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Audit: California Lottery Officials Shortchanged Schools $69M

Los Angeles Times-

The management of the California Lottery was sharply criticized Tuesday by state officials, who released a scathing audit alleging that the agency shortchanged schools $69 million in profits over the last four years, and recommended that most of the money be repaid. Separately, the state controller has launched an investigation into a gift of 30,000 Scratchers tickets to “The Ellen DeGeneres Show,” first reported in The Los Angeles Times.

The audit released Tuesday said California schools have suffered as a result of problematic management and contracting at the lottery agency.

“The Lottery has not followed state law, which requires it to increase its funding for education in proportion to its increases in net revenue,” State Auditor Elaine Howle wrote in a letter to Gov. Gavin Newsom and the Legislature.

Howle said the California Lottery failed to provide $69 million in funding that should have gone to education in the last four years under the law.

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