Analysis: Mo. Lottery plan could affect school aid

JEFFERSON CITY, Mo. (AP) - Missouri House members are seeking to boost funding for veterans' homes by diverting more of Missouri's lottery proceeds to the state budget - leaving less for prizes.

But the budget passed by the House doesn't account for another possibility - that if prizes decline, lottery sales might fall, too, and so also might the money that the Missouri Lottery transfers to public schools.

The chain-reaction has happened elsewhere. When Texas reduced its lottery prizes about a decade ago, the result was a significant decline in ticket sales and less money for schools.

But some lawmakers think Missouri can be different. They note that Missouri's prize payouts already are higher than neighboring states and could be trimmed without too much of an effect on sales.

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