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What will happen to lottery-funded schools in Texas?

The Texas lottery might be eliminated soon. This affects public schools.

A photo of a school classroom in Texas.
Halley Bondy

Texas schools receive $2 billion from lottery revenue every year. Now, funding is yet another point of controversy in the melee surrounding the Texas Lottery Commission.

The state only has 30 days to decide whether to keep or dissolve the state lottery, which could impact school budgets, and many other things.

Three ways for the commission to die

The Lottery Commission is on the chopping block thanks to a series of scandals. According to the Texas Tribune, there are a couple avenues for total abolition of the commission, which would eliminate a $2 billion annual source for public schools.

First, State Sen. Bob Hall proposed a bill to kill the commission completely, which is currently under consideration.

”It's definitely the nuclear option, but what you have described is incredibly disturbing,” Sen. Angela Paxton said during the Senate State Affairs Committee hearing on Monday, referring to vast allegations of corruption.

Secondly, a House amendment was approved in April that would remove all funding for the commission. This money will have to be returned before the budget is passed.

Third, in another bout of bad luck and timing for the lottery commission, the agency is up for review by the Texas Sunset Advisory Commission, a government assessment which happens every 12 years. The commission will dissolve if it's not renewed.

All three of these things have to happen for the lottery to be saved.

How the school allotment works

The state budget, which must be voted on in 30 days, allocates $8 billion to public schools. Two billion dollars comes from lottery revenue.

If the lottery is eliminated, the state will need to find a new $2 billion source, according to the Texas Tribune.

Currently, the money is slated to pay for things like allotment per student and teachers' raises, thanks to a House bill that passed in April. However, if the lottery commission is abolished, school advocates worry that the Senate could take $2 billion out of these school proposals.

Hall, however, proclaimed that the $2 billion will be replaced. During the hearing, Hall said:

We keep billions of dollars around here, like you or I would spend nickels and dimes, so it's not that significant.

Where does the lottery commission's hate come from?

The lottery commission has been under fire ever since an entity called Rook TX took home a $95 million Lotto Texas win in 2023. It was discovered that the entity had purchased 27 million tickets in every possible combination, ensuring the win, and that the Texas Lottery Commission allegedly bent the rules to allow it to happen, according to the Houston Chronicle.

In another instance this year, a player won $83.5 million through the online courier service Jackpocket. Lt. Gov. Dan Patrick called foul on the win, alluding that courier services aren't regulated. He noted that the store where the winning ticket was purchased, Winners Corner in Austin, was suspiciously lucky. It was owned by Jackpocket.

The commission is under investigation, but the legislature didn't hesitate to move quickly, banning courier services.

It didn't help that the 2023 commissioner executive may have fled to Mexico, according to Texas Scorecard, while another resigned after a year.

Eliminating the lottery? Really?

Yes, the Texas lottery could be completely gone in 30 days. This affects laws, retailers, and schools, as well as players who may not be privy to the legislative turmoil.

It also affects veterans. Josey Garcia. Garcia, a veteran, pointed out that the lottery also contributes $26 million per year through the Texas Veteran Commission Fund for Veterans' Assistance. She was one of the few voices of moderation during the hearing. She believes the lottery is good for the public but that it needs scrutiny, not full elimination. Garcia stated:

If we know that there's potential mishandling, then there needs to be a full review and you need to rehire, because that one thing that we can't accept from our government is the mishandling of any resources.

The Texas Lottery Commission was established in 1991.

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