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LITTLE ROCK, Ark. (AP) — Arkansas lottery officials say the amount of money the lottery generated for college scholarships increased in August over figures from a year earlier, despite a decline in revenue.
The Arkansas Democrat-Gazette reported (http://bit.ly/1Lqlx9D ) Saturday that revenue for August was $31.2 million, down about $306,000 from August 2014. Money for scholarships was $5.4 million, an increase of about $194,000 from the previous year.
"There isn't a single factor that can be credited for the increase in net proceeds other than a general decrease in expenses across operations," said Jake Bleed, a spokesman for the state Department of Finance and Administration.
Oversight of the lottery was given to DFA in February when the commission that ran the lottery was dissolved by the Legislature.
The lottery's scratch-off ticket revenue slipped by about $45,000 over a year ago to $26 million, while draw game ticket revenue declined by about $250,000 to $5.1 million, the lottery reported.
Also, Bleed said, revenue in August 2014 was about $450,000 more than normal because of a $180 million Mega Millions jackpot that led to increased ticket sales.
State voters approved the lottery in 2008 as a way to raise money for college scholarships and the first tickets were sold in 2009.
The state Department of Higher Education has projected the program will pay $97.6 million in scholarships in fiscal 2016, down from a high of $133.1 million in 2013 and slightly below the $99.2 million generated in 2015.
During the first two months of the fiscal year, lottery revenue is $62.9 million compared with $62.4 million during the same period in fiscal 2015.
The lottery has helped finance more than 30,000 Arkansas Academic Challenge Scholarships during each of the past five fiscal years, but the Legislature has cut the size of the scholarships for students three times in recent years as a result of the lottery's proceeds falling short of projections.
A bill signed into law earlier this year will reduce the amount of scholarships for first-year students and change the eligibility requirements, starting in the 2016-17 school year.
The scholarship will be reduced from $2,000 to $1,000 for freshmen at two- and four-year colleges, while increasing from $3,000 to $4,000 for sophomores at four-year colleges and from $2,000 to $3,000 for sophomores at two-year colleges.
Scholarship recipients will receive $4,000 as juniors and $5,000 as seniors at four-year universities.
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Information from: Arkansas Democrat-Gazette, http://www.arkansasonline.com
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