What am I missing on the lottery?

I'm not old enough to remember the marketing campaign behind the Texas Lottery, but I can't count the number of times I've heard or read comments, such as this one:

"Is anybody listening, I said "Texas Lottery"! Texas Lottery was proposed back when Ann Richards was running for office it was said that the TEXAS LOTTERY was going to fund our SCHOOLS! Where is the money going? ? ? ? ? ?"

The lottery doesn't raise enough money to pay for public education. Profits provide about $1 billion of the $48 billion the state spends on education.
According to a May report on school finance from the Texas Taxpayers and Research Association:

"Funding for the system totaled $48 billion in the 2009-10 school year, which includes $15.8 billion in state funds (33%), $21.8 billion in local property taxes (45%), and $10.4 billion in federal funds (22%). The amount of federal funding is unusually high because of a one-time infusion of $5.9 billion in federal stimulus funds sent to Texas through the American Recovery and Reinvestment Act (ARRA)."

And on the lottery:

"The Foundation School Fund is the mechanism through which most of the state revenue used to fund public education flows from the state to local districts. Expenditures from this fund totaled $11.3 billion in the 2009-10 school year. One-quarter of all “occupation taxes” such as the oil production tax, natural gas production tax, and the gas, water, and electric utility tax are constitutionally dedicated to public education and are deposited into the FSF (approximately $1 billion per year). Net profits from the state’s lottery (approximately $1 billion per year) are statutorily dedicated to public education and are also deposited into this fund. In addition, approximately $1.3 billion of local property taxes that are recaptured”1 from property wealthy school districts each year are deposited into this fund — labeled “Appropriated Receipts” — and treated as state revenue. Thesededicated revenues are not sufficient to meet the full cost of public education as determined by state formulas; therefore the Comptroller transfers the remaining required revenue to this fund from the General Revenue Fund."

To see the full report, visit http://bit.ly/9QiTsE.