June 30, 2005
Dear County Office and District Chief Business Officials and Charter School Administrators:
Lottery Revenue Projections
The following lottery revenue projections are offered for your information as you prepare year-end statements and update your budgets.
2004-05
Lottery sales for fiscal year 2004-05 are projected to reach $3.3 billion. Based on this, we estimate that the lottery will provide $119.11 per unit of average daily attendance (ADA) in unrestricted lottery revenues and $21.66 per ADA in Proposition 20 revenues for the 2004-05 fiscal year.
The total amount apportioned through the third quarter of 2004-05 is $102.94 per ADA in unrestricted revenues and $4.80 in Proposition 20 revenues. We recommend that local educational agencies accrue fourth quarter revenues at $16.17 per ADA for the unrestricted lottery apportionment and $16.86 per ADA for the Proposition 20 apportionment.
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. You can determine if you have amounts due by checking the third-quarter State Controller’s Office (SCO) Master Register. Amounts due are listed under the Accounts Receivable Balance column and are broken down by non-Proposition 20 and Proposition 20. If your agency does not receive a hard copy of the Master Register, it is also posted on the SCO’s Web site at http://www.sco.ca.gov/ard/payments/lottery.
2005-06
The Lottery Commission is projecting sales of $3.65 billion for fiscal year 2005-06. This level of sales would result in $1.281 billion for education. Based on these projections, we estimate that the lottery will provide $125 per ADA in unrestricted lottery revenues and $29 per ADA in Proposition 20 revenues for the 2005-06 fiscal year. We will monitor actual sales each quarter and advise you of any changes to the projection.
If you have any questions regarding lottery revenue projections or if we can be of further assistance, please contact Janet Finley, Fiscal Consultant, Management Assistance Unit, at (916) 323-5091 or by e-mail at jfinley@cde.ca.gov.
Sincerely,
Scott Hannan, Director
School Fiscal Services Division
1430 N Street
Sacramento, CA 95814