Lawmakers Looking to Abolish Lottery Commission

Senator Jimmy Hickey has filed a bill that would abolish the Arkansas Lottery Commission and put the Arkansas Lottery and its director under the authority of the Arkansas Department of Higher Education and the governor.

The Arkansas Lottery Commission currently operates as an independent state commission with relatively little oversight. Its nine commissioners were appointed by the governor and members of the Arkansas Legislature. Senator Hickey’s proposal would bring the state lottery under the purview of the Arkansas Department of Higher Education, and it would cause the Arkansas Lottery Director to serve at the pleasure of the governor–just as virtually every other state agency director does.

This bill, presumably, is intended to bring more accountability and stability to the Arkansas Lottery. The Arkansas Lottery Commission set an unusual precedent last year when it voted to approve lottery “monitor games” despite objections from Arkansas’ lawmakers. As some legislators said last spring, the Arkansas Legislature created the Lottery Commission, and the Arkansas Legislature can change it. It seems that may be exactly what some lawmakers intend to do.

We will keep an eye on this bill as it develops at the Arkansas Legislature in the coming days. You can read Senator Hickey’s entire proposal here.

AR Lottery Consistently 8% – 9% Below National Average on Education

From 2010 through 2013, the average state lottery paid out approximately 29% of its gross revenue to the state for education funding, scholarships, or other purposes. During that time the Arkansas Lottery only paid out 20.5% – 21.6%–roughly 8% – 9% below the national average.

This is based on research we have assembled this year. We have reviewed annual reports from every state lottery for fiscal years 2010, 2011, 2012, and 2013. The findings are not good for Arkansas.

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College Graduation Rate Remains Flat Despite State Lottery

One of the selling points of the Arkansas Lottery was that it would send more students to college and bring more college graduates into Arkansas’ workforce. However, as the Lottery celebrates its fifth anniversary, college graduation statistics seem to show the Arkansas Lottery isn’t living up to its promises.

According to data from the Chronicle of Higher Education, from 2002 to 2007 Arkansas’ graduation rate rose roughly 5%. In 2002, 15% of college students in Arkansas graduated in 4 years, and 35% graduated in 6 years. By 2007, 20.7% of students graduated in 4 years, and 40% graduated in 6 years.

Since 2007, however, the graduation rates have remained fairly flat. By 2010 only 19.7% of Arkansas college students graduated in 4 years, and 38.7% graduated in 6.

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