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Letter Head: Jack O'Connell, State Superintendent of Public Instruction, California Department of Education

December 30, 2008

Dear County Offices of Education Chief Business Officials:

2008-09 FIRST QUARTER LOTTERY APPORTIONMENT

The State Controller’s Office (SCO) will distribute the 2008-09 first quarter lottery apportionment on December 30, 2008. The total apportioned to county offices of education, school districts, and charter schools is $203,050,491.62 or $30.52 ($30.516549756) per unit of average daily attendance (ADA) for the unrestricted lottery apportionment. The first quarter payment also includes prior-year adjustments due to the recalculation of 2006-07 and 2007-08 lottery apportionments based on final lottery revenue totals and actual ADA reports.

To view a copy of the Master Register that lists the ADA, apportionment, adjustments, and net amount actually paid (Remittance Advice) to each county office, school district, charter school, and community college district on a quarterly and year-to-date basis, visit the SCO’s Web site at http://www.sco.ca.gov/ard/payments/lottery/ [Note, the preceding Web address is no longer valid and has been replaced by http://www.sco.ca.gov/ard_payments_lottery.html] (Outside Source).

The Master Register lists the following information:

  • Average Daily Attendance: The ADA is the actual annual ADA reported for the 2007-08 fiscal year times the statewide average excused absence factor of 1.04446. This ADA is the basis for the 2008-09 first quarter apportionment. The Master Register lists charter school ADA separately from the chartering agency.
  • Apportioned Amount: The amount apportioned for the first quarter of 2008-09 consists of unrestricted (non-Proposition 20) lottery funding only. The SCO will distribute 2008-09 Proposition 20 funding when the total statewide lottery revenue for education has exceeded a specified level (typically not until the third or fourth quarter apportionment).
  • Revenue Adjustment Amount: This amount reflects additional 2007-08 lottery revenue that is available for distribution. Each year, the California State Lottery withholds a portion of its revenues until after the audit of its year-end financial statements. The additional revenue released for 2007-08 totaled $3,609,600.24. Of this amount, $0.21 per ADA ($0.212792555) is unrestricted lottery funding and $0.23 per ADA ($0.228935658) is restricted Proposition 20 lottery funding.
  • ADA Adjustment Amount: The SCO allocates lottery funding based upon prior year annual ADA until the actual annual ADA is available for the current year. Every December, the SCO recalculates lottery funding for the prior two fiscal years according to actual annual ADA (adjusted by the factor of 1.04446) and funding rates per ADA, which change along with statewide ADA totals.

To compute a local educational agency’s (LEA’s) 2007-08 ADA adjustment amount:

  1. Multiply the LEA’s 2006-07 annual ADA (adjusted by 1.04446 and listed on the 2007-08 fourth quarter master register) by the old 2007-08 rates of $114.806129640 for the unrestricted lottery apportionment and $16.387597829 for the Proposition 20 apportionment. This total is the amount apportioned during the 2007-08 fiscal year.
  2. Multiply the LEA’s 2007-08 annual ADA (adjusted by 1.04446) by the new 2007-08 rates of $113.598867575 for the unrestricted lottery apportionment and $16.248963356 for the Proposition 20 apportionment. This total is the amount that the LEA should have received for the 2007-08 fiscal year (prior to any lottery revenue adjustments).
  3. The difference between the two calculations is the ADA adjustment amount for the 2007-08 fiscal year.

To compute a LEA’s 2006-07 ADA adjustment amount:

  1. Multiply the LEA’s 2006-07 annual ADA (adjusted by 1.04446 and listed on the 2007-08 fourth quarter master register) by the old 2006-07 rates of $121.625832832 for the unrestricted lottery apportionment and $23.714975040 for the Proposition 20 apportionment. This total is the amount apportioned for the 2006-07 fiscal year.
  2. Multiply the LEA’s revised (if no revision, use the same ADA as above) 2006-07 annual ADA (adjusted by 1.04446) by the new 2006-07 rates of $121.613467489 for the unrestricted lottery apportionment and $23.712386651 for the Proposition 20 apportionment. This total is the amount that the LEA should have received for the 2006-07 fiscal year.
  3. The difference between the two calculations is the ADA adjustment amount for the 2006-07 fiscal year.
  • Accounts Receivable Balance: This amount represents the balance of any accounts receivable due to the State from a LEA.
  • Paid Amount: This total reflects the actual amount paid by the SCO, including the first quarter apportionment and any prior year adjustments.
  • Non-Proposition 20: The use of non-Proposition 20 lottery funds is unrestricted. However, pursuant to Government Code Section 8880.5, LEAs must use this lottery funding exclusively for the education of pupils and may not use this revenue for the 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. California Education Code Section 60010 defines instructional materials.

The Department requests that county superintendents of schools inform LEAs immediately of this apportionment. If you have any questions regarding the lottery apportionment, please contact Stel Cordano, Fiscal Consultant, at 916-327-0378 or by e-mail at scordano@cde.ca.gov.

Sincerely,

 

 

Scott Hannan, Director
School Fiscal Services Division

SH:ecc
Enclosures

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