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California Lottery (December 2007)

Provisions

 
In November 1984 voters approved the California State Lottery as a new source of revenue for California. A minimum of 34% of annual lottery sales revenues must be distributed to public schools, colleges, and universities. Public schools also receive unclaimed prize money, interest income or any administrative savings left over at the end of the sales year.

The money is to supplement, not supplant, regular support for public education. It must be used "exclusively for the education of pupils and students and no funds shall be spent for acquisition of real property, construction of facilities, financing of research or any other non-instructional purpose."

In March 2000 voters narrowly approved Proposition 20. It modifies the lottery law by requiring that half of any growth in lottery money above the 1997-98 base must be spent on instructional materials or textbooks.

Results

 
California lottery sales initially peaked in 1988-89, plummeted to a low in 1991-92, and grew slowly most years since then, reaching a new high in 2005-06. Annual amounts are unpredictable and represent only a small portion of a school district's budget. While educators welcome additional funds, the lottery is not, as some believe, a significant source of funds for education.



Data: California Budget Project, 2007

Locally elected school boards decide how to spend their lottery funds. In 2005-06, LEAs spent, on average, about 64% of their lottery income on salaries and benefits. Since the passage of Proposition 20, the amount that must be spent on textbooks or instructional materials (half of any growth) is steadily increasing.



Data: California Department of Education, Fact Book 2007 - Handbook of Education Information

K–12 Lottery Revenue Allocations

In amount per student based on average daily attendance (ADA)
Year Amount per student, unrestricted lottery revenues Amount per student, instructional materials Total Statewide K-12 Lottery Payments (in millions)
2006-07 $121.88 $22.75 $957
2005-06 $126.66 $28.96 $1,034
2004-05 $119.94 $22.47 $948
2003-04 $114.79 $17.44 $873
2002-03 $110.81 $12.55 $806
2001-02 $116.13 $15.24 $854
2000-01 $123.41 $18.07 $902
1999-00 $115.45 $7.53 $769
1998-99 $114.69 $4.50 $728
1997-98 $113.67 - $675
1996-97 $105.10 - $611
1995-96 $120.71 - $691
1994-95 $115.83 - $643
1993-94 $101.63 - $556
1992-93 $92.51 - $496
1991-92 $76.55 - $401
1990-91 $128.64 - $646
1989-90 $154.47 - $783
1988-89 $176.08 - $844
1987-88 $138.78 - $647
1986-87 $89.68 - $411
1985-86 $125.67 - $555
Data: California Department of Education, Fact Book 2007 - Handbook of Education Information

Note: Figures not adjusted for inflation. For inflation-adjusted amounts, see the California Budget Project report, The California Lottery: A Small and Declining Share of School Funding (March 2007), at www.cpb.org.



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All rights reserved. Revised February 09, 2010.
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