Building a Better Future for Washington
Since its inception in 1982, Washington’s Lottery has generated over $2.3 billion for important state programs. Currently, Lottery revenues help support education construction projects for K-12 and higher education, stadium debt reduction, economic development, problem gambling prevention and treatment, and the state’s General Fund.
"I thought the Lottery would pay for schools"
Many people believe the Lottery was originally created to fund education. This perception is understandable given the history of "Lottery Legislation" introduced prior to the Lottery’s creation. Because Washington State and much of the nation was in a recession at that time, the Legislature was reluctant to pass any bill that would dedicate Lottery funds solely to education or another program area. Therefore, the Lottery was created to provide revenues to the state General Fund, which supports schools, human service programs, natural resources and many other government programs. Legislation introduced between 1973 and 1982 that proposed dedicating Lottery revenues to a variety of funds such as the common schools, state institutions, transportation, special levy relief and city and county governments never passed. However, when voters approved Initiative 728 in 2000 the largest portion of Lottery dollars were formally dedicated to education programs. Now, the largest portion of Lottery dollars support the Education Construction Account which provides a small but important portion of the funding to build, remodel, and renovate schools, colleges, and universities across Washington State.
Lottery dollars in perspective
Last year, Washington’s Lottery generated $102 million to education construction projects in our state. But the state’s education needs are immense, and the Lottery’s portion comprises less than 2% of the total education funding budget. Does that mean Lottery revenues are insignificant
“No, it means that every single Lottery dollar counts,” says Lottery Director Christopher Liu. “Education funding in our state is extremely important and the Lottery is just one of a number of revenue sources, so every dollar is significant.”
How Lottery dollars flow to schools, colleges and universities
Lottery revenues for education go to the Education Construction Account which helps to build, remodel and renovate K-12 and higher education facilities.
Lottery dollars for higher education
Lottery revenues for higher education are routinely used for maintenance projects, but on some occasions are used for new construction. Higher education dollars from the Lottery are allocated from the Education Construction Account to public colleges and universities based upon the state budget approved by legislators.
Lottery dollars for K-12 schools
K-12 school construction is funded through a number of revenues sources, including Common School Trust Lands, Education Construction Account Lottery, and general obligation bonds. General obligation bonds are responsible for the biggest portion of the revenues.
State matching grant funds, part of which come from Lottery dollars, are allocated to individual school districts. Only after a district passes its bond or capital levy is it eligible to apply for a matching grant from the state. The Office of Superintendent of Public Instruction OSPI approves projects and administers the state matching funds to K-12 school districts based upon a mix of factors such as the need for space, building conditions, project timelines, etc., as well as local and state funds available.
How state funds work with community dollars for K-12 schools
State matching funds, which include Lottery dollars, help supplement local bond and capital levy dollars to build, remodel, and renovate K-12 schools. For example, if a school district needs to build new school buildings and remodel others, voters are asked to approve a construction bond. The bond, once approved by voters, is supplemented by state matching grant dollars to help the district fund what students need and the community can afford.
Bonds and Levies: What's the difference
A levy is a request by a school district of voters to raise or continue property taxes for a limited number of years for operations costs or capital improvements such as computers or other equipment.
A bond is a request by a district of voters to sell bonds to raise cash for capital expenses, usually substantial projects. In this instance, a district would sell bonds to raise cash and use property taxes to pay principal and interest for the purchase of the bonds.
Learning more about how schools are funded
The financing of Washington’s needs for K-12 and higher education is complicated, but important for citizens to know. For more information, please refer to the following:
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