October 25, 2004
October 25, 2004
ROCKFORD - Governor Jennifer M. Granholm and Michigan Bureau of State Lottery Commissioner Gary Peters joined Grand Rapids area educators today to discuss the impact Proposal 1 could have on education funding for Michigan schools. The Governor and Commissioner Peters shared their concerns during a forum held at Rockford High School.
"The Michigan Lottery plays a critical role in supporting our education system and our children," said Granholm. "Every year it contributes upwards of $600 million to our schools. If Proposal 1 passes, however, the Lottery's future could be threatened."
Peters explained that the ballot language could prevent the Lottery from creating new games, which could impede the Lottery's ability to maintain and grow its business.
"Proposal 1 could prevent us from continuing to create successful, competitive, and popular games like Club Keno," said Peters. "Club Keno brought in $204 million in totals sales in its first year, resulting in $57 million for education. That is the most successful launch for a Lottery game ever and it enabled us to contribute a record amount of money to the state School Aid Fund."
Last week, the Michigan Lottery announced a record-setting $644.5 million contribution to the School Aid Fund. The Lottery's 2004 contribution is expected to fund 5.2 percent of the $12.4 billion total School Aid budget. The record contribution from the Lottery this year is credited in large part to the highly successful launch of Club Keno into Michigan bars and restaurants in late October, 2003. One hundred percent of lottery net profits go to Michigan schools. In its 32-year history, and including the $644.5 million for FY 2004, the Lottery has contributed $12.1 billion to education in Michigan.
"In these tough economic times, we rely even more on the revenue the Lottery provides our schools," Granholm said. "The Lottery helps us move Michigan forward and helps us grow the School Aid Fund, so that we can better educate our children and get them ready for new, high-tech jobs."
The Michigan Lottery was established in 1972 through a constitutional amendment. Net proceeds went into the state's general fund budget, and in 1981, language earmarking the money to go specifically to the state School Aid Fund was adopted by the Legislature and signed into law by Gov. William Milliken.
For further information about the Michigan Lottery, go to www.michigan.gov/lottery
