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Administrator says Cape gets far less lottery aid than formula would suggest
Summary
Regional Administrator Michael Dutton told the assembly that by the statutory formula Cape Cod should get about 22% of locally generated lottery revenues back in local aid, but in practice the Cape receives roughly 5.2%; delegates discussed pursuing legislative study and potential responses including outreach and pressure tactics.
Regional Administrator Michael Dutton told the assembly that the formula used to allocate lottery proceeds was established in the 1970s and effectively frozen in the early 1990s, leaving Cape Cod and the islands underrepresented in local aid.
"In aggregate, The Cape, if all things were being equal, The Cape should be getting back 22% of what the residents pay in, to the lottery system. In reality, we get about 5.2% back," Dutton said, describing a substantial differential between payments into the state's lottery system and return in unrestricted local aid. He told delegates state Sen. Dylan Fernandez proposed a study commission amendment in the budget to examine lottery allocations but the amendment did not make it into the final budget.
Delegates asked who decides allocation changes and whether Mass Municipal Association would engage. Dutton said the allocation formula is driven by state statute and historical equalized valuation and population measures; he characterized the current distribution as a “hodgepodge” and said the assembly will continue urging legislative study. One delegate floated the idea of creating political pressure by coordinated non-participation in the lottery but did not propose immediate action.
Dutton also noted other counties (e.g., Dukes County and Nantucket) receive similarly low returns and that commission staff will continue to update reports and data for the legislature if a study commission is created. He agreed to share final local aid report materials with the assembly.
