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State of California May 19, 2009 Election
Proposition 1C
Lottery Modernization Act
State of California

Legislative Constitutional Amendment and Statute - Majority Approval Required

Fail: 1,705,702 / 35.7% Yes votes ...... 3,077,940 / 64.3% No votes

See Also: Index of all Propositions

Results as of Jun 12 4:29pm, 100.0% of Precincts Reporting (17393/17393)
Information shown below: Summary | Fiscal Impact | Yes/No Meaning | Arguments |
Summary Prepared by the Attorney General:
  • Allows the state lottery to be modernized to improve its performance with increased payouts, improved marketing, and effective management.
  • Requires the state to maintain ownership of the lottery and authorizes additional accountability measures.
  • Protects funding levels for schools currently provided by lottery revenues.
  • Increased lottery revenues will be used to address current budget deficit and reduce the need for additional tax increases and cuts to state programs.

Fiscal Impact from the Legislative Analyst:

  • Impact on 2009-10 State Budget: Allows $5 billion of borrowing from future lottery profits to help balance the 2009-10 state budget.
  • Impact on Future State Budgets: Debt-service payments on the lottery borrowing and higher payments to education would likely make it more difficult to balance future state budgets. This impact would be lessened by potentially higher lottery profits. Additional lottery borrowing would be allowed.

Meaning of Voting Yes/No
A YES vote on this measure means:
The state would be allowed to borrow $5 billion from future lottery profits to help balance the 2009-10 state budget, as well as borrow additional funds later. The California Lottery would have greater flexibility to increase its sales and profits. Lottery payments to educational institutions would end, and the state General Fund would increase its payments to education to make up for the loss of these lottery funds.

A NO vote on this measure means:
The state would not be able to borrow from lottery profits to help balance the state budget. The lottery would continue to operate as it does today, with profits dedicated to education.

Arguments Submitted to the Secretary of State

Summary of Arguments FOR Proposition 1C:
Yes on Prop. 1C MODERNIZES OUR LOTTERY and generates up to $5 billion in new revenue-- without raising taxes. Prop. 1C guarantees schools get the same level of lottery funding as they do now. Prop. 1C will help prevent more tax hikes and deeper cuts to public safety and schools.

Summary of Arguments AGAINST Proposition 1C:
A no vote on this measure will leave the state lottery as the voters intended when they voted for Proposition 37 in 1984. Funding to education by the state lottery will not decrease or change in any way.
Contact FOR Proposition 1C:
Budget Reform Now (866) 978-3444

Contact AGAINST Proposition 1C:
Senator Bob Huff 1017 L Street #401 Sacramento, CA 95814 (909) 396-6474

  For General Information on California State Budget Issues and All May 19th Propositions

Go to California State Propositions Page

More Information on 1C
Official Information

Secretary of State

Campaign Finance Data

Secretary of State

Nonpartisan Information

League of Women Voters

  • In Depth explanations of the measure, its provisions, fiscal effects, main arguments for and against, as well as a list of supporters and opponents.
  • Easy Voter Guide - Provides easy-to-read summary of what the proposition would do, its effect on the state budget, and what people for and against say.
Center for Governmental Studies and Easy Voter Guide News and Analysis

KQED-FM Public Radio

Google News Search
  • News coverage of Proposition 1C - Note: This link to an external resource is offered strictly as a convenience for users interested in coverage by outside news organizations. The content is provided by organizations unaffiliated with Smart Voter and its partners, and no endorsement of any views expressed or guarantee of its accuracy is intended or implied.
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Created: July 31, 2009 13:14 PDT
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