Press Release from Ed Hatchett, Kentucky Auditor of Public Accounts Subject: Hatchett Says "STATE LOSES AS LOTTERY OVERPAYS WINNERS" Release Date: February 5, 2001 Audit online at: http://www.auditor.ky.gov/Public/Audit_Reports/Archive/1999&2000KyLotteryaudit.pdf	Commonwealth of Kentucky Auditor of Public Accounts 144 Capitol Annex Frankfort, KY 40601 Contact: Harold McKinney Legal Counsel Phone 502-573-0050 FAX 502-573-0067 APA.PressReleases@auditor.ky.gov
(Frankfort - February 5, 2001) According to State Auditor Ed Hatchett, the Kentucky Lottery Corporation opted to pass a $6 million windfall on to previous grand prize-winners rather than to the state's general fund. A sale of securities during a strong market in 1999 and 2000 resulted in almost $6 million more than was necessary to satisfy the lottery's obligation to 79 winners who opted to convert their 20-year payments to a one-time lump sum. "It is my job to remind the Kentucky Lottery that its first responsibility is to taxpayers," said Hatchett. "In light of the lottery's failure to meet its statutory goal for payments to the state, gifting $6 million away is difficult to justify. A predicted state revenue shortfall makes the Lottery's decision even more problematic." Hatchett's remarks were in conjunction with the release of the annual financial statement audit of the Kentucky Lottery Corporation.
	Edward B. Hatchett Jr. Auditor of Public Accounts 144 Capitol Annex Frankfort, KY 40601 WEB: www.auditor.ky.gov/