The Georgia Lottery said Wednesday it posted record high numbers for sales and profits in fiscal year 2012. But the program still can't keep up with the increasing demand for lottery-funded programs.
The lottery said it totaled $3.8 billion in sales between July 1, 2011 and June 30, 2012. That's more than $236 million ahead of last year's sales. It transferred more than $900 million to state coffers to fund the HOPE scholarship and pre-kindergarten programs, about $55 million more than last year's figures.
While successful, the lottery can't keep up with growing enrollment and rising tuition in Georgia's colleges. To prevent HOPE from going broke, lawmakers overhauled the program to do away with full scholarships for most students. It also no longer pays for books or campus fees.
The additional $55 million will have little benefit for students currently receiving the scholarship because Gov. Nathan Deal and the Legislature already set HOPE payouts for the academic year that starts next month.
It is doubtful the increased deposit will reverse HOPE's financial troubles. First off, the program paid out nearly $748 million during the 2011 fiscal year and about $462 million during the 2012 fiscal year, according to figures from the Georgia Student Financial Commission, which administers the program.
Also, HOPE scholarship payouts are projected to drop for the 2014 fiscal year. To prevent that from happening the state would need an additional $104 million, according to commission estimates. Meanwhile lottery revenue is projected to remain relatively flat, although more students are expected to attend college and be eligible for the scholarship.
Any drop in award payouts will translate to a larger out-of-pocket expense for students and their families because tuition and fees are expected to increase.
Still, the numbers were a bright spot for the organization, which was eager to boast about the highest numbers in the lottery's 19-year history. Part of the growth was fueled by strong performing instant games and the world-record $656 million Mega Millions jackpot in March.
Georgia Lottery chief executive Margaret DeFrancisco said the board would continue to work to increase revenues by exploring "new channels" for growth.
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