The Georgia Lottery: selected summary financial information from inception (November 2, 1992) through fiscal year ended June 30, 2006

THE GEORGIA LOTTERY
Selected Summary Financial Information _ from
Inception (November 2, 1992) Through Fiscal Year Ended
June 30, 2006
Russell W. Hinton
State Auditor
Department of Audits and Accounts 270 Washington Street, S.W. - Suite 1-156
Atlanta, Georgia 30334

The Georgia Lottery

GEORGIA
L O TTl!.A V

Table of Contents

Letter of Transmittal

i

Introduction

1

The Georgia Lottery

3

Utilization of Lottery Income

5

Lottery Reserves

6

Top Ten Lottery Programmatic Areas

7

Appropriations for Education

Compared with Total Appropriations

9

Object Classes to Which Lottery Funds Appropriated

10

Glossary of Terms

13

This report issued by the :
State of Georgia Department of Audits and Accounts 270 Washington Street, S.W. - Suite 1-156
Atlanta, Georgia 30334 (404) 656 - 2180

DEPARTMENT OF AUDITS AND ACCOUNTS

270 Washington St. S.W. Suite 1-156

RUSSELL W. HINTON

Atlanta, Georgia 30334

STATE AUDITOR

(404) 656-2174

January 24, 2007

Honorable Sonny Perdue, Governor Members of the General Assembly
and Citizens of the State of Georgia

Ladies and Gentlemen:
This special report contains selected pertinent summary financial information about The Georgia Lottery. The report covers that period ohime from the approval and activation of the lottery on November 2, 1992 to the end of the fiscal year ended June 30, 2006. The information was obtained primarily from State of Georgia Comprehensive Annual Financial Reports and from other audited financial statements. The information has been presented in a manner which will provide insight relative to operation of the Lottery in Georgia. Summary financial infonnation presented herein reflects lottery revenues, appropriations and other sources/uses of funds in formats similar to financial statements.
We are knowledgeable about matters regarding financial accounting and reporting for governmental units and have taken care in preparing the information for presentation herein. The financial presentations and information presented herein do not represent the financial activity of any single organization of the State of Georgia nor is it intended to be presented in accordance with accounting principles generally accepted in the United States of America. However, we believe the information provided is both useful and relevant to gaining an understanding of the Lottery program as operated in the State of Georgia. This special report is presented for informational purposes only and we do not express an opinion or any other form of assurance on the information presented in this report.
This report is intended for use by the leadership of the State of Georgia. This restriction is not intended to limit the distribution of this report which is a matter of public record.

Respectfully submitted,
~~-

. ~

Russell W. Hinton, CPA, CGFM State Auditor

(This page intentionally left blank.)

Introduction
Purpose of Report The purpose of this report is to provide a financial overview of The Georgia Lottery from the time of approval by the voters in November 1992 to the end of the most recent fiscal year which occurred on June 30, 2006. This report is not a detailed study of the lottery, nor is it an audit or review of the lottery program. Preparation of Financial Information Financial activities associated with the lottery in Georgia take place in eight organizations of the State. The summary financial information presented in this report was obtained from the State of Georgia Comprehensive Annual Financial Report and related reports of the individual state organizations. Lottery financial information was extracted from these reports and is summarized and accumulated in this report. Proper Use of Lottery Funds Defined "Georgia Lottery for Education Act" states that: "net proceeds of lottery games...shall be used to support improvements and enhancements for educational purposes and that such net proceeds shall be used to supplement, not supplant, existing resources for educational purposes and programs." Lottery Ticket Sales The first lottery tickets were offered for sale on June 29, 1993 and in the final two days of the 1993 state fiscal year, net ticket sales were $18.6 million. With the exception of fiscal year 2001, net ticket sales have increased steadily and reached in excess of 2.9 billion for fiscal year 2006. The Georgia Lottery Corporation offers a variety of lottery tickets for sale which include instant (scratchoff) ticket sales and on-line ticket sales for Cash 3, Cash 4, Lotto South, Fantasy 5, Keno, Mega Millions and Win for Life.
tET WI I B<YTICKET ~
{IN 811.1.JCNS)
1994 1995 1996 1'Hl 1998 1999 2fXX> 2001 2002 2003 2004 2005 2006

The Georgia Lottery Defined
The term "The Georgia Lottery," as used in this report, includes all financial activity of the Georgia Lottery Corporation and financial activity of the Office of Treasury and Fiscal Services related to Lottery funds. Information on the financial activities of agencies receiving appropriations is not included in this review.
The Georgia Lottery Corporation was created specifically to perform the various aspects of operating and managing a state lottery. The Corporation was created by an act of the General Assembly of Georgia (Georgia Lottery for Education Act, 1992) and was given operating authority by the citizens of Georgia. Activities of the Corporation are directed by a seven member board of directors appointed by the Governor and confirmed by the Senate.
The State of Georgia Office of Treasury and Fiscal Services receives the net proceeds from The Georgia Lottery Corporation . As required by law, the Office of Treasury and Fiscal Services maintains the "Lottery for Education" account, as a separate account, into which net lottery proceeds are deposited and maintained. These net proceeds along with their earnings are transferred to the respective state agencies based on appropriations made by the Georgia General Assembly.
Agencies of the State of Georgia Receiving Lottery Appropriations The General Assembly may make appropriations from the Lottery for Education account to those state agencies having education responsibilities. The purposes for and amount of funding provided to these agencies is determined by the Governor and the General Assembly. The agencies are responsible for expending lottery funds in accordance with applicable provisions of the Georgia Lottery for Education Act. Agencies of the State which have received Lottery for Education appropriations are as follows:
Department of Education (includes Office of School Readiness prior to 2005) Student Finance Commission University System of Georgia Department of Technical and Adult Education Office of the Governor Department of Early Care and Learning
2

The Georgia Lottery
The Georgia Lottery for Education Act provides that as nearly as practical, at least 45% of the amount of money from the actual sale of lottery tickets shall be made available as prize money. Through June 30, 2006, prizes amounted to 56.01 % of lottery ticket sales net of tickets provided as prizes. The Georgia Lottery for Education Act also provides that, as nearly as practical, net proceeds shall equal at least 35% of the Georgia Lottery Corporation's lottery proceeds. Net proceeds are required to be transferred to the Office of Treasury and Fiscal Services quarterly. From inception to June 30, 2006, the Lottery Corporation has transferred 31.64%, over $8.4 billion , of lottery proceeds to the Office of Treasury and Fiscal Services. The following three charts depict the prizes (percentage) net proceeds (percentage) and net proceeds (dollars transferred) from inception through June 30, 2006.
PRIZES AS A PERCENTAGE OF LOTTERY TICKETS SALES

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

NET PROCEEDS AS A PERCENTAGE OF LOTTERY PROCEEDS 60% ~ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ,

40% 20%

0% 1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

tET PROCEEDS TRANSFERRED TO STATE TREASlRY
(inMLUONS)
1000 800
600 400 200

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Lottery tickets sales, together with interest income and fees, have exceeded $26.8 billion in just over thirteen years of lottery operations. The interest earned as reported on page 4 includes Georgia Lottery Corporation interest ($58.3 million to date) as well as amounts earned by the Office of Treasury and Fiscal Services ($181.3 million to date) on Lottery Funds awaiting appropriation.
3

The Georgia Lottery
From November 2, 1992 to June 30, 2006

Income Lottery Ticket Sales (Net ofTickets Provided as Prizes) Interest Income Fees (On-line and Retailer) Other Funds
Total Income

$ 26 ,586 ,834 ,000 239 ,636 ,007 56,251,000 4,755 ,000
$ 26,887,476,007

Utilization of Lottery Income
Georgia Lottery Corporation Expenses Prizes Operating Expenses
Lottery Appropriations (Net of Lapsed Funds) Department of Education Department of Early Care and Learning Student Finance Commission University System of Georgia Department of Technical and Adult Education Office of the Governor
Less : Appropriations Returned to Office of Treasury and Fiscal Services
Total Expenses and Appropriations
Lottery Funds Remaining at June 30, 2006 Office of Treasury and Fiscal Services Scholarship Shortfall Reserve Subaccount Shortfall Reserve Subaccount Unrestricted Reserve
Georgia Lottery Corporation - Retained Earn ings

$ 14,891,100,000 3,364 ,915 ,360

$ 18,256,015 ,360

$ 3,446,800 ,621 290,081 ,308
3,502 ,794 ,230 555,547 ,24 7 272,355,538 2,000 ,000
$ 8,069 ,578,944

(182,091,178)

7 ,887,487,766

$ 26 ,143,503 ,126

$ 223,220,798 80 ,208 ,300
440,784 ,391 $ 744 ,213,489
0

744 ,213,489

$ 26 ,887 ,716 ,615

4

Utilization of Lottery Income
Of each dollar of total income on page 4, (which includes $181 .3 million generated by the Office of Treasury and Fiscal Services as interest income), 12.5 cents was used to pay operating expenses and 55.4 cents was paid out in prizes.

For every DOLLAR generated from all sources by The Georgia Lottery

PRIZES
I we., e,tt'61J ri-5&

-2i9ii1)iyff

OPERATING EXPENSES

F 01_20_2,8,6.5.I
E

55.4 cents

29.3 cents

12.5 cents

The remaining 29.3 cents was appropriated as follows:
12.7 cents for HOPE Financial Aid : 7.6 cents for HOPE Scholarships-Public 1.8 cents for HOPE Scholarships-Private 1.6 cents for HOPE Scholarships-Books 1.7 cents for HOPE Scholarships-Fees
10.0 cents for Pre-Kindergarten,
2.6 cents for Capital Outlay and
4.0 cents for all other Lottery funded programs.

HOPE Financial Aid 12.7 cents
Pre-Kindergarten 10.0 cents
Capital Outlay 2.6 cents
Other Lottery Funded Programs 4.0 cents

After providing for these appropriations 2.8 cents remained in the Office of Treasury and Fiscal Services at June 30, 2006 which was reserved for use at a later date.

Reserved in State Treasury and Lottery Retained Earnings ($744 ,213,489 as of June 30, 2006) 2.8 cents

5

Lottery Reserves
The Georgia Lottery for Education Act requires the Office of Treasury and Fiscal Services to maintain two restricted reserve funds to provide contingency funding for the various lottery programs. These reserves can be drawn upon to meet any deficiencies should lottery revenues decrease to the extent that net proceeds are insufficient to meet amounts appropriated for the various lottery programs. These reserves are:
Scholarship Shortfall Reserve - An amount equal to 10% of the prior fiscal year's proceeds disbursed in the form of scholarships and grants is deposited into the Scholarship Shortfall Reserve. Contributions to the Reserve continue until the Reserve equals 50% of the prior year's disbursements for scholarships and grants.
Shortfall Reserve - Of the prior year's net lottery proceeds deposited into the Lottery for Education account, an amount equal to 10% is maintained as a Shortfall Reserve.
In addition, after providing for the restricted reserves shown above, any Unrestricted Reserve which remains in the Lottery for Education account at the Office of Treasury and Fiscal Services is available for appropriation by the General Assembly. The exhibits below depict the amounts in each type of reserve fund.

800

700

600

(/)

C: 500

-0 400

~

300 200

100

0

Lottery Reserves in State Treasury at Fiscal Year End

Scholarship Shortfall Reserve Shortfall Reserve Unrestricted Reserve

Lottery Reserves in State Treasury at Fiscal Year End

1994

1995

1996

1997

1998

1999

Scholarship Shortfall Reserve

Statutorily Required

$

0

Govern or' s Reques t

0

Scholars hip Total

$

0

Shortfall Reserve

0

Unrestricted Reserve

139,641 ,001

$ 2,307,934 0
$ 2,307,934 36, 000 ,000
149 ,427 ,181

$ 9,972,203 67,746 ,383
$ 77 ,718 ,586 50 ,306,302
150,341 ,127

$ 25,224,063 52 ,494 ,523
$ 77 ,718,586 54 ,323 ,390
68,869,338

$ 43 ,682 ,957 34 ,035,629
$ 77 ,718 ,586 5 8 ,1 4 3 ,8 7 2
47,474,400

$ 65 ,706,349 1 2 ,0 1 2 ,2 3 7
$ 77,718 ,586 55,507 ,200
136 ,672 ,034

Total Reserves

$ 139,641,001 $ 187,735,115 $ 278,366 ,015 $ 200 ,911 ,314 $ 183,336,858 $ 269 ,897,820

2000
$ 88 ,766,861 0
$ 88,766,861 64,670,500
167 , 304 ,968 $ 320,742 ,329

2001

Scholarship Shortfall Reserve Statutorily Required Governor's Request Scholars hip Total

$ 110,084,878 0
$ 110,084,878

Shortfall Reserve

68,382 ,700

Unrestricted Reserve

144 ,507 ,357

Total Reserves

$ 322,974,935

2002
$ 134,004,202 0
$ 134,004,202 69 , 167,200
162,319 ,870 $ 365,491 ,272

2003
$ 178,809 ,360 0
$ 178,809 ,360 72 ,620 ,200
211 ,005,757 $ 462,435,317

2004
$ 188,758,757 0
$ 188,758,757 7 5 ,1 5 5 ,700
295,481,567 $ 559,364,024

2005
$ 216,086,253 0
$ 216 ,086,253 78 ,269 ,200
318 ,680,765 $ 613 ,036,218

2006
$ 223,220,798 0
$ 223,220 ,798 80,208 ,300
440,784 ,391 $ 744 ,213,489

6

Top Ten Lottery Programmatic Areas
The following list describes the top 10 programmatic areas that have received appropriations from the Lottery for Education account. The totals represent appropriations from inception through fiscal year 2006. The charts on page 10, 11 and 12 provide information on the appropriations by fiscal year.
The top ten programmatic areas account for 94.2% of Lottery for Education appropriations.
1. Pre-Kindergarten - $2,693,199,678 - A voluntary program offered by school systems and private providers designed to give 4-year-olds developmentally appropriate programs to enable them to begin kindergarten ready to learn.
2. HOPE Financial Aid - Tuition (Public Institutions) - $2,035,319,782 - Helping Outstanding Pupils Educationally (HOPE) is a unique scholarship program that rewards students' efforts with financial assistance in degree, diploma, or certificate programs at any eligible Georgia public college, university or technical college .
3. Capital Outlay - $715,882,891 - Appropriations made to the Department of Education, the University System of Georgia and the Department of Technical and Adult Education for capital outlay projects.
4. HOPE Scholarships - Private Colleges/Tuition Equalization Grants - $473,513,427 Students at Private Colleges can qualify for a total award of $5,850 per academic year which consists of HOPE Scholarship of $4,500 and a Georgia Tuition Equalization Grant, currently paid from General Appropriations in the amount of $1,350.
5. HOPE Financial Aid - Books - $437,787,033 - Helping Outstanding Pupils Educationally (HOPE) grants provide a $100 per quarter/$150 per semester book allowance.
6. HOPE Financial Aid - Fees - $460,625,957 - Helping Outstanding Pupils Educationally (HOPE) covers HOPE-approved mandatory fees which vary at each college.
7. Computers in the Classroom - $264,340,525 - Grants to local school districts to be used to purchase computers for use by students in the classroom.
8. Equipment - $207,842,958 - Various object classes specifically designating equipment in the object class. The largest appropriations and their respective object classes are $123,840,056 for "Equipment - Technical Institutes" and $40,187,500 for "Media Center and Library Equipment."
7

9. Equipment, Technology & Construction Trust Fund - $186,226,311 -This fund, created by the General Assembly for the purpose of purchasing needed equipment at state supported colleges and universities under the Board of Regents, is funded by lottery appropriations.
10. Georgia Research Alliance - $125,196,689 - This partnership between the State's research universities, the business community and state government, exists to create economic development within the State of Georgia by developing and leveraging the research capabilities of the research universities within the state. Participating universities include four state supported institutions; the Georgia Institute of Technology, the University of Georgia, Georgia State University, the Medical College of Georgia, and two private institutions; Clark Atlanta University and Emory University. Appropriations in the budget object class are for Alliance authorized projects. Funds flow directly from the Regents to the designated state institution and do not flow through the Alliance.
Lottery Appropriations by Broad Categories Although the preceding list includes a number of different object classes, Lottery for Education appropriations are generally made in three broad categories; Pre-Kindergarten, Scholarships and Technology. The chart below reflects these three broad categories of appropriations for fiscal years 1994 through 2006.

APPROPRIATION OF LOTTERY FUNDS BY BROAD CATEGORY
600

Pre-Kindergarten Scholars hi ps Techno logy

500

1/)
C

400

.2

-I

~ 300

200

100

0
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

8

Appropriations for Education Compared with Total Appropriations

The Georgia Lottery for Education Act mandates that net proceeds (profits) from Georgia's lottery cannot be used to supplant funding for educational programs. This requirement ensures that lottery funds are not used to fund base level education programs previously funded with non-lottery funds.

For purposes of this report, appropriations for education purposes are defined as those non-lottery appropriations made to the following agencies of the State:

Department of Education (includes Office of School Readiness prior to 2005) Student Finance Commission University System of Georgia Department of Technical and Adult Education Office of the Governor Department of Early Care and Learning Teachers' Retirement System of Georgia Public School Employees Retirement System of Georgia

Total state appropriations have increased from almost 8 billion dollars in fiscal year 1993 to over 17.8 billion dollars in fiscal year 2006. The increased amount of education funding from non-lottery resources has taken place during a period when total state appropriations increased . As shown in the chart below, education appropriations of non-lottery funds steadily increased fiscal year 19942002 and have remained fairly constant since fiscal year 2002, Education appropriations of lottery funds have remained fairly constant since fiscal year 1997. These amounts do not include appropriations for debt service. As indicated in the chart, during the four fiscal periods from 1993 to 1996, education and non-education appropriations moved in a somewhat similar pattern. In fiscal years 1997-1999, education appropriations grew at significantly higher percentage rates than those for non-educational purposes.

12 11 10 -
987 - ti)
C
~ 6iii 5 -

EDUCATION AND NON-EDUCATION STATE FUND APPROPRIATIONS (Excluding Appropriations for Debt Service)

Education-Lottery Education-Regular Appropriations Non-Education
.84

== =~ = = == =~ == == == == == == == == == =-
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Annual appropriations for fiscal years 1994-2006 are based upon the amended appropriations act. Annual appropriations for fiscal year 2007 are based upon the fiscal year 2007 original appropriations act.

9

Object Classes to Which Lottery Funds Appropriated

DEPARTMENT OF EDUCATION LOTTERY FOR EDUCATION APPROPRIATIONS

OBJECT CLASS TO WHICH APPROPRIATED

Algebra Classrooms Alternative Programs Applied Technology Labs

Assistive Technology Capital Outlay Computer Hardware/Software in Classrooms

Computers in the Classroom Distant Learning - Hardware and Cabling Distant Learning - Satellite Dishes

Drug and Anti-Violence Education Educational Technology Centers Financial and Management Equipment

Fort Discovery National Science Center Instructional Technology Learning Logic Sites

Media Center and Library Equipment Model Technology Schools Ne xt Generation Schools

Post Secondary Options

Pre-Kindergarten for 4-year-olds

Pre-Kindergarten - Grants

*

Pre-Kindergarten - Operations

*

Pre-Kindergarten - Personal Services

*

Safe Schools Grant

Technology Installation

Sub-Total Less: Lapsed Funds

Total - Department of Education

Thirteen Year TOTALS

Fiscal Years 1994 throu9h 2004

$

753,000 $

15,175,400

22,260,000

753 ,000 $ 15 ,175,400 22 ,260 ,000

14,000,000 536,807,306
33,087 ,500

14,000 ,000 536 ,807 ,306
33 ,087 ,500

231,253,025 14,138,078 5,407,839

231 ,253 ,025 14 ,138 ,078 5,407 ,839

2,025,000 5,244,236 15,548,180

2,025 ,000 5,244 ,236 15,548 ,180

2,635,000 31,238,000
3,324,000

2,635 ,000 31,238,000
3,324 ,000

40,187,500 1 0 , 7 5 0 ,0 0 0
2,000,000

40 ,187 ,500 10 ,750 ,000
2,000 ,000

22,208,555 707,591,090 1,374,678 ,108

22 ,208 ,555 707 ,591 ,090 1,374 ,678,108

32,233,177 12,367,666 24,000,000

32,233 ,177 12 ,367 ,666 24 ,000 ,000

18,990,000

18,990 ,000

$ 3,177,902 ,660 $ !7,350 ,368!

3,1 77 ,902 ,660 $ ! 7,350 ,368!

$ 3,170,552,292 $

3,170,552 ,292 $

Fiscal Year 2005
0 $
0 $ 0 $

Fiscal Year 2006 0
0 0

DEPARTMENT OF EARLY CARE AND LEARNING LOTTERY FOR EDUCATION APPROPRIATIONS

OBJECT CL.ASS TO WHICH APPROPRIATED
Pre-Kindergarten - Grants Pre-Kindergarten - Operations Pre-Kindergarten - Personal Services

Thirteen Year TOTALS

Fiscal Years 1994 thr~h 2004

$

551,680,009 $

10,157,170

4,492,458

0 $

Fiscal Year 2005
269,169,866 $ 4,909,478 2,1 68,985

Rscal Year 2006
282,510,1 43 5,247,692 2,323,473

Sub-Total Less: Lapsed Funds
Total - Ear1y Care and Leaming

$

566,329,637 $

0

$

566,329,637 $

0 $ 0
0 $

276,248,329 $ 0
276,248,329 $

290,081 ,308 0
290,081,308

Beginning with the fiscal year 2006 Appropriation Act, the State changed from results-based budgeting focusing on object classes to a prioritized program-based budget methodology. However, for comparative purposes, the data in these tables is presented at the object class level.
(*) Appropriations made to Office of School Readiness, a Budget Unit of the Department of Education, fiscal years 2001-2004. Beginning with fiscal year 2005, Office of School Readiness was changed to the Department of Early Care and Learning and became a separate budget unit.

UNIVERSITY SYSTEM OF GEORGIA LOTTERY FOR EDUCATION APPROPRIATIONS

OBJECT CLASS TO WHICH APPROPRIATED
Capital Outlay Capital Outlay - Agricultural Experiment Stations Capital Outlay - Albany State College

Thirteen Year
TOTALS-

Fiscal Years 1994 throU!aJh 2004

$

20,469,980 $

1,500,000

16,639,611

20,469,980 $
1,500,000 16,639,611

Fiscal Year 2005
0 $

Fiscal Year 2006
0

Capital Outlay - GPTC Capital Outlay - Georgia College Capital Outlay - Georgia Military College

30,942,512 300,000
3,500,000

30,942,512 300,000
3,500,000

Chehaw Education Center Computer Labs - Vocational Instruction Distant Learning - Satellite Dishes

2,000,000 240,000 400,000

2 ,000,000 240,000 400,000

Educational Equipment Educational Technology Center Equipment

200,000 1,910,000 1,000,000

200,000 1,910,000 1,000,000

Equipment - GMC Equipment - GPTC Equipment - Public Libraries

438,000 3,300,000
800,000

438,000 3,300,000
800,000

Equipment - Vocational Instruction Equipment, Technology and Construction Trust Fund Georgia Military College -Computer Charges

2,000,000 186,226,311
140,000

2,000,000 186,226,311
140,000

Georgia Public Telecommunications Commission Georgia Research Alliance Internet Connection Initiative

15,186,000 100,996,689
13,173,422

15,186,000 100,996,689
13,173,422

Mercer University Grant - Equipment Per Diem, Fees and Contracts Research Consortium -Georgia Research Alliance

250,000 50,000
24,200,000

250,000 50 ,000
24 ,200,000

Special Funding Initiatives Student Information System Technology Equipment Initiative Zoo Atlanta Resources Center
Sub-Total Less: Lapsed Funds

103,605,500 20,000,000 3,579,222 2,500,000

103,605,500 20,000 ,000
3,579,222 2 ,500 ,00 0

$

555,547,247 $

555,547,247 $

0 $

0

0

0

0

0

Total - University System of Georgia

$

555,547,247 $

555,547,247 $

0 $

0

Beginning with the fiscal year 2006 Appropriation Act, the State changed from results-based budgeting focusing on object classes to a prioritized program-based budget methodology. However, for comparative purposes, the data in this table is presented at the object class level.
(**) In state fiscal years 2004 through 2006 , the University System of Georgia received no appropriation of Lottery for Education Funds.

11

STUDENT FINANCE COMMISSION

'

LOTTERY FOR EDUCATION APPROPRIATIONS

OBJECT CLASS TO WH ICH APPROPR IATED
Engineer Scholarships Georg ia Military Co lleg e Scholarsh ips HO PE Financial Aid
HO PE F inancia l A id - Books HO PE F inancia l Aid - Fees HOP E F inancia l Aid -Tu ition
HOP E Joint Enrollment HO PE S cho larsh ips - Private Co lleges LEP O Scholarsh ip
Operating Serv ices - HOP E Adm inistration Persona l Serv ices HO PE Adm inistra tion Prom ise Scholarsh ips
Prom ise II Sch olarships Pub lic Safety Memorial Grant Teacher Scho larships Tu ition E qualization Grants
Sub-To tal Less: Lapsed Funds
Tota l Georg ia S tuden t Finance Comm iss ion

Th irteen Year

F isca l Years

TO TALS

1994 through 2004

$

s 5,985 ,500

s 4 ,465 ,500

7 ,527 ,486

5 ,986 ,532

39 ,4 1 3,79 7

39,413 ,797

437 ,787 ,033 460 ,625 ,957 1,995 ,905 ,985

323 ,538 ,558 316 ,427 ,284 1,371,843 ,435

12 ,000 ,000 345 ,656 ,999
2 ,458,463

254 ,516,409 2,202 ,613

10 ,142 ,266 8 ,823 ,000
37 ,282 ,558

4,769 ,520 4 ,051 ,592 25,572 ,002

4 ,055 ,748 255 ,850
64 ,595,493 127 ,856 ,428
s 3,560 ,372 ,563 s
!57 ,578 ,333!

$

3 ,502 ,794 ,230 s

3,606 ,568
53,930 ,097 127 ,856 ,428
2,538 ,180 ,335 s p 7,368 ,789)
2 ,520 ,811 ,546 s

Fiscal Year 2005
760,000 s
77 0,4 77
55,896,225 70 ,657 ,003 304,320 ,460
6,000,000 45 ,388,740
2,825 ,973 2,206 ,484 5,855 ,278
374,590 255 ,850 5,332,698
500 ,643 ,778 s
0
500 ,643 ,778 s

F isca l Year 2006 760 ,000 770,477
58 ,352 ,250 73 ,541 ,670 319 ,742 ,090
6,000,000 45,751 ,850
255 ,850
2 ,546 ,773 2,564,924 5 ,855 ,278
74 ,590
5 ,332 ,698
521 ,548 ,450 ! 40 ,209 ,5 44)
481 ,338 ,906

DEPARTMENT OF TECHNICAL AND ADULT EDUCATION LOTTERY FOR EDUCATION APPROPRIATIONS

OBJECT CLASS TO WHICH APPROPRIATED
Ass isti ve T echn ology G rants Capital Outlay Cap ital Outlay - A dult Literacy

Thirteen Yea r TO TALS ...

Fi sca l Years 199 4 th ro u~h 200 4

$

500 ,000 $

1,000,000

3,480 ,000

50 0 ,000 $ 1 ,0 0 0 , 0 0 0 3,480,000

Cap ital Ou tl ay - Compu ter Labs Cap ital Ou tl ay - T ec hnica l Institute Sa tellite Fac ilities Computer Ha rdwa re and So ftwa re

2,544 ,000 98,699,482
2 ,818 ,000

2,544 ,000 98,699,482
2 ,8 18,000

Co m puter Laboratories & Sa te llite Dishes - Adu lt Lite racy Distant Lea rni ng - Sa te llite Dishes Equ ipm ent - Area Sc hools

4,040 ,000 439 ,000
2,000 ,000

4 ,040 ,000 439,000
2,000,000

Equipm ent - S tate Schoo ls Equipm ent - T ec hnica l In stitutes Re pa irs a nd Re nova ti ons

14,500 ,000 123,840,056
18,295 ,000

14 ,500,000 123,84 0 ,056
18,2 95 ,000

Specia l Ed uca tio n Equip m ent Sub-Total Less: Lapsed Funds
Total - Techn ica l and Adu lt Ed uca tion

200,000

s

s 272 ,355,538

0

$

s 2 7 2 , 3 5 5 , 5 3 8

200,000
s 272 ,355 ,538
0
s 272,355,538

Fiscal Yea r 2005 0 $
0 s
0
0 s

Fisca l Year 2006 0
0 0 0

Beginning with the fiscal year 2006 Appropriation Act , the State changed from results-based budgeting focusing on object classes to a prioritized program-based budget methodology. However, for comparative purposes, the data in these tables is presented at the object class level.
(***) In state fiscal years 2002 through 2006, the Department of Technical and Adult Education received no appropriation of Lottery for Education Funds.
In addition to the appropriations to the agencies shown on this and the previous pages, an appropriation of $2 ,000,000 was made for Technology Grants in the 1995 state fiscal year to the Office of the Governor.
12

Glossary of Terms
Administrative Expenses - Operating expenses such as salaries and benefits of employees, rents and utilities, professional fees , depreciation, and similar expenses.
Amended Appropriations Act - Legislation enacted by the General Assembly approximately midway through the fiscal year to increase/decrease funds which may be expended by state budget units. (See also Appropriations Act and Original Appropriations Act).
Appropriation - Approval by the General Assembly for a state organization to receive and expend state funds for specific purposes.
Appropriations Act - Legislation enacted by the General Assembly that lists amounts and purposes for which state funds (as well as other funds) may be expended by the various budget units (departments and agencies of the State). (See also Amended Appropriations Act and Original Appropriations Act) .
Budget Unit - A term used in appropriation acts of the General Assembly to denote the separate departments and agencies of state government to which appropriations are made.
Lottery for Education - The official name of the account maintained at the Office of Treasury and Fiscal Services to distinguish lottery funds from other state funds.
Lottery Proceeds - All revenue derived from the sale of lottery tickets plus all other money derived from lottery operations at the Georgia Lottery Corporation .
Lottery Ticket Sales - Gross lottery tickets sales less the value of any tickets provided as prizes.
Net Proceeds - Lottery proceeds less operating expenses of the Georgia Lottery Corporation. Net proceeds are required by law to be transferred from the Georgia Lottery Corporation to the Office of Treasury and Fiscal Services.
Object Class - A term used in appropriation acts of the General Assembly prior to program budgeting to denote categories or classifications of expenditures for which funds are appropriated to be expended . (See also Program -Based Budgeting) .
Operating Expenses - All costs of doing business, including, but not limited to, prizes, commissions , and other compensation paid to retailers, advertising and marketing costs, personnel costs, capital costs, and depreciation of property and equipment. For purposes of this report, operating expenses are presented sub-categorized as administrative expenses and retailing expenses.
Original Appropriations Act - Legislation enacted by the General Assembly approximately 3 or 4 months prior to the beginning of the fiscal year. (See also Appropriations Act and Amended Appropriations Act) .
Program-Based Budgeting - A budgetary control prescribed by the Appropriations Act of the General Assembly which appropriates expenditures related to specific funding sources within programs. This budgetary control was first implemented in fiscal year 2006. (See also Object Class).
Retailing Expenses - Those operating expenses associated with selling and marketing, such as retailer commissions and bonuses, contractor fees , advertising, marketing and other similar expenses.
State Treasury - A term used to refer to the Office of Treasury and Fiscal Services.
The Georgia Lottery - For purposes of this report, includes total financial activity of the Georgia Lottery Corporation, financial activity of the Office of Treasury and Fiscal Services related to Lottery funds, and financial activity of State agencies appropriated Lottery for Education funds for specific purposes.
Total Income - All income generated by the Georgia Lottery Corporation plus interest earned on the Lottery for Education account at the Office of Treasury and Fiscal Services.
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