Ltr1-16: Lottery Revenue Projections
Dear County Superintendent of Schools:
2015–16 FOURTH QUARTER ACCRUAL
2016–17 LOTTERY REVENUE PROJECTIONS
The following lottery accrual and revenue projections are offered for your information as you prepare year-end statements and update your budgets.
2015–16 Fourth Quarter Accrual
Based on the California State Lottery Commission’s (CSLC) updated 2015–16 revenue projections, the California Department of Education (CDE) estimates lottery revenues to be $146.47 per unit of average daily attendance (ADA) for unrestricted revenues and $48.36 per ADA for Proposition 20 revenues. As of June 28, 2016, the total amount apportioned through the third quarter is $125.46 per ADA in unrestricted revenues and $26.25 per ADA in Proposition 20 revenues. The CDE recommends accruals for the fourth quarter to be $21.01 per ADA for the unrestricted lottery apportionment and $22.11 per ADA for the Proposition 20 apportionment.
If funds are owed to the state for prior year adjustments, these amounts will be offset against the apportionment and should be taken into consideration when booking the fourth quarter accrual. Amounts due are listed under the Accounts Receivable Balance column and are broken down by non-Proposition 20 and Proposition 20. The third quarter State Controller’s Office (SCO) Master Register on the SCO’s Web page at http://www.sco.ca.gov/ard_payments_lottery.html provides information on amounts due.
2016–17 Lottery Revenue Projections
Please note the change in the ADA used to calculate lottery funding beginning in 2015–16. Pursuant to Government Code Section 8880.5(a)(2) for fiscal years 2008–09 through 2014–15, the ADA used for purposes of calculating lottery included the ADA for Adult Education and Regional Occupational Centers and Programs (ROCPs) reported in 2007–08. Beginning in 2015–16, the Adult Education and ROCPs ADA will no longer be included for the purpose of calculating lottery funding which will impact every LEA’s funding.
The CSLC is projecting total sales of $6.42 billion for 2016–17 and estimates that this level of sales would result in $1.49 billion for education. Based on these projections, the CDE estimates that the lottery will provide $189 per ADA ($144 per ADA in unrestricted lottery revenues and $45 per ADA in Proposition 20 revenues) for 2016–17. We will monitor actual sales each quarter and advise you of any changes to the projection. The CDE requests that county superintendents of schools inform LEAs immediately of this information.
If you have any questions regarding this letter, please contact Janet Finley, Fiscal Consultant, by phone at 916-323-5091 or by e-mail at JFinley@cde.ca.gov
or Stel Cordano, Fiscal Consultant, by phone at 916-327-0378 or by e-mail at email@example.com [Note: the preceding contact information is no longer valid].
Peter Foggiato, Director
School Fiscal Services Division