Thursday, June 13, 1996

State senator wants some lottery money returned to communities

By ANNA M. TINSLEY
Harte-Hanks Austin Bureau

AUSTIN - State Sen. Tom Haywood says it's time some of the state's lottery money is returned to communities where the sales are made.

Haywood, R-Wichita Falls, is planning to propose a bill that would send 5 percent of the lottery sales back to where the money was generated.

"It makes sense to me," he said. "There are so many small towns in our district that are starved for cash - some can't even pay their bills. ... It's an outstanding concept to leave some money where its origin is."

A Wichita Falls businessman first planted the idea with Haywood. As the plan began to take root, Haywood said he decided to present the plan to fellow lawmakers during the next legislative session, which begins in January.

"I have not included any of the others in the concept, and I haven't talked to the governor," he said. "I believe there will be a sufficient number of senators who have small towns (in need of money) and that the idea will catch on rather quickly."

Haywood's idea comes a time when playing the Texas lottery has never been easier.

Convenience stores and gas stations reigned as the places to play the game of chance when the lottery began four years ago. Then last year, buying tickets became as easy as plunking four quarters in an instant machine at the grocery store.

Now 6,000 on-line terminals - which print Lotto Texas, Cash 5 and Pick 3 tickets - will be added to stores around the state. There now are 16,000 retailers selling tickets, using 12,417 on-line machines.

"We anticipate that all of this will allow us to reach more people," said Leticia Vasquez, spokeswoman for the Texas Lottery Commission. "Texans are interested in playing the lottery. We have interesting games and significant jackpots. Texans who have wanted to play the lottery ... are taking advantage of it."

So much so they have spent more than $10.7 billion on the game since 1992. And the 6,000 new machines are expected to bring in another $1.2 billion in the next five years, lottery officials say.

The goal of the lottery is to raise money for the state's budget. A portion of each ticket goes to the general revenue fund, where it goes to public and higher education, health and human services, prisons and other state projects.

Of a $1 ticket sale, 5 cents goes to the merchant as commission, 10 cents covers administrative costs, 45 cents goes toward prize money and 40 cents goes to the state's general fund, officials say.

An idea such as Haywood's would have to be mandated by the Legislature, lottery officials said.
"Money now goes back to the community through retail commissions," said Keith Elkins, spokesman for the lottery commission. "That's the only provision for returning money.

"I have heard the idea before," Elkins said. "It would affect us, but it's something we don't have any control over at all. If it is passed, it would become something we would do."