AOC requests that the allocation to counties for the current biennium of video lottery
proceeds for badly needed economic development projects be adjusted based on the
February 2016 revenue forecast for 2015-17.
Background:
- Under ORS 461.547, counties receive 2.5% of net receipts (after payment of prizes) from
video lottery games. Ninety percent of these funds are distributed to each county in
proportion to gross receipts from video lottery games from each county. Ten percent
are distributed in equal amounts to each county. These funds are dedicated for
economic development projects. - Beginning in the 2005-07 biennium, 50% of the costs of the Governor’s Office
administration of the Economic Revitalization Team (ERT)/Regional Solutions in the
state budget has been funded from this county share. - For the current 2015-17 biennium, the 2015 Legislature (HB 5029A) decided to allocate
a fixed dollar amount from this source to counties, rather than the percentage
allocation under ORS 461.547. The fixed amount is $39,083,827, which equals 2.5% of
video lottery proceeds projected in the May 2015 revenue forecast, minus one-half of
funding for Regional Solutions. - For allocation/budget adjustments in the 2016 session, the Legislature will use the
February 2016 forecast, released on February 10. - Based on the February 2016 forecast of video lottery sales for the current biennium,
2.5% of net sales minus one-half of funding of administration of Regional Solutions
($42,865,957 minus $2,029,209), equals $40,836,748. The adjustment to the allocation
for counties would be plus $1,752,921. - The need for economic development resources, particularly in rural counties, is well
documented. AOC requests that the state 2015-17 allocation to counties be adjusted
based on the February 2016 revenue forecast to $40,836,748 for this current
biennium.
For more information contact Gil Riddell, AOC policy director.