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Ltr1-11: First Quarter Lottery

Letter Head: Tom Torlakson, State Superintendent of Public Instruction, California Department of Education

January 6, 2012

Dear County Offices of Education Chief Business Officials:

2011-12 FIRST QUARTER LOTTERY APPORTIONMENT

The State Controller’s Office (SCO)  distributed the 2011-12 first quarter lottery apportionment on December 30, 2011. The total apportioned to county offices of education, school districts, and charter schools is $215,263,016.40 or $32.40 ($32.401597381) 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 2009-10 and 2010-11 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 2010-11 fiscal year times the statewide average excused absence factor of 1.04446. Pursuant to Government Code Section 8880.5(a)(2) the 2010-11 ADA includes ADA for classes for adults and regional occupational centers and programs that was reported for the 2007-08 fiscal year. This ADA is the basis for the 2011-12 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 2011-12 consists of unrestricted (non-Proposition 20) lottery funding only. The SCO will distribute 2011-12 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 2010-11 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 2010-11 totaled $4,999,186.26. Of this amount, $0.29 per ADA ($0.293736392) is unrestricted lottery funding and $0.32 per ADA ($0.315374925) 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) 2010-11 ADA adjustment amount:

  1. Multiply the LEA’s 2009-10 annual ADA (as listed on the 2010-11 fourth quarter master register and adjusted for ADA for adults and regional occupational centers and programs and by 1.04446) by the initial 2010-11 rates of $113.64363926 for the unrestricted lottery apportionment and $19.366729425 for the Proposition 20 apportionment. This total is the amount apportioned during the 2010-11 fiscal year.

  2. Multiply the LEA’s 2010-11 annual ADA (adjusted for ADA for adults and regional occupational centers and programs and by 1.04446) by the new 2010-11 rates of $113.99542692 for the unrestricted lottery apportionment and $19.404764952 for the Proposition 20 apportionment. This total is the amount that the LEA should have received for the 2010-11 fiscal year (prior to any lottery revenue adjustments).

  3. The difference between the two calculations is the ADA adjustment amount for the 2010-11 fiscal year.

To compute a LEA’s 2009-10 ADA adjustment amount:

  1. Multiply the LEA’s 2009-10 annual ADA as listed on the 2010-11 fourth quarter master register (adjusted for ADA for adults and regional occupational centers and programs and by 1.04446) by the initial 2009-10 rates of $111.750376259 for the unrestricted lottery apportionment and $16.993941349 for the Proposition 20 apportionment. This total is the amount apportioned for the 2009-10 fiscal year.

  2. Multiply the LEA’s revised (if no revision, use the same ADA as above) 2009-10 annual ADA (adjusted by 1.04446) by the new 2009-10 rates of $111.718824433 for the unrestricted lottery apportionment and $16.98857688 for the Proposition 20 apportionment. This total is the amount that the LEA should have received for the 2009-10 fiscal year.

  3. The difference between the two calculations is the ADA adjustment amount for the 2009-10 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

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