ERIC Number: ED367421
Record Type: RIE
Publication Date: 1994-Mar
Reference Count: N/A
An Examination of Supplantation and Redistribution Effects of Lottery Allocations to a Community College System.
Summers, Susan Robinson
One of the more pervasive fiscal trends of the past three decades is the use of state-sponsored lotteries to raise revenue, often earmarked for such publicly supported institutions as public colleges. Evidence exists, however, that lottery revenues, which are unstable in nature, tend to supplant stable general revenue funds. Moreover, lottery ticket purchases can suppress other state tax sources, thus causing a further redistribution of a state's general fund expenditures. To examine the fiscal results over time of earmarking lottery funds to a public community college system, a study of changes in available resources and actual expenditures was conducted in the Florida Community College System (FCCS) since the inception of the state's Education Lotteries in 1987. Study findings, based on a review of revenue and expenditure trends for 23 fiscal years, included the following: (1) the implementation of lottery funding was associated with a decrease in community college expenditures, and with a decline in general revenue allocations to the FCCS; (2) there was no statistically significant evidence that lottery funds supplanted general revenue funds in Florida, since allocations represented a small percentage of total allocations; (3) the FCCS was shown, however, to be increasingly dependent on non-state sources of revenue since the inception of the lottery; and (4) when lottery funds were distributed without categorical restrictions on their use, the overall level of state support was found to be lower than when funds were allocated with categorical restrictions. Contains 84 references. (BCY)
Publication Type: Reports - Research; Speeches/Meeting Papers
Education Level: N/A
Authoring Institution: N/A
Identifiers: Florida; State Lotteries
Note: Paper presented at the Annual Conference of the American Educational Finance Association (Nashville, TN, March 17-19, 1994).