Res. No. 1042

Resolution calling upon the New York State Legislature to pass, and the Governor to sign, legislation that would reinstate the Barbara Clark Leaders of Tomorrow scholarships funded by the New York Lottery

By Council Members Treyger, Barron, Greenfield, Johnson, Rose, Richards, Chin, Grodenchik, Miller, Koslowitz and Torres

Whereas, Under Article 1, section 9 of the New York State Constitution, generally only the State may operate a lottery, “the net proceeds of which [must] be applied exclusively to or in aid or support of education” “as the legislature may prescribe”; and

Whereas, The New York Lottery is an enterprise fund of the State of New York now administered by the New York State Gaming Commission’s Lottery Division;

Whereas, The New York Lottery offers traditional lottery games and also video lottery gaming, both of which fund the Lottery’s annual contribution to aid education; and

Whereas, State law and regulations generally dictate the formula and timing for distributing these net lottery proceeds statewide to support education, including funds for schools and textbooks; and

Whereas, Beginning in 1999, the New York Lottery awarded a Leaders of Tomorrow scholarship to one graduating senior from every participating public and private high school in New York State based on demonstrated academic ability, extracurricular participation and commitment to community service; and

Whereas, Students awarded a Leaders of Tomorrow scholarship in 2007-2008 or later received a $5,000 scholarship, in the form of $1,250 per year so long as they remained eligible, to help cover attending any New York accredited college, university, trade school or community college; and

Whereas, According to the New York Lottery, those scholarship funds critically supported the ability of over 10,000 students and families to finance postsecondary education, including hundreds of individuals in New York City alone; and

Whereas, The New York Lottery stopped awarding the Leaders of Tomorrow scholarships in 2010; and

Whereas, According to news reports at the time, the New York Lottery said that it ended the scholarship program, which cost over $1 million per year, due to necessary budget cuts and fiscal constraints; and

Whereas, According to year-end reports, the New York Lottery took in $7.54 billion in lottery sales and video gaming net win (that is, the amount gained by the New York Lottery on video gaming once players’ winnings are deducted from the total number of credits played), and gave $2.54 billion to aid in education during fiscal year 2008-2009; and

Whereas, Since 2009, lottery revenue has increased - according to the New York Lottery’s year-end report for fiscal year 2014-2015, the Lottery took in $9.16 billion in lottery sales and video gaming net win, and gave $3.11 billion to aid in education; and

Whereas, S. 6645A introduced by State Senator Carl Marcellino and pending in committee in the New York State Senate, and a similar bill, A.9213A, introduced by Assembly Member Luis Sepúlveda and pending in committee in the New York State Assembly, would re-establish the Barbara Clark Leaders of Tomorrow Scholarship funded by the New York Lottery;

Whereas, Under the New York Constitution, a core purpose of the Lottery is to fund and support education; and

Whereas, Families in New York City and across the state continue to struggle to meet the rising costs of postsecondary education; and

Whereas, It appears that the New York Lottery’s revenue is now higher than it was in the last year that the Lottery funded the Leaders of Tomorrow scholarships and so the Lottery should once again serve its core purpose of investing in New York Education by facilitating secondary education for New York’s most promising graduates; now, therefore, be it

Resolved, That the Council of the City of New York calls upon the New York State Legislature to pass, and the Governor to sign, legislation that would reinstate the Barbara Clark Leaders of Tomorrow scholarships funded by the New York Lottery.

LS #7297

4/15/16

Kc/jp