BUSINESS PLAN
Keeping our promises by renewing our business.
Our Business Plan represents the efforts of a team of leaders within the Lottery working to produce a plan with the objective of increased sales to achieve unprecedented growth over the next three years and beyond. We are reinventing our business practices and looking to industry best practices to generate more money for our schools. We've embarked on a top-to-bottom review of our games, operations and outreach activities to renew our promise to public education.
Recently, the California Legislature passed landmark legislation to give the Lottery Commission the tools we need to maximize education funding. Assembly Bill 142 passed with overwhelming, bi-partisan support because our state's leaders recognized that a stagnant lottery meant decreased profits for public education. This legislation gives the Lottery Commission the ability to return more money to our state's schools by increasing lottery sales.
In April 2010, the Legislature passed Assembly Bill 142, which changed the Lottery’s funding formula to follow best practices. Those practices have helped lotteries throughout the nation increase sales and earn more money for their beneficiary.
AB 142 limits administrative expenses to 13 percent of sales, while requiring that 87 percent of sales go back to the public in the form of prizes and contributions to education. The law gives the Lottery the flexibility to pay out a higher percentage of its revenues in prizes than it has in the past, but only if it does so in a way that increases the total amount of money that goes to public schools and colleges.
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