The purpose of this investigation was to analyze and to describe the effects of lottery revenue on the earmarked function of public elementary and secondary education in Michigan and New York. In order to update lottery information and provide the necessary background data for this study, the current status and performance of lotteries in the District of Columbia and the 22 states operating lotteries in 1986 are included in this research. An interrupted time-series design was employed to research the stability, reliability and yield of revenue from the state lotteries of Michigan and New York. Resultant data indicated that although in absolute dollars net lottery figures are impressive, they represent an unstable, low-yield portion of own source revenue in Michigan and New York. In addition, claims made by lottery proponents that net lottery revenue contributes to the expansion of the functional area of public elementary and secondary education were not supported by these data. / Ed. D.