Director of lottery quits post suddenly.

Byline: DAVID STEVES The Register-Guard

SALEM - State Lottery Director Chris Lyons abruptly retired over the weekend, something her staff learned only Monday.

Her departure follows nearly eight years of ever-rising profits for state programs from video gambling, but also comes only weeks after a Nov. 12 audit that concluded the lottery had wasted $750,000 on employee perks such as anniversary gifts, first-class travel, costly junkets and lavish retreats.

Lottery spokesman Lou Torres said he was unaware whether the critical audit played into Lyons' decision to retire, effective Sunday.

"Quite honestly the reasons she's giving are personal reasons," Torres said.

Like other lottery employees, he learned of the retirement when he read a message to lottery workers and the appointed commission that oversees the agency.

"Most employes were somewhat stunned or at least surprised," he said.

In the message, Lyons cited personal reasons, including a recent move to the Gresham area east of Portland, as well as the death of "a beloved family member."

Lyons, who had worked for the government 23 years, noted with pride the accomplishments of the lottery, which she directed since September 1995.

"Working together, we generated over $2.4 billion in profits for investment in vital state programs," she said. "When comparing 1995 to 2002, we have increased lottery transfers by $70 million per year."

Lyons didn't return a telephone call to her residence for comment.

Gov. John Kitzhaber, who appointed Lyons to her post, made no effort to talk her out of her decision, which she privately announced to him last Wednesday, spokesman Tom Towslee said.

"It was totally her decision to retire ... and we accept that decision," Towslee said.

Lyons' experience included serving as head of the Oregon Liquor Control Commission before running the lottery.

Kitzhaber will appoint an interim director until Gov.-elect Ted Kulongoski selects a permanent director after he enters office in January.

The next director's appointment will have to win confirmation from the Senate.

One member, Sen. Gary George, R-Newberg, said lawmakers have been growing impatient with an agency attitude that lottery officials shouldn't face questions about how they spend the portion of profits reserved for administration.

"We've had significant concerns for some time about accountability in that agency," George said. "The attitude I always got from them was, `We're rich. We're going to eat the caviar. We're going to ride the gravy train.' '

Kulongoski spokesman Scott Ballo said the incoming governor would take the audit's findings seriously when choosing a successor to run the lottery.

"The audit obviously raised some serious questions about the lottery as an agency, and this gives us a good opportunity to address those issues," he said.

The lottery generated $351 million for state programs in fiscal 2002, including education, economic development, parks, salmon restoration and gambling addiction treatment. Voters authorized the lottery in 1984.