LANSING, MI. (WOWO) Michigan lottery ticket sales generate more than one billion dollars a year for education, but only a portion of each dollar ultimately supports classrooms. An analysis by Bridge Michigan shows that for every dollar spent on a lottery ticket, about 63 cents goes to prizes, nine cents to retailer commissions and roughly three cents to administrative costs. That leaves about 25 cents directed to the state’s School Aid Fund.

The School Aid Fund is used to support K-through-12 schools, early childhood programs, community colleges, public universities and school employee retirement systems. Bridge Michigan reports lottery proceeds make up less than six percent of the total fund, which is primarily supported by sales, income and property tax revenue.

After accounting for spending on higher education and pension obligations, Bridge Michigan estimates that about 22 cents of each lottery dollar supports pre-K through 12 programs. How that money is spent once it reaches school districts varies, with most funding used for salaries, benefits, transportation and classroom materials.

During the 2023–2024 school year, districts reported more than 15 billion dollars in state revenue. Lottery proceeds accounted for about eight percent of that total, according to Bridge Michigan’s review of state financial data.

While Michigan’s constitution allows lottery funds to be used for higher education, some education advocates argue the money should be dedicated exclusively to K-through-12 schools. Bridge Michigan reports lottery contributions have consistently made up between five and seven percent of school aid revenue for decades, though recent totals are down from previous years.

Researchers cited by Bridge Michigan say competition from casinos, online gambling and sports betting may be contributing to the decline, along with rising costs that leave consumers with less discretionary income.