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

December 30, 2004

Dear County Offices of Education Chief Business Officials:

2004-05 FIRST QUARTER LOTTERY APPORTIONMENT

The State Controller's Office (SCO) will distribute the 2004-05 first quarter lottery apportionment on December 30, 2004. The total apportioned to kindergarten through grade twelve county offices of education, school districts, and charter schools is $241,057,036.42 or $36.36 ($36.363289127) 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 2002-03 and 2003-04 apportionments based on actual reports of ADA and final 2003-04 lottery revenue.  

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 2003-04 fiscal year times the statewide average excused absence factor of 1.04446. This ADA is the basis for the 2004-05 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 2004-05. The first quarter apportionment consists of unrestricted lottery funding only. Proposition 20 funding for 2004-05 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 2003-04 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 $3,493,436. Of this amount, $.21 per ADA ($.209176260) is unrestricted lottery funding and $.22 per ADA ($.224382511) 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 education agency's (LEA's) 2003-04 ADA adjustment:

  1. Multiply the LEA's 2002-03 annual ADA (adjusted by 1.04446) by the old 2003-04 rates of $114.940247676 for the unrestricted lottery apportionment and $17.267142486 for the Proposition 20 apportionment. This is the amount that was apportioned during the 2003-04 fiscal year.
  2. Multiply the LEA's 2003-04 annual ADA (as adjusted by 1.04446) by the new 2003-04 rates of $114.602328199 for the unrestricted lottery apportionment and $17.218640890 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.

To compute an LEA's 2002-03 ADA adjustment:

  1. Multiply the LEA's annual 2002-03 ADA (adjusted by 1.04446 and listed on the 2003-04 fourth quarter master register) by the old 2002-03 rates of $110.817321982 for the unrestricted lottery apportionment and $12.548297694 for the Proposition 20 apportionment. This is the amount that was apportioned for the 2002-03 fiscal year.
  2. Multiply the LEA's revised (if no revision, use the same ADA as above) 2002-03 annual ADA (as adjusted by 1.04446) by the new 2002-03 rates of $110.807819504 for the unrestricted lottery apportionment and $12.547143627 for Proposition 20. This is the adjusted amount that the LEA should receive for the 2002-03 fiscal year.
  3. The difference between the two calculations is the ADA adjustment for the 2002-03 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 -Prop 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.  
  • Prop 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 Janet Finley, Fiscal Consultant, Management Assistance Unit at (916) 323-5091 or by e-mail at jfinley@cde.ca.gov.

Sincerely,

 

Scott Hannan, Director
School Fiscal Services Division

 

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