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LEAGUE OF WOMEN VOTERS OF CALIFORNIA EDUCATION FUND	Nonpartisan Pros & Cons of PROPOSITION 20 CALIFORNIA STATE LOTTERY. ALLOCATION FOR INSTRUCTIONAL MATERIALS.
	Legislative Initiative Amendment

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?

Since 1985, California has operated a state lottery with revenues allocated as follows:

· 50% is returned to the players in the form of prizes

· at least 34% is allocated to public education

· a maximum of 16% can be used to administer the lottery.

The public education portion goes to 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 lottery funds can be used for any school expense other than for buying property, constructing facilities, or financing research.

Public schools currently receive nearly $600 million in other funds from the state each year that must be spent on instructional materials. Instructional materials consist primarily of textbooks and other reading materials, but also include items such as computer software, arts and crafts supplies, and maps.

THE PROPOSAL

Proposition 20 would:

· provide that beginning with fiscal year 1998-99, one-half of the increase in state lottery revenues allocated to public education be earmarked for K-14 public school instructional materials

· not affect the share (34%) of lottery revenues benefiting overall public education

· provide that funds be distributed by an equal amount per unit of average daily attendance.

FISCAL EFFECT

The Legislative Analyst estimates that if Proposition 20 passes, $43.5 million in state lottery funds for the 1999-00 fiscal year would be earmarked to purchase K-14 instructional materials. Of the estimated $867 million in lottery money allocated to public education for that year, the amount dedicated to instructional materials would be just over 5% of the total. This would leave nearly 95% of the allocation intact for the normal distribution to public education. These values would fluctuate each year, depending upon changes in the level of overall lottery revenues.

SUPPORTERS SAY

· California's textbook funding sources are clearly insufficient when we currently rank 47^th out of 50 states in per pupil textbook spending.

· Proposition 20 would ensure continuous funding for textbooks and instructional materials within the current education lottery revenues.

OPPONENTS SAY

· The state budget provides ongoing funding for textbooks, and a new state program will provide $1 billion for textbooks over the next four years.

· Proposition 20 would restrict local school boards' ability to allocate lottery funds for local priorities and special projects.

For more information:

Supporters: (916) 319-2039, email schoolbooks4kids@aol.com
Opponents: (916) 319-2025, email david.pegos@asm.ca.gov

(Analysis prepared by the League of Women Voters of California Education Fund
for the March 7, 2000 Election.)

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