N.Y. Tax Law § 1601
This article is enacted to implement the amendment of section nine of article one of the state constitution, as approved by the vote of the people in the general election of November, nineteen hundred sixty-six, and to carry out the mandate thereof by establishing a lottery to be operated by the state, the net proceeds of which, for the fiscal year commencing April first, nineteen hundred seventy-six only, are to be applied exclusively for the purpose of providing aid to pupils with special educational needs and pupils with handicapping conditions. Thereafter, such net proceeds shall be applied for the purpose of providing supplemental aid to all school children pursuant to subdivision four of section ninety-two-c of the state finance law so as to hold harmless those programs from any reduction during the next fiscal year and so as to ensure that thereafter, subject to the provisions of paragraph (v) of subdivision three and subdivision five of section ninety-two-c of the state finance law and section four hundred ninety-five-a of article ten-C of the education law, all increases from the proceeds of the lottery shall be dedicated as increases in the funds available for the purpose of this act.
N.Y. Tax Law § 1601