The largest buckets, which would take the largest funding cuts, are: thoroughbred racing purses and development funds, which would be cut by about $6 million, payments to racetrack counties and municipalities, about $4 million; state Debt Reduction fund, about $3.2 million; and greyhound racing purses and development funds, about $2.5 million.
Kiss said the funding cuts were also recommended by Wall Street bond rating agencies, which raised concerns about declining Lottery profits, since the state has a number of outstanding bond issues that are funded through Lottery revenue.
Freeing up the funds should help debt ratios for the Lottery, and avoid hurting the state's bond ratings, he said.
"The hope is this provides some additional cushion," Kiss said. "We're preserving and protecting the very positive bond rating we have."
With increased competition from casinos in Pennsylvania, Ohio and Maryland, the state Budget Office projects that overall Lottery revenues will drop 8.9 percent in the current budget year, and another 4.7 percent in the 2014-15 budget year.
Musgrave said about $473 million of state Lottery funds, which are appropriated by the Legislature, are not affected by the proposed 15 percent cuts.
That means Lottery funding for Promise scholarships, School Building Authority, Economic Development Authority, public schools, and Senior Services, among other programs, will not be cut under the governor's proposal.
The bill will go to Senate Judiciary Committee and Senate Finance Committee for further consideration.
Reach Phil Kabler at ph...@wvgazette.com or 304-348-1220.