Daily News from New York, New York • 119

DAILY NEWS, MONDAY, MARCH 5, 1973 20 lottery Board to JSomo: lots o'lmk, By STEVEN MATTHEWS Off-Track Betting- Corp. chief Howard Samuels' proposal to legalize the numbers game in New York City and hand the profits directly to local school boards or planning boards got a "lots o'luck" reaction from State Lottery Commission officials, who have been through similar distribution plans before. When the lottery was approved by the Legislature nearly six years ago, 55 of the total sales were mandated for educational purposes, and the vast majority of that was supposed to go directly to localities for their school budgets. Distribution Method Changed The funds were supposed to be alloted on a proportional basis: Those counties and cities that old the most tickets would get the most money. But estimates of the success of the lottery proved wildly optimistic and the complicated distribution formula proved unworkable, so during the Legis lature's 1971 session the lawmakers revised methods of handling lottery proceeds.

First they lowered the percentage of receipts that went to education -from 55 to 45 so prizes could be increased. Then they did away with the proportional distribution system altogether and directed that all profits go directly to the state's general fund ''earmarked for education." Since state aid for education comes from the general fund, and since the state education budget annually far exceeds lottery profits, it could still truthfully be said that lottery money went for education. That distinction however slight it might seem is important, because the amendment to the State Constitution that governs the lottery stipulates that funds earned by the game must go for the support of education. The State "Budget Bureau says there are two important reasons for pooling lottery money with general state funds: Segregation of lottery profits would add to the administrative costs of the program, leaving less money for education; it would be imprudent to fi nance any single program from the somewhat unpredictable revenues obtained from the lottery. However, although Budget Bureau spokesmen admit "there is no single program to which we can point as the recipient of the lottery revenues," they maintain "we can say that total state spending on education is higher than it would be in the absence of revenues from this source." $783 Million From Lottery To back up these contentions, they offer the following statistics: From 1967 to the present, the state education budget has increased by $2.6 billion; during the lifetime of the lottery, it has poured into state coffers, on successive years, $9 million, $28 million, $26 million, $30 million, $35 million and $55 million a total of $183 million.

Samuels' proposal for a legal numbers game suggests that after winnings and administrative costs are deducted, 15 of the total take would be left as profits. This money would be distributed to localities where the betting slips were purchased or to areas indicated by the bettor on the slip. The game would be run by OTB. The Gift Isn't Pint Sized arelik Tells Rivals: Talk This Over Let City Council President Sanford Garelik called yester day for "issue-oriented debates among the declared candidates for the Democratic mayoral nomination. He said the debates, which he hopes will be televised and begin near the end of the month, should be organized by the city Dem 1 ocratic Committee or a similar group.

Garelik said the debates would Federal Rules Cost City 4.5M A Year: Levitt The city is losing about $1.5 million annually in federal welfare aid because of restrictive familiarize voters with the can didates and the issues, adding: "We don't have a sophisticated public they don't know how their government works." Garelik also discounted 'the en-lorsement this wekend of Assemblyman Albert Blumenthal's nayoral bid by the reform New Democratic Coalition as "mean- ngless" and said the coalition 'represents a small faction in the Democratic Party." federal rulings on the way some checks are written. State Controller Arthur Levitt said in an audit he released yesterday. The seven-page study charged that the city is losing the money in cases involv Interviewed on WABC-TV's Eyewitness New Conference, jarelik estimated his personal let worth at about $100,000. He he would detail his personal riff mance next week. In other political development Rep.

Herman Badillo (D NEWS photo by Anthony Casal Arthur Levitt N.Y), upset by Blumenthal for .1 1 I tne coauuon enaorsement, saia ne has filed suit to challenge the city's new council distrits beause the boundaries "do not meet the Peggy Sammon, 21, of Queens talks with Christopher Regano as she donates blood for boy at Greater New York Blood Bank, 310 67th St. Christopher, a hemophiliac, reguires 900 pints of blood a year. Drive to obtain blood for boy began yesterday. Youngster's father is principal keeper in charge of Patty Cake, Bronx Zoo's baby gorilla. Bad Nevis tor Paper Hustlers Pestered by paper pirates, the Sanitation Department has stopped its special pickups of old newspapers in parts of Brooklyn and Staten it was learned yesterday.

simple requirement of good gov ernment." Bronx conservative leader Thomas Cronin said Rep. Mario ing so-called "two-party payments," or checks for payment to a client's landlord or utility company. Levitt said that, according to the way laws are writen, the federal government does not contribute its normal 50 of the cost of aid to the aged, blind and disabled in cases in which such restrictions are placed on checks. He estimated that between April 1970 and January 1972, New York lost $3.65 million, or B0r'r, of the money involoved, and said that such payments are currently running at about $9 million a year. Levitt recommended that city regulations be changed to allow greater use of checks issued on a "protective basis," in order to circumvent the two-part payment problem.

Under the suggestion, the checks could be issued to guardians, friends or interested yarties of the client who are granted power of attorney. The recycling program hadl been expanded several times since September 1971, when it started Biaggi (D-Bronx) is a front runner for Conservative Party endorsement and predicted that Biaggi could capture the mayoralty as the Conservative candidate in Rep. Edward Koch CD-Manhattan) repeated his belief that "anyone who engages in a crime of violence, who is convicted, must go to jail, even if he a drug addict." Koch called Mayor Lindsay "one of the worst mayors this city has ever had" but indicated he would support Lindsay if the mayor won the Democratic primary. Sam Roberts with biweekly service in and around Great Kills, S.I., but it departmental spokesman, explaining that paper will be removed with the other garbage but stored separately on special metal racks attached to some collection trucks. He said the department decided against the police effort that would have been required to catch the pirates who were making between $7 and $15 a ton on the paper booty put out, usually was scrapped last week because, among other things, rustlers were regularly beating the department to the bundles.

"We're going to be doing more recycling now, not less," said a every Thursday, for the department's dump trucks. The racks, already installed on about 95 trucks, work far better, the spokesman said, enabling sanitation men to recycle newspapers while going about their regular business of removing refuse. No Money In It It costs about $100 to outfit a truck with a double set of racks, capable of holding a total of 400 pounds of paper. The department eventually hopes to put them on about 800 trucks serving neighborhoods of moderate or low density. The department sells the old papers for $10 a ton in Brooklyn and between $7 and $14 a ton on Staten Island, but the profits don't meet the collection costs.

"There's no money in this for us," said the spokesman. "Al it does is keep the newspapers- out of the Fred Loetterla New Deal on Welfare Isle: They'd Call It FDR Because the name is too improbable for a $250 million glamour community, the directors of Welfare Island have opted to change it. They like the sound of Franklin Roosevelt Island. The Welfare Island Development Corp. plans to market apartments in the spring.

Says corporation Chairman Benno C. Schmidt: "Obviously, such efforts would be seriously Impeded by the continued use of the name Welfare Island." A new town in -town is under construction on the two-mile-long island. It will be home for 20,000 people of varying income. The first tenants' are due in the summer of .1974. The corporation had considered opting for Balckwell's Island, the 19th-century name, which preceded East Island, East River Island and Welfare Island.

But Schmidt said: "The members of the board feel that Franklin Roosevelt Island is the most appropriate and most attractive of the possible names. We believe that this name would facilitate the popularity and attractiveness of the island, both to those who live there and those who visit." Schmidt's comments were contained in a letter to City Councilman Carter Burden (D-L-Manhattan), who is being asked to submit enabling legislation. A memorial park is planned on the south end of the island in honor of the most recent New Yorker, before Richard M. Nixon, to be President. Owen MoriU.