Dear County Offices of Education Chief Business Officials:
2009–10 FIRST QUARTER LOTTERY APPORTIONMENT
The State Controller’s Office (SCO) will distribute the 2009–10 first quarter lottery apportionment on December 30, 2009. The total apportioned to county offices of education, school districts, and charter schools is $224,448,155.10 or $33.74 ($33.743992146) 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 2007–08 and 2008–09 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.html. The Master Register lists the following information:
- Average Daily Attendance: The ADA is the actual annual ADA reported for the 2008-09 fiscal year times the statewide average excused absence factor of 1.04446. Pursuant to Government Code Section 8880.5(a)(2) the 2008–09 ADA includes ADA for classes for adults and regional occupational centers and programs that were reported for the 2007–08 fiscal year instead of ADA reported for these classes for the 2008–09 fiscal year. This ADA is the basis for the 2009–10 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 2009–10 consists of unrestricted (non-Proposition 20) lottery funding only. The SCO will distribute 2009–10 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 2008–09 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 2008–09 totaled $11,717,496.82. Of this amount, $0.68 per ADA ($0.683315438) is unrestricted lottery funding and $0.74 per ADA ($0.735484193) 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) 2008-09 ADA adjustment amount:
- Multiply the LEA’s 2007–08 annual ADA (as listed on the 2008–09 fourth quarter master register and adjusted by 1.04446) by the old 2008–09 rates of $109.750540768 for the unrestricted lottery apportionment and $13.521614836 for the Proposition 20 apportionment. This total is the amount apportioned during the 2008–09 fiscal year.
- Multiply the LEA’s 2008–09 annual ADA (adjusted for ADA for adults and regional occupational centers and programs and by 1.04446) by the new 2008–09 rates of $108.543568681 for the unrestricted lottery apportionment and $13.378703326 for the Proposition 20 apportionment. This total is the amount that the LEA should have received for the 2008–09 fiscal year (prior to any lottery revenue adjustments).
- The difference between the two calculations is the ADA adjustment amount for the 2008–09 fiscal year.
To compute a LEA’s 2007–08 ADA adjustment amount:
- Multiply the LEA’s 2007–08 annual ADA (as listed on the 2008–09 fourth quarter master register and adjusted by 1.04446) by the old 2007–08 rates of $113.81166013 for the unrestricted lottery apportionment and $16.477899014 for the Proposition 20 apportionment. This total is the amount apportioned for the 2007–08 fiscal year.
- Multiply the LEA’s revised (if no revision, use the same ADA as above) 2007–08 annual ADA (adjusted by 1.04446) by the new 2007–08 rates of $113.787846839 for the unrestricted lottery apportionment and $16.474189777 for the Proposition 20 apportionment. This total is the amount that the LEA should have received for the 2007–08 fiscal year.
- The difference between the two calculations is the ADA adjustment amount for the 2007–08 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, by phone at 916-327-0378 or by e-mail at firstname.lastname@example.org.
Scott Hannan, Director
School Fiscal Services Division