Lottery chief facing scrutiny dies Tuesday

Chris Williams

Wednesday, Jan. 28, 2004 | 9:30 a.m.

MINNEAPOLIS -- The longtime director of the Minnesota State Lottery died on Tuesday, apparently by suicide, a day after meeting with legislative auditors examining the lottery's operations.

Cmdr. Scott Malinosky of the Washington County sheriff's office said it appeared that George R. Andersen, 53, killed himself, probably with a knife. A note was recovered, but Malinosky would not describe it.

Malinosky said authorities were called by Andersen's family about 7 a.m. after they found him outside their home in a residential area of Hugo, which is about 16 miles northeast of St. Paul.

Paramedics took Andersen to Regions Hospital in St. Paul, where he was declared dead.

Andersen was married with two grown children, according to a statement from the lottery.

Law enforcement officers and the Ramsey County medical examiner's office were investigating the death.

Andersen has been the director of the lottery since it began in April 1990. The position is unique in the amount of independence it allows. Directors can be removed from the job by the governor only in cases of wrongdoing, violating a strict conflict of interest policy or for failing to "perform adequately."

Gross revenue and efficiency of operations are factors used to determine adequate performance, according to state law.

A legislative auditor's report on the lottery is due late next month. Legislative Auditor James Nobles said in a statement that he met with Andersen on Monday to discuss the report.

"We had a cordial and productive meeting, and when I left I thought George had handled the meeting well and he seemed in good health," the statement said. Nobles declined to discuss the content of the audit or elaborate on the meeting.

Gov. Tim Pawlenty said he wasn't aware of any financial irregularities in the lottery office nor was his administration investigating Andersen.

The audit -- meant to look at how the lottery was run as opposed to a review of its accounting -- was requested by Sen. Ann Rest, DFL-New Hope. Rest said she spoke with Nobles about the review Tuesday. She wouldn't provide details, but said it would recommend ways "to improve the performance of the lottery."

Rest said she became concerned last year when the Minnesota Center for Environmental Advocacy studied the lottery and concluded that it costs far more to in Minnesota than in comparable states.

In response, lawmakers placed stricter limits on operating expenses, which resulted in 34 layoffs in October.

Andersen had said the report wasn't fair because every state lottery is run differently.

By law, much of the lottery's profits are directed toward conservation and environmental efforts.

In fiscal year 2002, for example, the lottery turned over $81.6 million to the state, of which $36 million went into the general fund and the rest was divided among natural resources, environmental and game and fish funds.

The money came from overall revenue of $378 million that year and the lottery spent $50 million -- 13 percent of revenue -- on its own operations.

Pawlenty called Andersen "a tireless advocate for Minnesota." In fiscal 2002, the lottery contributed more than $43 million to the state's environmental efforts, according to the lottery's website.