SACRAMENTO – Today the Lottery Commission approved the budget for the 2007-08 fiscal year and endorsed a business plan designed to create sustained sales growth over the long term. The budget adopted by the Commission for 2007-08 projects sales of $3.35 billion with education to receive $1.18 billion in supplemental funding (These items can be found at: http://www.calottery.com/agenda).
“The time for research and review is over, it is now time to make this plan a reality,” said Joan Borucki, Lottery Director. “I believe this Business Plan represents the best strategy for long term growth and increasing contributions to education.”
The Business Plan is the result of a year long undertaking which included intensive evaluation of historical data, consultation with industry experts, and an assessment of the marketplace and industry trends. At their May 2007 meeting, the Lottery Commission approved the Business Plan’s strategic direction in concept. This Business Plan reflects that strategic direction and articulates the key initiatives that will be implemented over the course of the next three years.
Lottery officials are confident the four key strategies presented in the Plan represent the best opportunity for growth. Initially, Lottery officials will focus their attention in long term planning instead of the year to year planning previously done. Another goal is to strengthen the brand image of the Lottery to allow successful introduction of new products and attract a broader customer base. The third strategy is to shift the focus from large jackpots to entertaining games that produce more winners. The last strategy requires investing resources to modernize operations, creating efficiencies, and providing flexible business systems that can quickly adjust to changing market trends. The return on the investment in these strategies will be recognized throughout the course of the next three years.
The California State Lottery contributes at least 34 cents of every dollar that players spend on Lottery products to public education and returns more than 50 percent of sales to players in the form of prizes. Since its inception in 1985, the Lottery has contributed more than $19 billion to California schools out of total sales of more than $52 billion. Retailers win too, earning $3.3 billion in compensation since 1985.