Adjusted         Executive                       
                                 Appropriation           Request                       Percent 
                                       2000-01           2001-02            Change      Change 

AGENCY SUMMARY
  Special Rev.-Other               112,284,400        115,418,000        3,133,600       2.79%
  Total for AGENCY SUMMARY:        112,284,400        115,418,000        3,133,600       2.79%


STATE OPERATIONS
  Special Rev.-Other               112,284,400        115,418,000        3,133,600       2.79%
  Total for STATE OPERATIONS:      112,284,400        115,418,000        3,133,600       2.79%

Administration of the Lottery
  Special Rev.-Other               112,284,400        115,418,000        3,133,600       2.79%
  Total for Program:               112,284,400        115,418,000        3,133,600       2.79%



                                                                                                                                                

                         ALL FUNDS PERSONNEL
                        BUDGETED FILL LEVELS
                                                                                                                                                
                            Current  Requested
Program                     2000-01    2001-02    Change
                                                                                                                                                
Administration of the Lottery   332        358        26
Total All Other Funds:          332        358        26

TOTAL:                          332        358        26
                                                                                                                                                 



                           BUDGET HIGHLIGHTS
                   (Executive Budget: pp. 227-229)

The Division of Lottery is responsible for administering New York State Lottery 
games.  The Division estimates gross sales of $4,400,000,000 and Net Lottery 
Receipts of $1,525,300,000 for education in State Fiscal Year (SFY) 2001-02. 
This assumes the Governor's multi-state lottery game is approved by the 
Legislature and Quick Draw is maintained.  This agency is included in the 
Transportation, Economic Development and Environmental Conservation Budget Bill.

State Operations

The Governor recommends an All Funds Appropriation of $115,418,000, an increase 
of $3,133,600 from SFY 2000-01. 
This increase reflects salary increases, increased contractual costs and 
increased advertising and printing costs.  By law, no more than 15 percent of 
gross lottery sales may be used for administration.

The Executive recommends implementing a Retailer Sales Management Plan to assist 
retailer promotion of ticket sales.  In addition, the Executive proposes 26 new 
Full-Time Equivalent Marketing Representatives for the Management Plan.
 
The Governor proposes to continue the Leaders of Tomorrow Scholarship Program at 
$3,080,000 to provide New York State high school seniors with annual awards of 
$1,000 for four years of undergraduate study at a college within New York State.  
The Scholarship Program was started in SFY 2000-01.

The Executive also recommends establishing an initiative called the New York 
Lottery Youth Entrepreneurship Program. This Program will be funded with 
$500,000 from the Lottery Division and will be offered to students in grades 8 
to 12 across New York State.  The intent of the Entrepreneurship Program is to 
develop, train and encourage students to start and run small businesses.

Article VII Proposals

The Executive recommends legislation to authorize the Division of Lottery to 
participate in multi-state games such as Powerball.  Legislation is also 
proposed to provide permanent authorization for the operation of Quick Draw.