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Ltr1-09: Lottery Revenue Projections

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

July 6, 2009

Dear County Office Chief Business Officials:


The following lottery revenue projections are offered for your information as you prepare year-end statements and update your budgets.

2008-09 Fourth-Quarter Accrual

The total amount apportioned through the third-quarter of 2008-09 is $91.65 per unit of average daily attendance (ADA) in unrestricted revenues. We recommend that local educational agencies accrue fourth-quarter revenues at $17.68 per ADA for the unrestricted lottery apportionment and $12.68 per ADA for the Proposition 20 apportionment. A copy of the most recent 2008-09 fiscal year revenue projections are available on the California Department of Education’s Web site at

Please note that if you owe funds back to the state for prior-year ADA adjustments, these amounts will be offset against your apportionment and should be taken into consideration when booking your fourth-quarter accrual. Amounts due are listed under the Accounts Receivable Balance column and are broken down by non-Proposition 20 and Proposition 20. You can determine if you have amounts due by checking the third-quarter State Controller’s Office (SCO) Master Register on the SCO’s Web site at


The Lottery Commission is projecting sales of $2.96 billion for fiscal year 2009-10. This level of sales would result in $1.05 billion for education. Based on these projections, we estimate that the lottery will provide $111 per ADA in unrestricted lottery revenues and $14 per ADA in Proposition 20 revenues for the 2009-10 fiscal year. We will monitor actual sales each quarter and advise you of any changes to the projection.

The Department requests that county superintendents of schools inform local educational agencies immediately of this information. If you have any questions regarding your lottery apportionment, please contact Stel Cordano, Fiscal Consultant, Office of Principal Apportionment and Special Education at 916-327-0378 or


Scott Hannan, Director
School Fiscal Services Division

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