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Letter Head: Jack O'Connell, State Superintendent of Public Instruction, Phone number 916-319-0800

December 28, 2005

Dear County Offices of Education Chief Business Officials:

2005-06 FIRST QUARTER LOTTERY APPORTIONMENT

The State Controller’s Office (SCO) will distribute the 2005-06 first quarter lottery apportionment on December 29, 2005. The total apportioned to kindergarten through grade twelve county offices of education, school districts, and charter schools is $257,315,737.85 or $38.72 ($38.717915860) per unit of average daily attendance (ADA) for the unrestricted lottery apportionment. The first quarter lottery payment also includes prior year adjustments for the recalculation of fiscal year 2003-04 and 2004-05 apportionments based on the final 2004-05 lottery revenue and the actual reports of ADA.

Enclosed for your information are the Remittance Advice and a copy of the Lottery Educational Apportionment System Master Register (Master Register).  The Master Register is also posted on the SCO’s Web site at www.sco.ca.gov/ard/payments/lottery/. The Master Register includes the following information:

  • Average Daily Attendance: The ADA listed is the actual annual ADA reported for the 2004-05 fiscal year times the statewide average excused absence factor of 1.04446. This ADA is the basis for the 2005-06 first quarter apportionment. Charter school ADA is listed separately from the chartering agency.   
  • Apportioned Amount: This is the amount apportioned for the first quarter of 2005-06.  The first quarter apportionment consists of unrestricted lottery funding only. Proposition 20 funding for 2005-06 will be distributed when the total statewide lottery revenue for education has exceeded a specified level (normally not until the third or fourth quarter apportionment).   
  • Revenue Adjustment Amount: This is additional 2004-05 lottery revenue that is now available for distribution. The California State Lottery withholds a portion of its revenues each year until after the audit of its year-end financial statements. The additional revenue released totaled $3,531,062.77.  Of this amount, $.21 per ADA ($.211717951) is unrestricted lottery funding and $.23 per ADA ($.226107891) is restricted for Proposition 20.
  • ADA Adjustment Amount: During each fiscal year, lottery funding is  allocated based upon prior year annual ADA until the actual ADA for that year is known. In December of each year, lottery funding is recalculated for the prior two fiscal years based on actual annual ADA reported for those years (as adjusted by the factor of 1.04446) and funding rates per ADA, which change as a result of the change in statewide ADA.

To compute a local educational agency’s (LEA’s) 2004-05 ADA adjustment:

  1. Multiply the LEA’s 2003-04 annual ADA (adjusted by 1.04446) by the old 2004-05 rates of $119.693841155 for the unrestricted lottery apportionment and $22.3383893 for the Proposition 20 apportionment. This is the amount that was apportioned during the 2004-05 fiscal year.

  2. Multiply the LEA’s 2004-05 annual ADA (as adjusted by 1.04446) by the new 2004-05 rates of $119.729006763 for the unrestricted lottery apportionment and $22.244731861 for Proposition 20. This is the adjusted amount that the LEA should receive for the 2004-05 fiscal year.

  3. The difference between the two calculations is the ADA adjustment for the 2004-05 fiscal year.

To compute an LEA’s 2003-04 ADA adjustment:

  1. Multiply the LEA’s annual 2003-04 ADA (adjusted by 1.04446 and listed on the 2004-05 fourth quarter master register) by the old 2003-04 rates of $114.811504459 for the unrestricted lottery apportionment and $17.443023401 for the Proposition 20 apportionment. This is the amount that was apportioned for the 2003-04 fiscal year.

  2. Multiply the LEA’s revised (if no revision, use the same ADA as above) 2003-04 annual ADA (as adjusted by 1.04446) by the new 2003-04 rates of $114.788039502 for the unrestricted lottery apportionment and $17.439199327 for Proposition 20. This is the adjusted amount that the LEA should receive for the 2003-04 fiscal year.

  3. The difference between the two calculations is the ADA adjustment for the
    2003-04 fiscal year.
  • Accounts Receivable Balance: This amount represents the balance of any accounts receivable due to the state from the LEA.
  • Paid Amount: This is the amount actually paid by the SCO. It includes the first quarter apportionment and prior year adjustments.
  • Non-Proposition 20: Non-Proposition 20 lottery funding is unrestricted, except that funds must be used for the education of pupils and may not be used for acquisition of real property, construction of facilities, financing of research, or other non-instructional purposes.

  • Proposition 20: Proposition 20 lottery funding is restricted for the purchase of instructional materials. Instructional materials are defined in Education Code Section 60010. 

If you have any questions regarding the lottery apportionment, please contact Carrie Strong-Thompson, Fiscal Assistant, Categorical Programs Unit, at (916) 324-4533 or by e-mail at cstrongthompson@cde.ca.gov.

Sincerely,



Scott Hannan, Director
School Fiscal Services Division

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