Contact: Scott Holste, (573) 751-0290
Channing Ansley, (573) 751-0290
FOR IMMEDIATE RELEASE
Sept. 18, 2014
Review of Missouri Lottery operations identifies areas for improvement, Gov. Nixon says
Gov. Nixon makes four appointments to State Lottery Commission
JEFFERSON CITY – Gov. Jay Nixon said today that a review of the Missouri Lottery’s operations has identified several areas for improvement and announced the appointment of four new members to the State Lottery Commission. In July, citing a decrease in the percent of lottery revenues going to education while lottery ticket sales continued to grow, the Governor ordered the Office of Administration to conduct a review of the Missouri Lottery’s operations.
“Two decades ago, Missouri voters spoke loud and clear that the proceeds from the Missouri Lottery should benefit our public schools and it’s clear that the lottery has some work to do if it’s going to keep delivering on that promise,” Gov. Nixon said. “This review has identified several areas where the lottery needs to do better, and I look forward to seeing the lottery implement these solid recommendations to improve its operations and maximize its benefit to public education.”
With a focus on the previous 10 years, the Office of Administration Budget & Planning division reviewed data specific to the Missouri Lottery, data from all 44 state lotteries, and research regarding lottery operation and performance. The review includes recommendations intended to increase the amount of funding available for transfer to public education. Recommendations include:
· Aligning incentives for contractors with the goal of increased funds for education.
· Integration of contracting procedures to align with the Office of Administration’s established regulations for vendor contracts.
· Carefully scrutinizing administrative expenses to determine how consolidated services could be utilized to reduce those costs.
· Conducting an analysis to more comprehensively review the importance of prize payout percentages relative to other factors in maximizing funds for education.
· Implementing a more systematic review of projected versus actual return-on-investment on advertising and promotional expenses and suspending activities without a positive return.
The Governor also named four new members to the State Lottery Commission.
Dr. Terry R. Adams (D), of Lake St. Louis, is a retired school district superintendent who served as the superintendent of the Rockwood School District (2013-2014) in Eureka, the Wentzville R-IV School District (2006-2013), Rolla Public School District #31 (2002-2006), Central R-III School District in Park Hills (1997-2002), and the Arcadia Valley R-II School District in Ironton (1987-1997). He was named Missouri superintendent of the year in 2012. The Governor has appointed him for a term ending Sept. 7, 2015.
Dr. Phyllis A. Chase (D), of Kansas City, is director of the Charter School Center at the University of Missouri-Kansas City and has held positions in public education since 1971. She was superintendent of Columbia Public Schools from 2003 to 2008, chief of staff of Springfield Public Schools from 2000 to 2003, and acting superintendent of the Kansas City, Missouri School District from 1998 to 2000. The Governor has appointed her for a term ending Sept. 7, 2016.
Paul Kincaid (I), of Springfield, will retire in October after 28 years with Missouri State University, most recently as chief of staff and assistant to the president for university relations. He has been active in the Council for Advancement and Support of Education and the American Association of State Colleges and Universities. Kincaid is a graduate of Phillips University. The Governor has appointed him for a term ending Sept. 7, 2016.
John Twitty (R), of Springfield, spent almost three decades in management of municipal utilities in Rolla and Springfield, including service as general manager and chief executive officer of City Utilities of Springfield from 2002 to 2011. He serves on the Board of Trustees of Drury University, and on the boards of directors for Jordan Valley Community Health Center, Mercy Health Springfield Communities and Empire Bank. He obtained his undergraduate degree from the University of Missouri and his post-graduate degree from the University of Missouri-Rolla. The Governor has appointed Twitty for a term ending Sept. 7, 2016.
The appointments will be subject to confirmation by the Missouri Senate.
“The Office of Administration’s comprehensive review provides several specific recommendations aimed at minimizing costs and maximizing benefits for public education, and this review should give clear guidance to the Commission,” Gov. Nixon said. “The four Missourians I am appointing to the Commission today have extensive experience in business and education, and are uniquely qualified to provide strong leadership to ensure the state lottery provides the greatest possible benefit to our public schools.”
In 1992, Missouri voters approved a constitutional amendment directing Missouri Lottery net proceeds solely for public education. In Fiscal Year 2014, the percent of lottery revenues going to education dropped to 23 percent, its lowest point in at least a decade, while lottery ticket sales continued to increase.
The full report is available here.
###
Follow the Governor on Twitter @GovJayNixon
