Correction: A previous version of this story incorrectly stated that $3.4 million of Virginia Lottery revenue goes to prizes. The correct figure is $3.4 billion in prizes.
Every time you scratch a ticket or pick numbers for a jackpot, the Virginia Lottery says you are helping to fund public education.
In fact, the Lottery says it generated more than $867 million for K-12 schools across the state just this year.
“All of us who work at the lottery are very proud of the fact that what we're doing helps Virginia, that the money that we raise goes to K-12 education in Virginia,” John Hagerty, spokesperson with the Virginia Lottery, said.
With more and more Powerball and Mega Millions jackpots, that means more money is coming into Virginia, but that doesn’t necessarily mean local schools are cashing in.
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And some local economists say the Lottery’s funding of the education budget isn’t as spectacular as is touted.
“Instead of the lottery doing a one-to-one supplement, they (lawmakers) basically take money out of the education budget and put lottery money in its place,” Bob McNab, professor and chair of the economics department at Old Dominion University, said. “In other words, here’s my budget, I take some money out of that, I replace it with lottery money, and go, ‘Look at how the lottery is funding education.’”
How are funds allocated
Hagerty said the lottery plays a bigger role in the education budget than some may think.
“If the money that the lottery raises were suddenly not to be available for education, it would rip an $867-million hole in the state's education budget,” he said. “Where would that money come from?”
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But McNab said critics often reject that argument because funds in the education budget are ‘fungible,’ meaning lawmakers can take money out of the budget and replace it with money from another source.
“It allows people to say, ‘Look, education money is being supplemented by the lottery,’” he said. “And other people argue education money is being taken away because of the lottery.”
Problem Solvers wanted to know more about how the funding is allocated, so we reached out to the Virginia Department of Education.
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They declined an interview but sent us data on how much money each school district receives and the programs Lottery money helps fund.
“Each of those programs has its own funding formula that is set by the General Assembly,” a spokesperson with the Virginia Department of Education, said in an email.
The Virginia Constitution requires the Board of Education to formulate Standards of Quality for public schools, which helps the General Assembly calculate how much funding should be allocated to each school.
How much money a school receives is based upon factors, such as the number of students in a given school, staffing numbers, teacher salaries, inflation, among others.
Of the seven cities, Virginia Beach receives the most funding at almost $35 million.
Newport News is next with $33.5 million, followed by Norfolk City Public Schools with $28.2 million.
Suffolk receives the least amount of money at roughly $10.3 million.
Hagerty said about two-thirds of money in the budget goes to funding federal and state programs, such as special education programs, early reading intervention programs, and more.
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He said the other one-third of the funds go directly to schools for them to use as they see fit.
But Lauren Nolsasco, spokesperson with Portsmouth City Public Schools, said in an email that that’s not necessarily the case.
She said schools are limited on what they can spend the money on and have to allocate funding to programs directed by the state, rather than having free reign to exercise spending on anything they want.
“Divisions are not allowed to just spend lottery funds as they see fit for their schools,” Nolasco said in an email. “The state only authorizes the use of lottery funds for specific programs. We do not have flexibility to spend lottery funds for any other purposes.”
What programs local schools prioritize
Problem Solvers contacted the seven cities’ school districts in Hampton Roads to ask how they prioritize their funding.
Five of the seven districts responded: Hampton, Newport News, Portsmouth, Suffolk, and Virginia Beach.
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Below is information Problem Solvers received from school districts and the Department of Education outlining how each school system is allocating their funds this year:
- Hampton
- K-3 Primary Class Size Reduction - Research shows reduced pupil/teacher ratios and class sizes result in improved academic performance among children. Program seeks to reduce pupil/teacher ratio and class sizes for grades K through three in schools with high or moderate concentrations of at-risk students.
- At-Risk - Programs to support services for high-risk youth, such as students who require temporary or ongoing intervention in order to succeed academically, and students that have a higher-than-average probability of dropping out or failing school
- Special Education - Regional Tuition - Services for students with low incidence disabilities
- Early Reading Intervention - Provides reading intervention services to students in kindergarten through grade three who demonstrate deficiencies based upon their individual performance on the Standards of Learning reading test or any reading diagnostic test that meets criteria established by the Department of Education.
- SOL Algebra Readiness - provides mathematics intervention resources and services to students in grades six through nine who are at risk of failing the Algebra I end-of-course test
- Infrastructure and Operations - Funding to promote and support a secure and robust technology infrastructure to support access, adequacy, and equity
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- Newport News
- Foster Care - For youth in foster care, a change in home placement oftentimes results in a change in school placement. This program mandates educational stability for children in out-of-home care and requires child welfare agencies coordinate with local education agencies to ensure educational stability for every child in foster care.
- At-Risk
- Early Reading Intervention
- Mentor Teacher Program - Seeks to help school divisions recruit new teachers, improve teacher retention rates and help expand the skills and knowledge of new and veteran teachers
- K-3 Primary Class Size Reduction
- SOL Algebra Readiness
- Alternative Education - Instructional programs for students who have a pending violation of a school board policy, have been expelled or long-term suspended, or have been released from a juvenile correctional center and have been identified by the superintendent of the Department of Correctional Education and the program’s local division superintendent to be in need of an alternative program
- Special Education - Regional Tuition
- Career & Technical Education - Programs designed to prepare young people for productive futures while meeting the commonwealth’s need for well-trained and industry-certified technical workers
- Infrastructure & Operations
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- Portsmouth
- Mentor Teacher Program
- Project Graduation - Provides instructional support for students in need of verified credits for graduation.
- Special Education - Regional Tuition
- Suffolk
- Hiring of staff to lower elementary class sizes
- Literacy and reading programs
- Programs to support at-risk youth
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- Virginia Beach
- Foster Care
- At-Risk
- Early Reading Intervention
- Mentor Teacher Program
- K-3 Primary Class Size Reduction
- School Breakfast - Meal program that helps schools provide nutritious breakfasts to students.
- SOL Algebra Readiness
- Project Graduation
- Individual Student Alternative Education Plan - Program designed for students who are at least 16 years of age and enrolled in high school programs who are having difficulty finding success in a regular classroom environment.
- Special Education-Regional Tuition
- Career and Technical Education
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The Virginia Lottery encourages people to gamble responsibly.
If you or someone you know has a gambling problem, you can call 1-888-532-3500.
Below is a list of resources for individuals facing problem gambling:
