People know how to play the lottery, but often don’t know where the money goes. Here’s a look at how many dollars spent on lottery tickets in Texas go toward education.
The Texas Lottery has recorded financial growth since 1992, with more than $39 billion in revenue for education, veteran’s services and other state programs, according to the Texas Lottery.
A portion of the lottery’s revenue is dedicated to the Foundation School Fund, which is vital for financing public education, according to the Texas Education Agency.
The lottery was established with the intent of generating additional revenue for public services, particularly education and programs for veterans.
For fiscal year 2023, which spanned Oct. 1, 2022 to Sept. 3, 2023, the Foundation had total revenue of $24.2 billion, from which $2.131 billion came from the Texas Lottery.
Historical impact
The lottery allocates just over $2 billion annually to Texas schools, which covers about five days of a typical 180-day school year. This is a decrease from over 10 days’ worth of funding more than 25 years ago, when the state lottery began operating at full capacity.
Since 1992, the lottery has consistently contributed to the state’s revenue , exceeding the inflation rate.
When the lottery was established, some politicians — though not all — promoted it as a significant benefit for education, even though its primary purpose was to serve as a small solution to a budget crisis.
Nevertheless, the myth that the lottery would cover a substantial portion of the state’s education expenses continued to endure.
How is the money distributed?
The funds allocated to the Foundation School Fund play a crucial role in enhancing educational outcomes and resources, according to the TEA.
The Texas Lottery’s sustained revenue growth and strategic allocation of funds not only highlight its financial health, but also the positive impact it has on the education sector.
These investments are directed toward a range of services, from improving school infrastructure to supporting student programs, teacher salaries, technology enhancements and extracurricular activities.
Challenges faced
According to the 2022-23 Texas Almanac, local property taxes and overall state revenue are the primary funding sources for public schools in Texas.
In the decade from 2008 to 2018, state revenue for schools fell by 12.6%, even as the student population grew by 13.7% during the same period, according to the almanac.
In 2019, the Legislature passed HB 3, which brought significant reforms to school funding.
The legislation boosts funding on a per-student basis, provides full day prekindergarten for qualified 4-year-olds, and allocates funds for teacher salary increases.
There hasn’t been any report or any update to the funding per-student basis since the legislation was passed.
Future Projections
According to Texas AFT — a statewide union for K-12, community college educators, support staff and retirees — some school districts hold a voter-approval tax rate election if they want to increase the property tax rate above a certain level set by the state.
A voter-approval tax rate election asks voters to approve a revised tax rate aimed at boosting funding for student programs, as well as for teacher and staff salaries.