Michigan Lottery tells appropriations subcommittee it remains 100% self-funded and a steady contributor to School Aid Fund

Joe Ferulic, introduced to the panel as the acting commissioner of the Michigan Lottery, told the House Appropriations Subcommittee on General Government that the executive recommendation for fiscal year 2027 maintains essentially the same funding levels the Lottery had in FY26.

"We are 100% self funded," Ferulic said. "We draw 0 general fund or taxpayer dollars, and we generate billions of dollars in revenue. All of our profits are returned to the School Aid Fund." He added that the Lottery deposited more than $1,000,000,000 to the School Aid Fund last year and has done so for seven consecutive years.

Ferulic outlined how Lottery revenues flow: contributions to the School Aid Fund; retailer commissions (he said Michigan has more than 10,400 retailers and paid more than $330,000,000 in commissions last year); and player prizes, which he said totaled more than $2,800,000,000 in claims last year. He framed the Lottery's responsible-gaming program as an industry-leading effort and described internal controls and outreach to retailers and players.

During follow-up questions, the chair asked how the Lottery complies with boilerplate language (section 21-206) that prioritizes in-person state workforce utilization. Ferulic said the agency's office occupancy is effectively 100 percent, noting roughly 200 full-time employees, including about 80 district sales representatives who work in the field, and multiple claims-center locations staffed during the week.

The presentation lasted only a few minutes and prompted no formal action. The subcommittee then moved to presentations from the Department of Treasury.