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Eastern Time (GMT-5:00) | Home -> Forums -> Lottery News -> New York Lottery axes $1.4M in scholarships after taking in $7.5 billion in 2008 New York Lottery axes $1.4M in scholarships after taking in $7.5 billion in 2008 New York Lottery: New York Lottery axes $1.4M in scholarships after taking in $7.5 billion in 2008The New York Lottery has quietly halted its college scholarship program for more than 1,150 high school seniors, blaming the governor's budget cuts. One student from every high school in the state has been eligible for a $5,000 Leaders of Tomorrow scholarship since 2000. The cut will save the agency, which took in about $7.5 billion in revenues last year, about $1.4 million. A Lottery spokeswoman said the cut was necessary to comply with Gov. Paterson's request that all agencies cut about 10% of their budgets. She said the agency did not want to reduce parts of its budget that helped bring in revenue, such as its $81.7 million advertising budget. "The idea is that we spend millions to return billions," Carolyn Hapeman said. The awards, which can be spent on any private or public college in the state, have helped thousands of city students go to college. "I don't know where I would have made up that other money," said Vivian Garcilazo whose son, Maximillian Osaben, won the prize last year as a senior at Urban Academy on Manhattan's East Side. The single mother said she wasn't sure if she could have afforded to send her son to Skidmore College, where he received the highest honors on the dean's list last semester, without the extra help. "I'm stretched to the limit," said Garcilazo, 52, who lives in Harlem. "It really helps." Current recipients, like Osaben, will not lose their funding. Since its inception, state officials have justified having the Lottery by saying that it would help fund education. Last year, the agency gave out about 53% of its income — about $3.97 billion — in prizes and about 34%, or $2.56 on education. It spent $885 million to pay retailers and contractors commissions. Opponents have long criticized the lottery as an ineffective way to fund education, making money disproportionately from people in the lower income brackets. "Their whole schtick is that they're helping education, and now they're taking back a part of that," said state Sen. Frank Padavan (D-Queens). "They're totally insensitive to the impact this will have on families." The agency defends its spending priorities, and contends that it receives $5 for every dollar spent on ads. Hapeman said officials hoped to be able to restore the scholarship next year. "I was planning to submit several kids," said Tom Porton, a teacher at Monroe Academy for Visual Arts and Design. "It's particularly painful time now to cut scholarships like these." Daily News We'd love to see your comments here! Register for a FREE membership — it takes just a few moments — and you'll be able to post comments here and on any of our forums. If you're already a member, you can Log In to post a comment. 9 comments. Last comment 3 years ago by . Clarksville United States Member #489 July 15, 2002 13552 Posts Offline | | Posted: February 27, 2009, 7:10 pm - IP Logged | |
This is the most ridiculous and assinine thing I have ever heard . Someone should investigate this lottery. This is wrong. They didn't want to cut their 88 MILLION dollar advertising budget? That is the most stupid thing I have ever heard. These children need to be able to go to college. That is what the lottery was brought into being for-to help children go to college.! Maybe the person who thought of this could really save the state some money by resigning. Or maybe yet, they are using the advertising fund as a slush fund so they can spend it on what they want ..whatever it is. Parties, junkets, spa trips, expensive gifts, etc. It takes Everyone's input to HIT the number..all are equally important. | | |
United States Member #34665 March 1, 2006 187 Posts Offline | | Posted: February 27, 2009, 8:01 pm - IP Logged | |
......meanwhile stock trades on wall street go un-taxed.......go figure | | |
Chief Bottle Washer New Jersey United States Member #1 May 31, 2000 19729 Posts Online | | Posted: February 27, 2009, 8:30 pm - IP Logged | |
......meanwhile stock trades on wall street go un-taxed.......go figure Every hear of Capital Gains Tax? They get hammered too. Plus, the outrageous fees for every trade makes it quite "taxing". | | |
Viva La Chance! Rockville, MD. United States Member #44542 July 30, 2006 3730 Posts Offline | | Posted: February 27, 2009, 9:11 pm - IP Logged | |
The New York Lottery has quietly halted its college scholarship program for more than 1,150 high school seniors, blaming the governor's budget cuts. One student from every high school in the state has been eligible for a $5,000 Leaders of Tomorrow scholarship since 2000. The cut will save the agency, which took in about $7.5 billion in revenues last year, about $1.4 million. A Lottery spokeswoman said the cut was necessary to comply with Gov. Paterson's request that all agencies cut about 10% of their budgets. She said the agency did not want to reduce parts of its budget that helped bring in revenue, such as its $81.7 million advertising budget. "The idea is that we spend millions to return billions," Carolyn Hapeman said. The awards, which can be spent on any private or public college in the state, have helped thousands of city students go to college. "I don't know where I would have made up that other money," said Vivian Garcilazo whose son, Maximillian Osaben, won the prize last year as a senior at Urban Academy on Manhattan's East Side. The single mother said she wasn't sure if she could have afforded to send her son to Skidmore College, where he received the highest honors on the dean's list last semester, without the extra help. "I'm stretched to the limit," said Garcilazo, 52, who lives in Harlem. "It really helps." Current recipients, like Osaben, will not lose their funding. Since its inception, state officials have justified having the Lottery by saying that it would help fund education. Last year, the agency gave out about 53% of its income — about $3.97 billion — in prizes and about 34%, or $2.56 on education. It spent $885 million to pay retailers and contractors commissions. Opponents have long criticized the lottery as an ineffective way to fund education, making money disproportionately from people in the lower income brackets. "Their whole schtick is that they're helping education, and now they're taking back a part of that," said state Sen. Frank Padavan (D-Queens). "They're totally insensitive to the impact this will have on families." The agency defends its spending priorities, and contends that it receives $5 for every dollar spent on ads. Hapeman said officials hoped to be able to restore the scholarship next year. "I was planning to submit several kids," said Tom Porton, a teacher at Monroe Academy for Visual Arts and Design. "It's particularly painful time now to cut scholarships like these." From above: "Last year, the agency gave out about 53% of its income — about $3.97 billion — in prizes and about 34%, or $2.56 on education". WOW $2.56, definitely they mean $2.56 Billion, right? OK $2,560,000,000 not $2.56, enough to buy one Filet O Fish, no actually just half a Filet O Fish. $1.4 million is $1,400,000. $1.4M of $2.56B is .000546875% of $2.56B (2,560,000,000 USAmerican dollars)! This is exactly what is wrong with having bureaucrats running the lottery, they write rules, mandates, and mission objectives, and then they rape the original intent. In order to save a measley .000548675% of billions they gladly tell $1,400,000/$5000 = 285 students to go kiss off..........................what! the math is not right again, they claim 1150 students at $5,000 apeice that equals $5,750,000 $5.75 Million just a minor BOOBOO, the math is screwy but the elimination of the scholarships is nevertheless inappropriate, petty and cruel. Chuccky Schmucky Schlumer and the Gov. of NY. should be all over this government sponsored betrayal of the future of the young citizens of NY USA. | | |
NY United States Member #24178 October 16, 2005 2127 Posts Offline | | Posted: February 28, 2009, 2:47 am - IP Logged | |
You're off by a factor of 100; the reduction is 0.05%. Instead of giving $2,560,000,000 they'll be giving $2,558,600,000. That's not news, it's a minor bookkeeping entry that's essentially meaningless. Instead of eliminating scholarships I'd rather see it done as a reduction in aid to the actual schools. For 1150 schools, it would be an average reduction of $1217.39*. They could save that by not driving the school buses to a couple of football or basketball games. *Notice how close that is to 1/4 of $5000. I'm guessing that the $5000 is paid as $1250 per year, and at present they're only eliminating it for one year. That would mean that 1150 students won't be getting $1250 in either of the next 3 years, either, so there will be a savings of about $1.4 million in each of those years, too. | | |
NY United States Member #24178 October 16, 2005 2127 Posts Offline | | Posted: February 28, 2009, 2:49 am - IP Logged | |
This is the most ridiculous and assinine thing I have ever heard . Someone should investigate this lottery. This is wrong. They didn't want to cut their 88 MILLION dollar advertising budget? That is the most stupid thing I have ever heard. These children need to be able to go to college. That is what the lottery was brought into being for-to help children go to college.! Maybe the person who thought of this could really save the state some money by resigning. Or maybe yet, they are using the advertising fund as a slush fund so they can spend it on what they want ..whatever it is. Parties, junkets, spa trips, expensive gifts, etc. What would be truly stupid is reducing the advertising budget when they're grossing almost $92 for every $1 spent on advertising. I'm sure it's not a linear correlation, but it's a fairly safe bet that cutting $1 million from advertising would result in losing at least $10 to $20 million in sales. Unless your math is really special, that doesn't save money. | | |
Viva La Chance! Rockville, MD. United States Member #44542 July 30, 2006 3730 Posts Offline | | Posted: February 28, 2009, 8:42 am - IP Logged | |
Thanks Floyd, you are correct I didn't X 100 for precentage. | | |
Viva La Chance! Rockville, MD. United States Member #44542 July 30, 2006 3730 Posts Offline | | Posted: February 28, 2009, 2:59 pm - IP Logged | |
Yeah I know, percentage, it's been one of those short month end of the monther funners. 
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West Side of Sunny Florida United States Member #55518 September 8, 2007 3371 Posts Offline | | Posted: March 1, 2009, 11:06 am - IP Logged | |
I have never understood WHY the lottery is set up as it is. Why should so much money go to schools? Why not just keep enough money to 'run' the lottery and PAY BACK the rest in winnings to the players. This would increase the money won by players. It’s inefficient to 'run' the money 'through' the lottery to get it to the schools. Money won is twice as good as money earned! | | |
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