Arizona Lottery

The Game & Fish Heritage Fund: What its loss will mean to Arizona

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On January 15, 2010, the Governor’s office released a budget plan that proposes to permanently eliminate the Arizona Game and Fish Department’s voter-approved $10 million Heritage Fund and redirect all Arizona State Lottery revenue to the state’s general fund.  That proposal has been sent for consideration by the Legislature.

Adoption of this proposal could have significant impacts on Arizona’s land use and growth that will be vital for the state’s economic recovery, as well as affecting outdoor recreationists and the future well-being of the state’s wildlife.

Arizona Game and Fish is a business-model agency that receives no Arizona tax dollars.  The department acknowledges the difficulties the state faces in addressing the budget situation, but it is critical that the customers who pay the bills in this “user pay, user benefit” model are informed and educated on the potential statewide effects that could result from a permanent elimination of Heritage funding.  Those effects potentially include constraints on land use that could affect our state’s economic recovery.

The 45-minute video below is from an informational public presentation and webcast given by the department on Feb. 2 at its Phoenix office.  The presentation covers the history of the Heritage Fund, what it’s used for, how it benefits Arizona, and the impacts to Arizona citizens if the fund is lost.

Lottery vital for Arizona’s financial plan; will voters keep it?

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[Source: Alexander MacLean, Cronkite News Service] — While other contributors to state revenues have dropped off severely of late, the Arizona Lottery has been a growing source of tens of millions of dollars per year since its inception in 1980.  The lottery funds a variety of voter-approved state programs in areas such as education, health and transportation and has contributed $2.3 billion in all to its beneficiaries.

Its revenue has been so reliable that one proposal for plugging the gaping hole in the state budget involves borrowing against lottery proceeds.  Called lottery securitization, that plan calls for the state to take out a loan and pay it back with annual lottery profits transferred into the state’s general fund.  But while the lottery’s revenue and growth have been certainties, its future isn’t assured.  By law, the lottery must be reauthorized periodically, and the current authorization is scheduled to expire July 1, 2012. [Note: To read the full article, click here.]

Arizona treasurer says changes needed for state budget to be fixed

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[Source: Parker Pioneer, John Gutekunst, 10-8-2009] — Arizona State Treasurer Dean Martin said he hated to be the bearer of bad news when he spoke Wednesday evening at the Parker Community/Senior Center.  He said the state is broke, and he said bad decisions on the part of state officials had more to do with this than the recession.  He added the problems won’t be fixed without some fundamental changes in how the state does business.

Martin described his job as the banker for the state.  He manages the state’s funds and investments.  His office also handles investments for the state’s counties and municipalities.  Prior to being elected Treasurer, Martin served in the Arizona Senate, where he chaired the Finance Committee.  He said he felt frustrated by the lack of long-term planning and the fact there was no “early warning” system for when budget problems were on the horizon.

After he was elected Treasurer in 2006, Martin decided to see if the difference between daily revenue and daily expenditures could be an indicator of the state’s economic health.  By researching records back to 1990, Martin said the difference grew during the good times but dropped in bad times.  During the recession of 2001-02, the numbers actually were negative.  They became positive again as the economy improved.  [Note: To read the full article, click here.]

Arizona State Parks unfreezes grants; funding allows 53 projects to resume

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[Source: Arizona Republic, Amy B. Wang, 10-04-2009] — The budget-beleaguered Arizona State Parks office recently released more than $6.1 million in Heritage Fund grants to benefit historic-preservation projects, trail maintenance, and local and regional parks.  In total, 53 projects around Arizona can move forward with the release of grant money that had been frozen for more than six months, the result of state budget woes that had trickled down to the parks department.  “We are extremely happy to release funding for these very worthy trails, historic preservation and park projects,” said Renée Bahl, executive director of the parks, in a statement.  Twenty-two other projects that had been due to receive Heritage Fund grants were canceled.

The Heritage Fund, created by voters in 1990, is funded by Arizona Lottery sales.  Up to $10 million in proceeds are designated annually for the conservation of the state’s wildlife and natural areas.  The State Parks Board appropriates the money to projects each year.  In February, the department’s grim financial situation forced the board to freeze all grant money.  “It was frozen because we didn’t know that we’d have enough money to operate the agency,” said parks spokeswoman Ellen Bilbrey, citing layoffs that could have affected the staff that worked with distributing the funds. [Note: To read the full story, click here.]