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Audit: IL Lottery violated State Finance Act

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Illinois

* Like I wrote earlier, the Rauner administration has done all sorts of things to keep government functioning, including, apparently, prepaying dues before the new fiscal year began…

Eleven months ago, just as the state budget impasse was about to take hold, the Illinois Lottery violated state finance law by prepaying $20 million to take part in future multi-state lottery games, according to an Auditor General’s report.

Lottery officials made the prepayment because they were worried that a budget stalemate could prevent the state from participating in the Multi-State Lottery Association’s future Powerball and Mega Millions games, according to the audit.

The state’s Lottery Department disputes the audit’s findings and says no laws were broken.

The audit found that the Illinois Lottery made two $10 million payments on June 30, 2015 — the day before the budget fiasco began that has caused many state and not-for-profit agencies to lay off workers and deny services to thousands of families. Specifically, the payments failed to comply with a state finance law which says that appropriated money can be spent only in the year for which it was appropriated, according to the audit.

The full report is here.

posted by Rich Miller
Monday, May 23, 16 @ 2:03 pm

Comments

Setting aside for a second any personal or political feelings about the leaders involved it’s been remarkable how the staff at the various fiscal offices, the budget office, the comptroller’s office, the agency fiscal officers, etc. have kept the state operating as well as they have. I’m guessing we’ll see a lot more audit findings like this, we’ll find that in an effort to keep the state running proper procedures weren’t always followed. I would hope that the leaders who put their staff in these no-win situations are the ones held accountable rather than passing the buck to staffers.

Comment by The Captain Monday, May 23, 16 @ 2:12 pm
The Captain +1

Comment by Norseman Monday, May 23, 16 @ 2:25 pm
“Specifically, the payments failed to comply with a state finance law which says that appropriated money can be spent only in the year for which it was appropriated, according to the audit.” So what happens to all 2016 appropriations that do not get paid by the end of the 2016 fiscal year? And everyone who has not been appropriated for the services, rent etc. for the 2016 year is now out of luck?

Comment by Anonymous Monday, May 23, 16 @ 2:32 pm
So is our embattled Auditor doing the job he was selected to do? In spite of the legitimate questions that remain to be answered about his campaign finance disclosures it appears he is doing his job!

Comment by illini Monday, May 23, 16 @ 2:33 pm
OK the lottery continues to operate on the internet with though the legal authority expired months ago and now they drop $20 million with no legal authority Hmmmmmmm.
Good to see BigBrains don’t let those silly laws get in the way.

Comment by Annonin' Monday, May 23, 16 @ 2:34 pm
=== proper procedures weren’t always followed ===

that’s a kind way of saying that they violated state law and the state Constitution, which prohibits state spending without an appropriation by the Legislature.

We all recall of course that no money was appropriated for the Lottery, which is why lottery winners couldn’t be paid.

But Lottery folks just ignored the law and paid a contractor.

Sweet.

Comment by Juvenal Monday, May 23, 16 @ 2:34 pm
So if we have no budget by June 30th this year, Illinois will not be able to participate in the Power Ball or Mega Millions. We will miss out on a lot of revenue, if we can’t participate.

Comment by Say It Ain't So!!! Monday, May 23, 16 @ 2:47 pm
“Appropriated money can only be spent for the year it was appropriated”. IMO, this rule is rediculous. In so many cases it makes more sense to pay up front for multiple years than to hope for next years appropriation. Hope is not a plan.

Comment by Casual observer Monday, May 23, 16 @ 3:07 pm
Where was the Comptroller’s office on this payment? How did this get past them?

Comment by Tough Guy Monday, May 23, 16 @ 3:11 pm
The lottery folks should receive a tersly worded memo in a loud font for proactively keeping this revenue source active…. then close it out and go home

Comment by Ghost Monday, May 23, 16 @ 3:19 pm
==- Casual observer - Monday, May 23, 16 @ 3:07 pm:==

And the law is not a suggestion.

Comment by Precinct Captain Monday, May 23, 16 @ 3:47 pm
” I would hope that the leaders who put their staff in these no-win situations are the ones held accountable rather than passing the buck to staffers.”
The Captain, good luck with that. The leaders will never take the blame.

Comment by Mama Monday, May 23, 16 @ 4:11 pm
“The state’s Lottery Department disputes the audit’s findings and says no laws were broken.”

Read page 13 of the report. “The Department agrees and continue to review procedures to ensure it is in compliance with the Lottery Law.”

Folks generally do not dispute the AG or the Law

Comment by Real Monday, May 23, 16 @ 4:54 pm
Did Munger send the check?

Comment by Rabid Monday, May 23, 16 @ 6:33 pm
Could this have been preparation for what we are now experiencing? Ms. Madigan? At least it shouldn’t happen again in FY17. That will get some attention.

Comment by PENSIONS ARE OFF LIMITS Monday, May 23, 16 @ 7:17 pm
Mautino should resign. The lottery finding is a legitimate issue, but it becomes difficult to take seriously when it is issued by someone under federal investigation.

Comment by Anonymous Tuesday, May 24, 16 @ 8:06 am