Division of the Lottery

Division of the Lottery

The Executive Budget recommends (analysis as of January 28, 2008):

A FY 2008-09 workforce of 361. This is no change from the adjusted FTE level for FY 2007-08. 11 FTEs were added to the Administration of VLT program during SFY2007-08 that was not provided for in the SFY 2007-08 enacted budget. It is unclear what these positions are for and how they are funded. The SFY 2008-09 personal service appropriations in the VLT program are not increased and cannot support 11 new positions. This issue should be clarified at statewide labor management

Program	FY 2007-08 Adjustment	FY 2008-09 Difference
Administration of VLT Program	+11	0

An All Funds appropriation of $120.3 million, a decrease of $3 million, or (-2.5%) from the enacted SFY 2007-08 All Funds appropriation. Most of the decrease is in the appropriation for the Administration – State Lottery Account – Contractual Services (-$3 million).

The total appropriation for Personal Service is $20.6 million, a decrease of 1.8%. Most of this decrease is in the personal service appropriation for the Administration – State Lottery Account (-$300,000).

The estimated number of FTE employees employed under consulting contracts in SFY 2008-09 is unchanged at 15. The estimated SFY 2008-09 disbursements for consulting services contracts is $843,143, a modest increase over SFY 2007-08. The average annual cost per consulting employee also increased slightly to $56,210.

Proposes Article 7 legislation to

Amend the State Finance Law and the Tax Law to provide a source of predictable multi-year funding for grades K-12 and for institutions of higher education through monetization of the State Lottery. Legislation authorizes the Director of the Lottery, pursuant to a Chapter of the laws of 2008, to enter into a transaction under which the State will receive advance payment in return for receipt of future Lottery revenues.

Make permanent the Division’s authority to operate the Quick Draw game.

Authorize the operation of Video Lottery Terminals at Belmont Park Racetrack which would raise $250 million in revenue.

Division of the Lottery
Program Details-State Operations
	Enacted	Proposed	Change in	Percent
Program	2007-08 Budget	2008-09 Budget	Appropriation	Change
All Funds	$123,357,300	$120,314,100	($3,043,200)	-2.5%
Special Revenue - Other	$123,357,300	$120,314,100	($3,043,200)	-2.5%

Personal Services	$20,988,200	$20,620,300	($367,900)	-1.8%
Contractual Services	$88,859,900	$85,919,200	($2,940,700)	-3.3%

Administration	$107,012,300	$103,992,800	($3,019,500)	-2.8%
Special Revenue-Other (SRO)	$107,012,300	$103,992,800	($3,019,500)	-2.8%

State Lottery Acct - (SRO)	$107,012,300	$103,992,800	($3,019,500)	-2.8%
Personal Service	$17,966,200	$17,661,800	($304,400)	-1.7%
Regular	$17,160,200	$16,752,700	($407,500)	-2.4%
Temporary Service	$255,000	$417,600	$162,600	63.8%
Holiday/overtime compensation	$551,000	$491,500	($59,500)	-10.8%
Nonpersonal Service	$89,046,100	$86,331,000	($2,715,100)	-3.0%
Supplies and materials	$378,800	$702,300	$323,500	85.4%
Travel	$501,500	$578,200	$76,700	15.3%
Contractual Services	$77,365,900	$74,316,500	($3,049,400)	-3.9%
Equipment	$1,934,100	$1,934,100	$0	0.0%
Fringe benefits	$8,267,200	$8,044,900	($222,300)	-2.7%
Indirect costs	$598,600	$755,000	$156,400	26.1%

VLT Program	$16,345,000	$16,321,300	($23,700)	-0.1%
Special Revenue-Other (SRO)	$16,345,000	$16,321,300	($23,700)	-0.1%

VLT Administration Acct - (SRO)	$16,345,000	$16,321,300	($23,700)	-0.1%
Personal Service	$3,022,000	$2,958,500	($63,500)	-2.1%
Regular	$3,022,000	$2,907,600	($114,400)	-3.8%
Temporary Service	$0	$38,400		-100.0%
Holiday/overtime compensation	$0	$12,500		-100.0%
Nonpersonal Service	$13,323,000	$13,362,800	$39,800	0.3%
Supplies and materials	$43,000	$9,800	($33,200)	-77.2%
Travel	$0	$58,800		-100.0%
Contractual Services	$11,494,000	$11,602,700	$108,700	0.9%
Equipment	$263,000	$230,000	($33,000)	-12.5%
Fringe benefits	$1,419,000	$1,347,600	($71,400)	-5.0%
Indirect costs	$104,000	$113,900	$9,900	9.5%