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Tennessee Lottery shortfall requires reserves

Tennessee LotteryTennessee Lottery: Tennessee Lottery shortfall requires reserves
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$10 million needed to fully fund scholarship grants for students

Are computerized drawings hurting sales?  Will the Tennessee Lottery bring back real ball drawings?  Why is Powerball always blamed for poor financial showing in Tennessee?

The state of Tennessee probably will have to pull about $10 million from reserves to keep lottery scholarships fully funded this year, budget officials said after reporting a revenue shortfall last week.

State Budget Director Bill Bradley said the state will fall short by an additional $3.2 million of the $266 million needed to fund the scholarships. Gov. Phil Bredesen already had requested $6.6 million from reserves to cover a projected shortfall in the scholarship fund. The full amount is likely to come from the $381 million lottery reserve fund.

About 88,000 lottery scholarships were awarded in 2008-09.

Although lottery ticket sales are slightly higher than they were at this point last year, the state has also paid out more prizes, as players chose games with higher chances of winning. Powerball revenues also declined due to the lack of a jackpot in the range of $200 million-$300 million, a figure that typically draws more players.

"The difference in not having a $300 million Powerball jackpot is as much as $25 million (to the state)," said Rebecca Hargrove, president of the Tennessee Education Lottery Corp.

The state probably will have to take out more from reserve funds next year, when the cost of the lottery scholarships is expected to rise to $276.5 million as students remain eligible for the money and others get scholarships for the first time. At the same time, the lottery corporation does not expect revenue to increase next year.

Last year legislators lowered the grade-point-average standards and expanded eligibility for the state's HOPE scholarship, which gives $2,000 to students at two-year schools and $4,000 to university undergraduates.

The state spent $225.8 million on about 76,300 scholarships the year before the standards were changed, according to the Tennessee Higher Education Commission.

Expansion is in doubt

The shortfall probably means the end to requests from lawmakers to expand the lottery scholarship program this year.

Despite the lower revenue, Rep. Gary Moore, D-Joelton, expects the legislature to pass a bill expanding a grant program created last year for Iraq and Afghanistan war veterans.

Last year $439,200 of the fund's maximum amount of $750,000 was used for the grants.

"The money was set aside for that purpose, and it's the only reason we have the money there to do it," Moore said.

He was doubtful, however, that a separate bill for $33,000 in grants for firefighters in training would make it through the legislature.

Thanks to four4me for the tip.

Tennessean

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31 comments. Last comment 8 years ago by chattanoogadog.
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The Quantum Master
West Concord, MN
United States
Member #21
December 7, 2001
3675 Posts
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Posted: May 4, 2009, 7:03 pm - IP Logged

From what I've read from other Tennessee players online here at the Lottery Post, Players not only need to feel like they have the chance to win, they must also experience the win; no matter what the prize size. Sustainability does not come from some a state lottery figure-head telling everyone how great and wonderful computer generated numbers are, it comes from the players themselves; through their actions that generate revenue. When someone feels they can't win by chance and experience the satisfaction of a reasonable win, they tend to not play. Hence, the drop in sales. Now their may be those who would like us to believe it's some other reason why they have failed to convince us computer generated numbers are the real deal, but that is the just same-old, same-old. As long as lottery players feel they have no chance of winning, by chance and actual experience, then the revenues will continue to be low.

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Jehocifer

    Avatar
    Huntsville AL
    United States
    Member #16531
    June 1, 2005
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    Posted: May 4, 2009, 8:14 pm - IP Logged

    In Ohio the drawing are shown on TV stations around the state take between one anad two minutes and that includes a lotto ad.

      MADDOG10's avatar - smoke
      Beautiful Florida
      United States
      Member #5709
      July 18, 2004
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      Posted: May 4, 2009, 8:25 pm - IP Logged

      What the State of Tennessee ought to do, is take the 10 million dollar shortfall out of

      Mrs. Hardnose's salary, this way they can kill two birds with one shot.

      That would get rid of her, and the computerized drawing would surely follow her home...

      Adios sin-or-eta. Have a nice trip, see ya next fall....!

                                              lady                                                                                                         

         

                                                                                                                       

                                                                         

                                                   

                                                     "  When Injustice Becomes Law, Resistance Becomes Duty "

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        NASHVILLE, TENN
        United States
        Member #33372
        February 20, 2006
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        Posted: May 4, 2009, 8:26 pm - IP Logged

        The reason I stopped playing the Tennessee Lottory is due to the lack of transparency.  Today, the officials go into a little windowless room, press the enter key on a computer, walk out and then annouce what the winning numbers were.  What goes on in that room is anyone's guess.  My guess is they chose the combination that will result in the least amount of payout  in each game. 

        Until they return to ball draws and show the balls dropping, I will continue to spend my lotto dollars in Illinois and Georgia.

          Littleoldlady's avatar - basket
          Clarksville
          United States
          Member #487
          July 15, 2002
          17638 Posts
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          Posted: May 4, 2009, 8:28 pm - IP Logged

          When lottery players don't win, they don't SPEND!!

          If you know your number is going to hit, have patience and then KILL IT!

          You never know when you will get another hit.


            United States
            Member #62741
            July 7, 2008
            601 Posts
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            Posted: May 4, 2009, 8:39 pm - IP Logged

            Thats what RPAUL ALWAYS SAYS "ITS Powerball sales" she is insane,thats not true at all and she knows it...its all the other TN online games that TN messed up when they brought in RNG and did not even tell the players of the change..change in drawbreak times,lucky sum...its not even on the Tn cash 3 or cash 4 playslip,they should have printed new slips by now,the scratches??????

            Bring back the ball drawings NOW!!! C2


              United States
              Member #62741
              July 7, 2008
              601 Posts
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              Posted: May 4, 2009, 8:40 pm - IP Logged

              When lottery players don't win, they don't SPEND!!

              Did you read the big Pauly?Little hit it ,cause thats all we can hit in TN!C2

                Todd's avatar - Cylon 2.gif
                Chief Bottle Washer
                New Jersey
                United States
                Member #1
                May 31, 2000
                23259 Posts
                Offline
                Posted: May 4, 2009, 8:42 pm - IP Logged

                Thats what RPAUL ALWAYS SAYS "ITS Powerball sales" she is insane,thats not true at all and she knows it...its all the other TN online games that TN messed up when they brought in RNG and did not even tell the players of the change..change in drawbreak times,lucky sum...its not even on the Tn cash 3 or cash 4 playslip,they should have printed new slips by now,the scratches??????

                Bring back the ball drawings NOW!!! C2

                If you check the "Related Stories" box above, you'll see another article from 2008 where she blamed Powerball also.  I guess when you're looking for cover, it always helps to blame someone else!

                 

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                  United States
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                  February 18, 2008
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                  Posted: May 4, 2009, 8:46 pm - IP Logged

                  What the State of Tennessee ought to do, is take the 10 million dollar shortfall out of

                  Mrs. Hardnose's salary, this way they can kill two birds with one shot.

                  That would get rid of her, and the computerized drawing would surely follow her home...

                  Adios sin-or-eta. Have a nice trip, see ya next fall....!

                                                          lady                                                                                                         

                     

                                                                                                                                   

                                                                                     

                  This is the best solution to the problem that I've read,yet!


                    United States
                    Member #62741
                    July 7, 2008
                    601 Posts
                    Offline
                    Posted: May 4, 2009, 8:47 pm - IP Logged

                    If you check the "Related Stories" box above, you'll see another article from 2008 where she blamed Powerball also.  I guess when you're looking for cover, it always helps to blame someone else!

                    Todd,

                    Thats funny Iwas just telling the old lady the same thing  RPaul said the same thing last time there was a problem,as u said, or i SAID, UH??ChairC2

                      JAP69's avatar - alas
                      South Carolina
                      United States
                      Member #6
                      November 4, 2001
                      8790 Posts
                      Offline
                      Posted: May 4, 2009, 8:59 pm - IP Logged

                      "Last year legislators lowered the grade-point-average standards and expanded eligibility for the state's HOPE scholarship,"

                      When there is an expansion to make more students eligible to use up the funds it will come back to bite you when their is a shortfall of funds.

                      WHATT

                        konane's avatar - wallace
                        Atlanta, GA
                        United States
                        Member #1265
                        March 13, 2003
                        3333 Posts
                        Online
                        Posted: May 4, 2009, 9:21 pm - IP Logged

                        What the State of Tennessee ought to do, is take the 10 million dollar shortfall out of

                        Mrs. Hardnose's salary, this way they can kill two birds with one shot.

                        That would get rid of her, and the computerized drawing would surely follow her home...

                        Adios sin-or-eta. Have a nice trip, see ya next fall....!

                                                                lady                                                                                                         

                           

                                                                                                                                         

                                                                                           

                        ROFL ROFL ROFL  I Agree!  I Agree!  I Agree! I Agree!

                        Computerized drawings back home roosting on Hargrove's head. Green laughThe irony of it all.  Green laugh

                        Good luck to everyone!

                          hummer09's avatar - hiro bird.jpg
                          Fayetteville, Tennessee
                          United States
                          Member #72781
                          March 27, 2009
                          98 Posts
                          Offline
                          Posted: May 4, 2009, 9:53 pm - IP Logged

                          "Last year legislators lowered the grade-point-average standards and expanded eligibility for the state's HOPE scholarship,"

                          When there is an expansion to make more students eligible to use up the funds it will come back to bite you when their is a shortfall of funds.

                          Totally agree with both littleoldlady and JAP79.  Both are route causes.

                            four4me's avatar - gate1
                            MD
                            United States
                            Member #1701
                            June 18, 2003
                            8359 Posts
                            Offline
                            Posted: May 5, 2009, 1:24 am - IP Logged
                            Thanks Todd for giving me credit for this story I try and send any pertinent information to you instead of posting it. Since you have said so many times if we find something like a lottery related story to forward it to your PM box.  
                             
                            I try and keep abreast of Tennessee's lottery ever since they screwed up their lottery by switching from real live ball drawings to computers to draw numbers. I still cant believe that Hargrove did this it pains me that somebody with her experience would take this route. If i lived in Tennessee i would definitely have a petition going to eliminate the computer drawings.
                             
                            It is also hard to believe that the elected officials that investigated this have abandoned the people of Tennessee by not pursuing real live ball drawings. Undoubtedly Hargrove pressed her issues about how great computers are at drawing numbers. Evidently she convinced them that she was making money for the state. The elected officials should have had the peoples interest at heart. Now maybe if Tennesseans would contact the news media and voice their plea to get the ball drawings back in action maybe the elected officials will help get it done. However the elected officials can't do anything without player support.
                             
                            Some people left some good comments at the Tennessean news article. People interested in getting live drawings again should contact the paper and voice their opinions.  
                             
                            I did everything i could now it up to the people of Tennessee. 
                             
                            link to the story at the Tennessean Lottery shortfall requires reserves