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State Lottery
Since the California State Lottery began in 1985, 50 percent of the sales revenue from
the lottery has been distributed as prizes. Less than the legal maximum of 16 percent
has been used to administer the games. Public education from kindergarten through
graduate school has received more than the required minimum 34 percent. The law
authorizing the lottery requires school districts to use lottery funds “exclusively for the
education of pupils and students and no funds shall be spent for acquisition of real
property, construction of facilities, financing of research, or any other non-instructional
purpose.”
Although the public still perceives the lottery as making a significant difference in the
funds available for education, the lottery actually provides about one percent of the total
kindergarten through grade twelve (K–12) funding. While the lottery revenue is
appreciated, it is a minor source that cannot be expected to provide major
improvements in K–12 education.
In March 2000, voters passed Proposition 20, known as the Cardenas Textbook Act of
2000. Proposition 20 provides that, beginning in fiscal year 1998-99, one-half of
statewide growth in lottery funds for education over the level set in the 1997-98 fiscal
year must be allocated to school districts and community colleges for the purchase of
instructional materials.
In the 2005-06 fiscal year, the amount apportioned to schools was $126.66 per pupil in
average daily attendance (ADA) for unrestricted lottery revenues and $28.96 per ADA
for Proposition 20 revenues. It is estimated that a total of $154 per ADA will be provided
to schools for 2006-07, of which $126 per ADA will be unrestricted and $28 per ADA will
be restricted for Proposition 20.
For further information on lottery funds for schools, contact Stephanie Lo, Education
Fiscal Assistant, School Fiscal Services Division, at (916) 323-6195 or by e-mail at
slo@cde.ca.gov. Additional information is also available on the Lottery Web site at
http://www.cde.ca.gov/fg/aa/lo.
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