July 22, 2004

BOISE (AP) - The Idaho Lottery posted record ticket sales in the past year that turned into a record profit in what officials believe is another sign that the state's economy is improving.

"People have disposable income, and they're willing to spend it," Lottery Director Roger Simmons said when Wednesday when announcing a dividend of $25 million on sales of $109 million.

That was $4.3 million more than analysts had expected and well above the previous record of $20.6 million set in 1998-1999.

The money is evenly split between public school and state building construction. It is distributed to the 113 school districts on a per-student basis, and the state has traditionally earmarked much of its half for construction on the college campuses.

"The beneficiaries are really the children," Gov. Dirk Kempthorne said at the announcement.

Ticket sales hit $109 million, $12 million more than the old record set last year. That pushed total sales during the Lottery's 15-year history to more than $1 billion.

"The economy's improving," private economist John Church said. "When times are good, you're willing to gamble your money. When times are bad, you hold on to it."

More people willing to fork over a buck or two on the state lottery is not the only sign of an improving economy.

Idaho also reported higher than expected state tax collections, fueled primarily by a surge in income tax receipts, and record employment statewide during June, even though the number of people looking for work was growing faster than the number of new jobs the economy has been creating.

Simmons said five Powerball jackpots in excess of $100 million, including a $261 million jackpot a year ago, and promotion of the Lottery's 15-year anniversary were largely responsible for the boost in sales from mid-2003 through last June. And top ticket sellers were again on the Utah-Idaho border.

"People cross the borders to play the lottery if they don't have one in their state," he said. "As long as we can keep the games fresh and keep the people interested, we'll have a good lottery."

Kempthorne emphasized the importance of the extra cash for school construction, arguing that the state of education is a major issue when businesses consider expanding or relocating in Idaho.

"That's enhancing the economy," the governor said.

But at the same time, Kempthorne and state Lawmakers have limited annual increases in state support for public education to keep the budget balanced through the economic downturn.

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