THE QUESTION Should the distribution of State Lottery revenues to public education be changed so that half of the growth in revenues is set aside for textbooks and other instructional materials within public schools and community colleges? PROVISIONS Proposition 20 provides that, beginning with the 1998-99 fiscal year, and each fiscal year thereafter, one-half of the increase in state lottery revenues that are allocated to public education will be earmarked for instructional materials within the state's K-14 public schools. Instructional materials consist primarily of textbooks and other reading materials, but also include items such as computer software, arts and crafts supplies, and maps. Proposition 20 affects only the allocation of increased revenue for each year beyond the base year (1997-98) calculation. It does not affect the overall share or amount of lottery revenues allocated to benefit public education -- this share will continue to be at least 34 percent of the total state lottery revenues. The funds would be distributed on the basis of an equal amount per unit of average daily attendance. BACKGROUND Since 1985, California has operated a state lottery with revenues allocated as follows:
The public education distribution, based on student enrollment, goes to K-14 public schools (K-12 school districts and community colleges), the California State University, the University of California, Hastings College of the Law, and specific state departments that provide K-14 education programs. These funds can be used for any school expense other than for buying property, constructing facilities, or financing research. Through the California state budget, the state currently provides public schools with nearly $600 million each year that must be spent on instructional materials. This amounts to about $100 per student each year. For the fiscal year 1999-00, it is estimated that with Proposition 20, an additional $43.5 million would be made available specifically for the purchase of instructional materials through the state lottery funds. This amount is equal to one-half of the expected $87 million increase in lottery revenues between the 1997-98 base year and estimates for the 1999-00 fiscal year. The other half of the increase in lottery revenue would remain with the estimated $823.5 million sum to be distributed to public education without any further restriction or criteria regarding how it is used. FISCAL EFFECT The Legislative Analyst estimates that the earmarked amount for instructional materials in the near term would be in the tens of millions of dollars each year. For the fiscal year described above, the $43.5 million dedicated specifically for instructional materials of the total $867 million in lottery revenues distributed to public schools would amount to just over 5% of the total, leaving nearly 95% of it intact for the normal distribution to public education. These values would fluctuate each year, of course, depending upon changes in the level of overall lottery revenues. IMPACT OF YES OR NO VOTE A YES vote means that one-half of the growth in state lottery revenues allocated to public education above the amount for the 1997-98 base year will be dedicated to K-14 public schools for instructional materials purchases. A NO vote means that there will be no changes in distribution or criteria for the spending of lottery funds that are allocated to public education. SUPPORTERS SAY
OPPONENTS SAY
SUPPORTERS AND OPPONENTS Official ballot arguments in support are signed by Tony Cardenas, California State Assemblymember, 39th District; Nell Soto, California State Assemblymember, 61st District; Manny Hernandez, Trustee, Sacramento City Unified School District; Judith Cochrane, Teacher; and Carol S. Horn, Parent. Official ballot arguments in opposition are signed by George R. House Jr., California State Assemblymember, 25th District; Steve Baldwin, California State Assemblymember, 77th District; Wayne Johnson, President, California Teachers Association; Sandy Clifton, President, Association of California School Administrators; and Leslie DeMersseman, President, California School Boards Association. For more information: Supporters: Assemblyman Tony Cardenas, Schoolbooks For The Children, email schoolbooks4kids@aol.com Opponents: David Pegos, 916-319-2025
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