SF 177 – Iowa Lottery proceeds to the Veterans Trust Fund
COMMITTEE ACTION:
SF 177/SSB 1012 offers a more stable source of revenue for the Iowa Veterans Trust Fund (VTF). Currently, the Iowa Lottery must conduct a series of four veteran-themed games (two scratch games and two pull-tab games) annually, with the revenues from the games deposited in the trust fund to help Iowa veterans in need. In Fiscal Year 2014, those games netted $1.8 million. SF 177 requires that $2.5 million in lottery revenues must be transferred annually to the trust fund.
Lottery officials noted that overall sales and proceeds in recent years are strong and repeatedly exceed budget projections, but sales of all of its pull-tab products have declined significantly. The Lottery plans to continue to promote the benefits of the trust fund by including that information in its advertising each year and through public events highlighting the total it has raised for the trust fund. It also will occasionally offer patriotic-themed games, which have always been popular.
The bill includes clarifying language that is designed to protect the state’s bond rating. Lottery proceeds are the back-up source of funding for the Vision Iowa bond payments if casino gaming revenues – the program’s primary funding source – fall short prior to the final payment date in Fiscal Year 2021 for Vision Iowa bonds. It also eliminates reference to the school infrastructure bonds because that debt has already been addressed. SF 177 was referred to the Appropriations Committee. [2/5: short form]