Illinois math

http://www.nwherald.com/2011/11/25/state-reaping-less-from-lottery-in-new-fiscal-year/alruvan/

       I don't normally begin with a link, but if you want to read the whole thing here you go.  Headlines are all something like: State Lottery revenues down for fiscal year.  Something like that.  Here are some excerpts.  I am using the one from my newspaper, but it was an Associated Press article, so it was everywhere.

       "The state's share of Illinois Lottery revenue dropped in three of the first four months of the fiscal year compared to the same period last year"

We are then assured this is only temporary.

"The state last year chose Northstar Lottery Group as the Illinois Lottery's first-ever private manager, promising that sales – and therefore the state's share of revenue – would increase."

A little history is presented. The comedic potential builds. Then the punchline:

"Northstar CEO Connie Laverty O'Connor said total sales are up 12 percent and instant ticket sales are up 23 percent, compared to last year"

This is odd since the State's revenues are down... Some clarification please.

"O'Connor said the company still is paying expenses incurred last spring for advertising and equipment as it prepared to take over."

So a state lottery, which has existed for decades, needed advertising and equipment? Perhaps I don't fully understand. Perhaps there is full disclosure, and this is the truth.
William of Occam was a 14th century philosopher who is credited with a bit of logic we all know and love, even if we don't know the name. Occam's razor states that the simplest solution is probably correct. What would the simplest solution be here in the land of Honest Abe Lincoln? Let's read further...

"Reports show the state's share of lottery revenue dropped by $2 million in July, to $41 million; by $4 million in August, to $35 million; and by $6 million October, to $49 million. It rose by $6 million, to $59 million, in September."

       So down 2M, down 4M, down 6M, and up 6M. -2+ -4 + -6 + 6 = -6. The state of Illinois is down a net of 6 million dollars, in a year when total sales are up 12%. The article does not state what the total sales were however. But hey this is the internet folks. 3,2,1...

http://www.prnewswire.com/news-releases/illinois-lottery-breaks-new-sales-record-in-fiscal-year-2011-127726788.html

here is a good block quote...

"The Illinois Lottery ended fiscal year 2011 on June 30, with another record-breaking year – its ninth consecutive year of increasing sales. During fiscal year 2011, which ran from July 1, 2010 through June 30, 2011, the Lottery generated $2.278 billion in sales, an increase of 3% over last year. Over the past five-year period, since fiscal year 2007, Lottery sales have increased by more than 11%. "

You read that right. Another record year. 2.278 Billion, with a B, in annual sales. And the states share is 41M + 35M + 49M + 59M = 184 Million.

http://www.illinoislottery.com/subsections/news01.htm

The lottery's own page says that 58 cent of every dollar is paid as prizes, the state gets 30 cent, 7 cent is for retailer/ vendor commissions and bonuses, and 5 cent for administrative costs.

Some math, and some double checking later and we have, assuming the total sales of 2.278 billion, as reported: Total prize payout 1,321,240,000. (1.32124 B) Admin costs of 113,900,000 (113.9 M) Vendor take as 159,460,000 (159.46 M) and the State's share as 683,400,000 (683.4 M).

I may not know how to use the square root of -1 in an equation, but I know that 683.4 Million is a hell of a lot more than 184 million. 499.4 Million to be exact. That is 499,400,000 missing from the State's share. I think that the news needs to dig a bit deeper on this one. Why are we not gathering torches and pitchforks, and marching on Springfield? Corruption in Illinois is a big friggin' joke. It's funny too: right up until you realize who it's being played on.

http://www.huffingtonpost.com/2011/09/26/illinois-budget-watchdog-_n_981882.html

"In a statement announcing the report, Laurence Msall, Civic Federation president, described the state's recent budget process as "somewhat improved" over recent years, as the annual gap between revenue and expenses was significantly reduced -- from $3.9 billion to $454 million."

So the amount that the state is short is 45.4 million LESS than what they were shorted by the lottery.  

THAT IS A SURPLUS OF 45.4 MILLION.  Now that may not seem like much when the deficit is 8+ billion, but if each year we take in more than we spend we get out of the hole.  Instead, we are crawling further in.  

All numbers reported are as presented by Northstar lottery group and the Illinois lottery. All derivations are mine, so feel free to double check them. I did twice. All anger, ire, rage, and revolution should be directed toward the State of Illinois.

http://www2.illinois.gov/Pages/ContactUs.aspx

That's the address above. Please let them know how you feel. And remember this crap come the next election. Remind me: I'll re-run this post.