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Lottery director asks Senate to replace 30% rule with fixed-dollar floor to grow scholarship revenue
Summary
Witnesses told the Senate Finance Committee SB309 would replace a 30% return requirement with a fixed-dollar floor ($43M, moving to $45M) for transfers to the lottery scholarship fund; supporters said it would allow higher-value scratcher tickets and more predictable scholarship revenue, while critics warned a flat floor could limit long-term growth and harm students.
Senate Bill 309 was presented to the Senate Finance Committee by Senator Gonzales. David Barton, CEO of the New Mexico Lottery Authority, said the bill would replace the current 30% return requirement with a mandated floor transfer to the scholarship fund of $43,000,000 for fiscal years 2028–2030 and $45,000,000 thereafter. Barton said the figure is based on a 10-year average of transfers and that a dollar-floor would allow the lottery to offer higher-value scratcher tickets and stabilize returns, arguing that neighboring states without statutory percentage mandates have had success growing revenues.
Rita Jones, chair of the Lottery board and a CPA, testified the board has internal and external audits and safeguards and that the bill includes a reversion provision that would restore the 30% requirement if the change underperforms. Supporters at the hearing included the New Mexico Council of University Presidents and a lobbyist for Playing for Education; opponents included Think New Mexico and a student testifier who said a flat floor risks capping growth and losing purchasing power over time. Committee members questioned the empirical basis of the claims and asked for more analysis; the sponsor and witnesses cited case studies from other states and a 10-year average used to calculate the floor.
After public testimony and extended questioning, the committee moved a 'do pass' recommendation for SB309 (roll-call exchanges are recorded in the transcript).
