Division of the Lottery

 

The Enacted Budget makes no changes to the Executive Budget’s State Operations appropriations (analysis as of March 31, 2009).

The 30 day amendments makes technical corrections to Part T permitting the Division to invest in the same manner as the pension fund (analysis as of January 22, 2009):

The Executive Budget recommends (analysis as of December 23, 2008):

A SFY 2009-10 workforce of 358. This is a decrease of 3 FTEs from the from the adjusted FTE level for FY 2009-10 through attrition. The following chart identifies adjustments in the current fiscal year’s FTEs along with the recommended differences in SFY 2009-10 FTEs by program (if the FTE’s are the same the program is not listed):

Program

FY 2008-09 Adjustment

FY 2009-10 Difference

Administration of Lottery Program

 　

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  • The total appropriation for Personal Service is $23.3 million, an increase of 13.1%. The increase from the adjusted appropriation is considerably less, $1.2 million. This reflects adjustments due to the Special Pay Bill containing negotiated union raises and agency-wide reductions made during the fiscal year.
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  • An All Funds appropriation of $117.5 million, a decrease of $2.7 million, or (-2.3%) from the enacted SFY 2008-09 All Funds appropriation. However, the Agency Presentation indicates that the total All Funds appropriation for the Division shows a net decrease of $5 million from the adjusted SFY 2008-09 agency appropriation. This discrepancy may be due to the Special Pay Bill, which contained negotiated union raises and also due to the agency-wide reductions made during the fiscal year.
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  • Proposes significant changes to personal service appropriations in the following programs:

    • o Administration Program – increase of $242,00 million.

    o VLT Program – VLT Administration Acct – decrease of $5.2 million.
  • Proposes significant changes to contractual services appropriations in the following programs:

    • o Administration Program – State Lottery Acct – decrease of $2.5 million or -3.4%.

    o VTL Program – VTL Administration Acct – decrease of $4.4 million or -38.3%.
  • The Division employed an estimated 15 employees under consultant contracts in SFY 2008-09 at a cost of $932,568 or an average cost of $62,171 per consultant contract employee.  It is anticipated that these figures will be relatively unchanged for SFY 2009-10. It is estimated that $1.2 million will be allocated for consultant contracts in SFY 2009-10 for 15 employees, at an average cost of $79,529 per consultant contract employee.
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  • Eliminate Quick Draw Restrictions Part (II). Removes certain restrictions on the locations where Quick Draw can be played and on the hours of operation. Enactment of this bill is necessary to implement the 2009-10 Executive Budget because the elimination of game restrictions will generate an additional $40 million in 2009-10 and $59 million thereafter to support education.
  • Allow for Additional Multi-Jurisdictional Lottery Games (Part JJ). Removes the restriction that currently allows the Division of the Lottery to join only one multi-jurisdictional game. This action would allow the Lottery to be part of new multi-jurisdictional gaming associations.
  • Authorize VLTs at Belmont Park (Part GG). Authorizes the operation of VLTs at Belmont Park, which would generate a franchise payment of at least $370 million in 2010-11.

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    Division of the Lottery  
    Program Details-State Operations 
      Enacted Proposed Enacted Change in Percent
    Program 2008-09 Budget 2009-10 Budget 2009-10 Budget Appropriation Change
    All Funds $120,314,100 $117,552,101 $117,552,101 ($2,761,999) -2.3%
    Special Revenue - Other $120,314,100 $117,552,101 $117,552,101 ($2,761,999) -2.3%
               
    Personal Services $20,620,300 $23,313,076 $23,313,076 $2,692,776 13.1%
    Contractual Services $85,919,200 $78,937,600 $78,937,600 ($6,981,600) -8.1%
               
    Administration $103,992,800 $106,142,013 $106,142,013 $2,149,213 2.1%
    Special Revenue-Other (SRO) $103,992,800 $106,142,013 $106,142,013 $2,149,213 2.1%
               
    State Lottery Acct - (SRO) $103,992,800 $106,142,013 $106,142,013 $2,149,213 2.1%
    Personal Service $17,661,800 $20,799,697 $20,799,697 $3,137,897 17.8%
    Regular $16,752,700 $19,890,597 $19,890,597 $3,137,897 18.7%
    Temporary Service $417,600 $417,600 $417,600 $0 0.0%
    Holiday/overtime compensation $491,500 $491,500 $491,500 $0 0.0%
    Nonpersonal Service $86,331,000 $85,342,316 $85,342,316 ($988,684) -1.1%
    Supplies and materials $702,300 $702,300 $702,300 $0 0.0%
    Travel $578,200 $578,200 $578,200 $0 0.0%
    Contractual Services $74,316,500 $71,784,400 $71,784,400 ($2,532,100) -3.4%
    Equipment $1,934,100 $1,934,100 $1,934,100 $0 0.0%
    Fringe benefits $8,044,900 $9,588,316 $9,588,316 $1,543,416 19.2%
    Indirect costs $755,000 $755,000 $755,000 $0 0.0%
               
    VLT Program $16,321,300 $11,410,088 $11,410,088 ($4,911,212) -30.1%
    Special Revenue-Other (SRO) $16,321,300 $11,410,088 $11,410,088 ($4,911,212) -30.1%
               
    VLT Administration Acct - (SRO) $16,321,300 $11,410,088 $11,410,088 ($4,911,212) -30.1%
    Personal Service $2,958,500 $2,513,379 $2,513,379 ($445,121) -15.0%
    Regular $2,907,600 $2,462,479 $2,462,479 ($445,121) -15.3%
    Temporary Service $38,400 $38,400 $38,400 $0 0.0%
    Holiday/overtime compensation $12,500 $12,500 $12,500 $0 0.0%
    Nonpersonal Service $13,362,800 $8,896,709 $8,896,709 ($4,466,091) -33.4%
    Supplies and materials $9,800 $9,800 $9,800 $0 0.0%
    Travel $58,800 $58,800 $58,800 $0 0.0%
    Contractual Services $11,602,700 $7,153,200 $7,153,200 ($4,449,500) -38.3%
    Equipment $230,000 $230,000 $230,000 $0 0.0%
    Fringe benefits $1,347,600 $1,331,009 $1,331,009 ($16,591) -1.2%
    Indirect costs $113,900 $113,900 $113,900 $0 0.0%