Adjusted     Executive
                             Appropriation       Request               Percent
                                   2001-02       2002-03        Change  Change



AGENCY SUMMARY
  Special Rev.-Other           108,543,000   108,543,000            0    0.00%
  Total for AGENCY SUMMARY:    108,543,000   108,543,000            0    0.00%


STATE OPERATIONS
  Special Rev.-Other           108,543,000   108,543,000            0    0.00%
  Total for STATE OPERATIONS:  108,543,000   108,543,000            0    0.00%

Administration of the Lottery
  Special Rev.-Other           108,543,000   108,543,000            0    0.00%
  Total for Program:           108,543,000   108,543,000            0    0.00%



                                                                    
                                                                    
      

                         ALL FUNDS PERSONNEL
                        BUDGETED FILL LEVELS
                                                                    
                                                                    
      
                                   Current     Requested
Program                            2001-02       2002-03   Change
                                                                    
                                                                    
      
Administration of the Lottery          358           358        0
Total All Other Funds :                358           358        0

TOTAL:                                 358           358        0
                                                                    
                                                                    
       




                          BUDGET HIGHLIGHTS
                   (Executive Budget: pp.199-200)

The Division of Lottery is responsible for administering New York
State Lottery games.  The Division estimates gross sales of
$6,100,000,000 and Net Lottery Receipts of $1,697,500,000 for
education in State Fiscal Year (SFY) 2002-03.  
This agency is included in the Transportation and Economic Development
appropriation bill.

State Operations

The Governor recommends an All Funds appropriation of $108,543,000. 
By law, no more than 15 percent of gross lottery sales may be used for
administration.

The Executive recommends marketing up to 34 new Instant games during
SFY 2002-03, with ticket prices ranging from $1 to $10.

The Executive proposes a Retailers Sales Management Plan to assist
retailer promotion of ticket sales.  The Executive recommends 26 FTE
Marketing Representatives for the Management Plan.

The Executive proposes to continue the Leaders of Tomorrow Scholarship
Program to provide New York State high school seniors with annual
awards of $1,000 for four years of undergraduate study at a college
within New York State.  The Scholarship Program was started in SFY
2000-01.  The additional cost of the program for SFY 2002-03 is
approximately $1,200,000.  The full cost of the program for ongoing,
as well as new, scholarships is an estimated $4,000,000.

The Governor also recommends that the Educator of the Week Program
continue.  The purpose of this program is to continue to focus Lottery
efforts which inform New Yorkers of its mission to raise revenue for
education.  The cost of this program is approximately $700,000.
  
Article VII Proposals

The Executive recommends legislation to provide permanent
authorization of Quick Draw and to alter certain restrictions on
hours, space and food sales placed on retailers.

In addition, the Executive also recommends legislation which
authorizes an increased payout for three Instant games.