the passage of HB 3466 by the 2005 Oregon Legislative
Assembly eliminated our authority to operate sports wagering games, and that’s why we
no longer offer Sports Action and Scoreboard. However, that same bill awarded 1% of
all Lottery transfers to colleges and universities to support sports programs that
previously received proceeds from Sports ActionSM and Score BoardSM.
Some of our recent research shows that Oregonians are particularly interested in
individual projects that are funded by Lottery proceeds – small businesses, farms, fire
training facilities, etc. Those allocations are typically awarded through the Oregon
Economic and Community Development Department (OECDD), a state agency that is
entirely funded with Lottery proceeds. Programs administered through this agency are
directed toward enhancing the economy and creating jobs. Funded projects can include
assistance to specific businesses, industry support (i.e., tourism funding), and community
enhancement efforts such as improvements to small airports and transportation
infrastructure.
Because it’s important to Oregonians to know how our proceeds are used, the Lottery has
always dedicated part of its advertising budget to this effort. For many years, “Oregon
Wins” television, radio, and print advertisements have carried the message that the
Lottery “does good things” for individuals, schools, businesses, and communities all
around the state.
In fiscal year 2008, we will further develop our relationships with the agencies that
receive our proceeds. This will enable us to obtain more specific information about
Lottery-funded projects, and will also provide new opportunities to work in tandem with
these agencies to spread awareness about Lottery-funded projects.