Ltr1-12: First Quarter Lottery
December 31, 2012
Dear County Offices of Education Chief Business Officials:
2012–13 FIRST QUARTER LOTTERY APPORTIONMENT
The State Controller’s Office (SCO) distributed the 2012–13 first quarter lottery apportionment on December 28, 2012. The total apportioned to county offices of education, school districts, and charter schools is $224,708,975.14 or $33.73 ($33.731837184) 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 2010–11 and 2011–12 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 2011–12 fiscal year times the statewide average excused absence factor of 1.04446. Pursuant to Government Code Section 8880.5(a)(2) the 2011–12 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 2012–13 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 2012–13 consists of unrestricted (non-Proposition 20) lottery funding only. The SCO will distribute 2012–13 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 2011–12 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 2011–12 totaled $4,715,121.74. Of this amount, $0.28 per ADA ($0.279031412) is unrestricted lottery funding and $0.30 per ADA ($0.300326176) 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) 2011–12 ADA adjustment amount:
- Multiply the LEA’s 2010–11 annual ADA (as listed on the 2011–12 fourth quarter master register and adjusted for ADA for adults and regional occupational centers and programs and by 1.04446) by the initial 2011–12 rates of $125.410201905 for the unrestricted lottery apportionment and $31.543667007 for the Proposition 20 apportionment. This total is the amount apportioned during the 2011–12 fiscal year.
- Multiply the LEA’s 2011–12 annual ADA (adjusted for ADA for adults and regional occupational centers and programs and by 1.04446) by the new 2011–12 rates of $126.210850383 for the unrestricted lottery apportionment and $31.8197472 for the Proposition 20 apportionment. This total is the amount that the LEA should have received for the 2011–12 fiscal year (prior to any lottery revenue adjustments).
- The difference between the two calculations is the ADA adjustment amount for the 2011–12 fiscal year.
To compute a LEA’s 2010–11 ADA adjustment amount:
- Multiply the LEA’s 2010–11 annual ADA as listed on the 2011–12 fourth quarter master register (adjusted for ADA for adults and regional occupational centers and programs and by 1.04446) by the initial 2010–11 rates of $114.289163312 for the unrestricted lottery apportionment and $19.72013987 for the Proposition 20 apportionment. This total is the amount apportioned for the 2010–11 fiscal year.
- Multiply the LEA’s revised (if no revision, use the same ADA as above) 2010–11 annual ADA (adjusted by 1.04446) by the new 2010–11 rates of $114.33917346 for the unrestricted lottery apportionment and $19.72940489 for the Proposition 20 apportionment. This total is the amount that the LEA should have received for the 2010–11 fiscal year.
- The difference between the two calculations is the ADA adjustment amount for the 2010–11 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
[Note: the preceding contact information is no longer valid and has been replaced by Victoria Pluim, Fiscal Analyst, Categorical Allocations and Management Assistance Office, by phone at 916-324-4533 or by e-mail at VPluim@cde.ca.gov.].
Scott Hannan, Director
School Fiscal Services Division