The Georgia Lottery: selected summary financial information from inception (November 2, 1992) through fiscal year ended June 30, 2007

THE GEORGIA LOTTERY
Selected Summary Financial Information from
Inception (November 2, 1992) Through Fiscal Year Ended
June 30, 2007
Russell W. Hinton
State Auditor
Department of Audits and Accounts 270 Washington Street, S.W. - Suite 1-156
Atlanta, Georgia 30334

The Georgia Lottery
Table of Contents

Letter of Transmittal

1

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
State Government Division 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 14, 2008

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 of time from the approval and activation of the lottery on November 2, 1992 to the end of the fiscal year ended June 30, 2007. 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 information 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,
~ ~-~____h
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 , 2007. 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 reports and other data 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 $3.1 billion for fiscal year 2007. 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, Fantasy 5, Keno, Mega Millions, Millionaire Raffle and Win for Life.
NET LOTTERY TICKET SALES
(IN BILLIONS)
4.0
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

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) Department of Early Care and Learning (successor to the Office of School Readiness) University System of Georgia Student Finance Commission Department of Technical and Adult Education Office of the Governor
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, 2007, prizes amounted to 56.7% 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, 2007, the Lottery Corporation has transferred 31.1 %, over $9.3 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, 2007.
PRIZES AS A PERCENTAGE OF LOTTERY TICKETS SALES
60% 40% 20%
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
NET PROCEEDS AS A PERCENTAGE OF LOTTERY PROCEEDS
60% - , - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ,
40%

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

NET PROCEEDS TRANSFERRED TO STATE TREA.5URY (IN MILLIONS)
1000 ~ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ~ 800 600

200 0

L

.

a

_L..,-J_.._,_ _

_

____

_

_ L..,-J_.__,_ _

__

_ ..,......._L_J ________ .,......._.

.

.,.

.

.

,_.._,_____.,......._

__, _

__,

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Lottery tickets sales, together with interest income and fees, have exceeded $30.1 billion in just over fourteen years of lottery operations. The interest earned as reported on page 4 includes Georgia Lottery Corporation interest ($64.2 million to date), as well as , amounts earned by the Office of Treasury and Fiscal Services ($219.7 million to date) on Lottery Funds awaiting appropriation .
3

The Georgia Lottery
From November 2, 1992 to June 30, 2007

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

$ 29,765,237,000 283,955,600 61,301,000 4 ,755,000
$ 30,115,248,600

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 ofTechnical 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, 2007 Office ofTreasury and Fiscal Services Scholarship Shortfall Reserve Subaccount Shortfall Reserve Subaccount Unrestricted Reserve
Georgia Lottery Corporation - Retained Earnings
Total Utilization of Lottery Income

$ 16,869,484,000 3,722,371,360

$ 20,591,855,360

$ 3,170,552,292 875 ,928,024
3,990,569,439 555,547 ,247 272 ,355,538 2,000 ,000
$ 8,866,952,540

(222 ,366 ,516)

8,644 ,586,024

$ 29,236,441,384

$ 227,245,246 82,279 ,661
569,613,783 $ 879,138,690
0

879 ,138,690

$ 30 ,115,580,074

NOTE: The $331,474 difference between Total Income and Total Utilization of Lottery Income is due to late fees paid by the Georgia Lottery Corporation to the Office of Treasury and Fiscal Services for transfers made after the due date.

4

Utilization of Lottery Income

Of each dollar of total income on page 4, (which includes $219. 7 million generated by the Office of Treasury and Fiscal Services as interest income), 12.4 cents was used to pay operating expenses and 56.0 cents was paid out in prizes.

For every DOLLAR generated from all sources by The Georgia Lottery

PRIZES

OPERATING EXPENSES

56.0 cents

31.6 cents

12.4 cents

The remaining 31.6 cents was appropriated as follows:
12.9 cents for HOPE Financial Aid : 7.8 cents for HOPE Scholarships-Public 1.7 cents for HOPE Scholarships-Private 1.6 cents for HOPE Scholarships-Books 1.8 cents for HOPE Scholarships-Fees
10.0 cents for Pre-Kindergarten,
2.4 cents for Capital Outlay and
3.4 cents for all other Lottery funded programs.

HOPE Financial Aid 12.9 cents
Pre-Kindergarten 10.0 cents
I
Capital Outlay 2.4 cents
Other Lottery Funded Programs 3.4 cents

After providing for these appropriations 2.9 cents remained in the Office of Treasury and Fiscal Services at June 30, 2007 which was reserved for use at a later date.

Reserved in State Treasury and Lottery Retained Earnings ($879,138,690 as of June 30, 2007) 2.9 cents

In addition, a total of $17,391,086.85 of surplus Lottery Appropriations was remitted to the Office of Treasury and Fiscal Services as of June 30, 2007.

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.

Lottery Reserves in State Treasury at Fiscal Year End

Scholarship Shortfall Reserve Shortfall Reserve Unrestricted Reserve

1,000

800

!II

C:
.Q

600

400

~
200

0

?:,'>"Oj

Lottery Reserves in State Treas ury at Fiscal Year End

1994

1995

1996

1997

1998

1999

2000

Scholarship Shortfall Reserve

Statuto ri ly R e qui re d

$

Gove rn o r's Req u est

0 $ 0

2,307,934 $ 9 ,972,203 $ 25,224,063 $ 43,682 ,957 $ 65,706,349 $

0

67 ,746 ,383

52 ,494,523

3 4 ,0 3 5 ,6 2 9

12,012,237

88,766,861 0

Scholars h ip Total $

0 $ 2,307,934 $ 77,718,586 $ 77,718,586 $ 77,718,586 $ 77,718,586 $ 88,766,861

Shortfall Reserve

0

36 ,000,000

50 ,306,302

54 ,323 ,390

58,1 43,872

55, 507,200

64,670 ,500

Unrestricted Reserve

139,641 ,001

149,427 ,181

150,341 ,127

68 ,8 6 9 ,3 3 8

47,474,400

136,672,034

167,304,968

Total Reserves

$ 139,641,001 $ 187,735,115 $ 278,366,015 $ 200,911 ,314 $ 183,336,858 $ 269,897,820 $ 320,742,329

2001

2002

2003

2004

2005

2006

2007

Scholarship Shortfall Reserve

Statuto ril y Req u ired Gove rn o r's Request
Scholars hi p Total

$ 110,084,878 $ 134,004,202 $ 178,809,360 $ 188,758,757 $ 216,086,253 $ 223,220,798 $ 227,245,246

0

0

0

0

0

0

0

$ 110,084,878 $ 134,004, 202 $ 178,809,360 $ 188,758,757 $ 2 16 ,086,253 $ 223, 220,798 $ 227,245,246

Shortfall Rese rve

6 8 , 3 8 2 ,7 0 0

69, 167,200

7 2 ,6 2 0 ,2 0 0

75,155,700

7 8 ,269 ,2 0 0

8 0 ,2 0 8 ,3 0 0

8 2 ,2 7 9 ,6 6 1

Unrestricted Reserve

144,507,357

162,31 9 ,870

211 ,005,757

295,481 ,567

3 1 8,6 8 0 ,7 6 5

4 4 0 ,7 8 4 ,391

569 ,6 13 ,783

Total Reserves

$ 322,974,935 $ 365,491 ,272 $ 4 62,435,317 $ 559,364,024 $ 61 3,036,218 $ 744,21 3, 489 $ 879,138,690

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 2007. The charts on page 10, 11 and 12 provide information on the appropriations by fiscal year.
The top ten programmatic areas account for 94.9% of Lottery for Education appropriations. 1. Pre-Kindergarten - $3,002,798,065 - 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) - $2,362,514,757 - 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 - $519,165,159 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 - Fees - $536,534,585 - Helping Outstanding Pupils Educationally (HOPE) covers HOPE-approved mandatory fees which vary at each college .
6. HOPE Financial Aid - Books - $496,471,194 - Helping Outstanding Pupils Educationally (HOPE) grants provide a $100 per quarter/$150 per semester book allowance.
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 2007.

APPROPRIATION OF LOTTERY FUNDS BY BROAD CATEGORY

Pre-Ki ndergarte n II Sch olars hi ps Tech nolog y

600
500 ~ 400
0
300 200
100
0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

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 nonlottery 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) Department of Early Care and Learning (successor to the Office of School Readiness) University System of Georgia Student Finance Commission Department of Technical and Adult Education Office of the Governor 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 19.3 billion dollars in fiscal year 2007. The increased amount of education funding from nonlottery 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's 1994-2002, were fairly constant fiscal year's 2002-2005 and have steadily increased again since fiscal year 2006, education appropriations of lottery funds were fairly constant fiscal year's 1997-2004, then increased in fiscal year 2005 and have remained fairly constant since. 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 1997-2008, education appropriations grew at significantly higher percentage rates than those for non-educational purposes.

EDUCATION AND NON-EDUCATION

Non-Education

STATE FUND APPROPRIATIONS

Education-Lottery

----':::=============;' (Excluding Appropriations for Debt Service)
12 ~ - - - - _ _ : ~_ _:::____:__:____:__ _ _ _ _ _____:___ _ _

Education-Regular Appropriations

.84

11

.84

10

.77

9

8
:g 7 ~ 6
iii 5

.48 .4 7

4

3 2

1 0

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Annual appropriations for fiscal years 1993-2007 are based upon the amended appropriations act. Annual appropriations for fiscal year 2008 are based upon the fiscal year 2008 original appropriations act.

9

Object Classes to Which Lottery Funds Appropriated

I
DEPARTMENT OF EDUCATION
LOTTERY FOR EDUCATION APPROPRIATIONS

OBJECT CLASS TO WHICH APPROPRIATED

Algebra Classrooms Alternati-.e Programs Applied Technology Labs

Assisti-.e Technology Capital Outlay Computer Hardware/Software in Clas srooms

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

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

Fort Disco-.ery National Science Center Instructional Technology Leaming Logic Sites

Media Center and Library Equipment Model Technology Schools Nex t Generation Schools

Pos t 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

Fourteen Year TOTALS**

Fiscal Years 1994 through 2005

$

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 10,750,000
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 )

s $ 3,170,552,292

3,170,552,292 $

Fi scal Year 2006 0 $
0 $ 0 $

Fis cal Year 2007 0
0 0

DEPARTMENT OF EARLY CARE AND LEARNING
I
LOTTERY FOR EDUCATION APPROPRIATIONS

OBJECT CLASS TO WHICH APPROPRIATED
Pre-Kindergarten - Grants Pre-Kindergarten - Operations P re-Kindergarten - Personal Services

Fourteen Year TOTALS***

$

852,811 ,263 $

16,1 23,284

6,993,477

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

Fiscal Year 2006
282 ,510,143 $ 5,247 ,692 2,323,473

Fiscal Y ear 2007
301,131,254 5,966,11 4 2 ,501,019

Sub-Total Less: Lapsed Funds
Total - Early Care and Learning

$

875,928,024 $

0

$

875,928,024 $

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

290,081 ,308 $ 0
290,081,308 $

309,598,387 0
309,598,387

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. (**) In state fiscal years 2004 through 2007, the Department of Education received no appropriation of Lottery for Education Funds. (***) Beginning with fiscal year 2005 , Office of School Read iness was changed to the Department of Early Care and Learning and became a separate budget unit.
10

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

Fourteen Year TOTALS* . . *

Fiscal Years 1994 through 2005

$

20,469,980 $

1,500,000

16,639,611

20,469,980 $ 1,500,000
1 6, 639 , 611

Fiscal Year 2006
0 $

Fiscal Year 2007
0

Capital Outlay - GPTC Capital Outlay - Georgia College Capital Outlay - Georgia Military Coll ege

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

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

Chehaw Education Center Computer Labs - Vocational Instruction Distant Leaming - 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 ,2 2 6 , 311
140,000

Georgia Public Telecommunications Commission Georgia Research Alliance Internet Connection lnitiati\,e

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

15 , 186 ,0 0 0 100,996,689
13,173,422

Mercer Uni\,ersity 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 2,500,000

s

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 2007, 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
Eng ineer Scho lars hips G eo rg ia Military Co ll ege Sc holarships HOPE Financial A id
HOPE F inancia l A id - Books HOPE F inanc ia l A id - Fees HOPE F inanc ia l A id -T uition
HOPE Joint Enrollment HO PE Schol ars hips - Priv a te Colleges LEPO Scholarship
Opera ting Services - HO PE Adm inistration Persona l Services - HOPE Administrat ion Promise Scholarships
Prom ise II S cholarships Pub lic Sa fety Memorial Grant Teacher Scholarships Tu ition E qua li za ti on Gra nts
Sub-Tota l Less: Lapsed Funds
Tota l Georg ia S tud e n t F ina nce Comm ission

Fourteen Year

Fiscal Years

TOTA LS

1994 throu 9h 2005

s

s 6 ,745 ,500

8 ,6 11,963

39 ,4 13 ,797

s 5 ,225,5 00
6 ,757,009
39,413,797

496 ,471 ,1 94 536 ,534,585 2,323 ,100,960

379 ,434 ,783 387,084 ,287 1,676, 163 ,895

18 ,000 ,000 39 1,308 ,7 31
2 ,202 ,6 13

6,000,000 299 ,905 ,149
2 ,202,613

1 2 ,1 32 ,995 12,060 ,59 1 43 ,137 ,836

7,595 ,493 6 ,258 ,076 31,427,280

4 ,055 ,74 8 767 ,550
69 ,928,191 127 ,8 56.4 28
s s 4 ,092 ,328,682
po1 .159.243l

$

s 3 ,9 9 0,569 ,439

3,981 ,158 255 ,850
59 ,26 2 ,795 127 ,8 56 ,428
s 3,038,824 ,11 3 p 7 ,368,789l
s 3 ,021,455,324

Fisca l Year 2006
s 76 0,000
770,477
58 ,3 52 ,25 0 73 ,541 ,6 70 319,742,090
6 ,000,000 45 ,751 ,850
2,546,773 2,564 ,924 5 ,855,278
74 ,590 255,850 5,332,698
s 521 ,548,4 50
(40,209,544)
s 481 ,338,906

Fiscal Yea r 2007 760 ,000 1,084 ,477
58,6 84 ,161 75,908,628 327 ,1 94 ,9 75
6 ,000,000 45 ,6 51,732
1,990,729 3 ,237 ,591 5,855 ,278
0 255 ,8 5 0 5,332 ,698
531 ,9 56,119 (44,180,910)
487,775,209

DEPARTMENT OF TECHNICAL AND ADULT EDUCATION. LOTTERY FOR EDUCATION APPROPRIATIONS

OBJECT CLASS TO WHICH APPROPRIATED
Assisti1.e Technology Grant s Gapital Outlay Gapital Outlay - Adult Literacy

Fourteen Year TOTALS..

Fiscal Years 1994 through 2005

$

500,000 $

1,000,000

3 ,480 ,000

500,000 $ 1,000,000 3,480,000

Gapital Outlay - Computer Labs Gapital Outlay - Technical Institute Satellite Facilities Computer Hardware and Software

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

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

Computer Laboratories & S atellite Dishes - Adult Literaci Distant Leaming - Satellite Dishes Equipment - Area Schools

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

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

Equipment - State Schools Equipment - Techn ical Institutes Repairs and Renovations

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

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

Special Education Equipment
Sub-Tota l Less: Lapsed Funds

200,000

$

272,355,538 $

0

200,000
272,355,538 $ 0

Total -Technical and Adu lt Ed ucati on

$

272,355,538 $

272,355,538 $

Fiscal Year 2006 0 $
0 $ 0 0 $

Fiscal Year 2007 0
0 0 0

Beginning with the fiscal yea r 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 2007, the Department of Techn ical 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.
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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 a/so 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 a/so 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 a/so 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 three or four months prior to the beginning of the fiscal year. (See a/so 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 a/so 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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