Last year the Minnesota Lottery contributed approximately $30.6 million to the Trust Fund, but only $22.8 million was appropriated. Why?
The Trust Fund is a permanent fund that works similar to an endowment. The Minnesota Constitution provides that up to 5.5%* of the market value of the fund can be utilized for projects each year. Proceeds from the Minnesota Lottery are contributed to the Trust Fund’s principal balance and are then invested in a combination of stocks and bonds to further grow the market value of the fund. As the market value increases over time, the dollar amount made available for projects through the 5.5% designation also increases. While the Lottery contribution is currently greater than the amount annually available for expenditure, eventually the amount available for expenditure will be greater than the annual Lottery contribution.
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