GI\ A%OO 
.R\ 
Lb5 
lq~~-(U, 
 
The Georgia Lottery 
 
Selected Summary Financial Information from 
Inception (November 2, 1992) Through Fiscal Year Ended June 30, 1996 
 
Claude L.Vickers State Auditor 
Department of Audits and Accounts 254 Washington Street, S.W. - Suite 214 
Atlanta, Georgia 30334 
 
 Table of Contents 
 
Letter of Transmittal 
 
. 
 
Introduction & Background 
 
1 
 
The Georgia Lottery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 4 
 
Utilization of Lottery Income 
 
6 
 
Top Six Lottery Appropriations 
 
7 
 
Education Appropriations as a Percentage of Total Appropriations .. 8 
 
Object Classes to which Funds Appropriated 
 
10 
 
Terms Used in this Report 
 
12 
 
 This report issued by the 
State of Georgia Department of Audits and Accounts 254 Washington Street, S.W. - Suite 214 
Atlanta, Georgia 30334 (404) 656 - 2180 
 
 CLAUDE L. VICKERS 
STATE AUDITOR (404) 656-2174 
 
DEPARTMENT OF AUDITS 
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 
December 30, 1996 
 
Honorable Zell Miller, 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 (as defined on page 2 of this report). 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, 1996. 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 such a manner to 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 comply with generalIy accepted accounting principles. 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, 
 
Claude L. Vickers State Auditor 
 
 (This page intentional[y left blank.) 
 
 Introduction & Bacl~ground 
 
Purpose of Report 
Constitutional Amendment Proposed 
Proper Use of Lottery funds Defined 
Voters Approve Lottery 
First Lottery Operations 
 
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 1996 fiscal year which occurred on June 30, 1996. This report is not a detailed study of the lottery nor is it an audit or review of the lottery program. 
The 1991 Session of the General Assembly of Georgia passed House Resolution Number 7 which proposed an amendment to the Constitution of the State of Georgia. This amendment, if approved by the citizens of Georgia, would provide operating authority for a State Lottery. The resolution was signed by the Governor on April 17, 1991 and the proposed amendment appeared on the general election ballot in November 1992. 
In the 1992 Session of the General Assembly, an act was passed which set forth the principles for operation of a lottery and defined the proper use of funds derived from the lottery. This act stated that 
"net proceeds of lottery games ... shall be used to support improvements and enhancements for educational purposes and that sudl net proceeds shall be used to supplement, not supplant, existing resources for educational purposes and programs." 
The act was signed by the Governor on May 7, 1992 and would become effective only upon voter approval of the Lottery amendment. 
On November 2, 1992, there were 1,146,349 citizens (52.17% of those voting) who voted for the amendment and 1,050,674 citizens (47.62%) who voted against the amendment. The approval of the amendment provided the authority for the Governor to start a lottery operation in Georgia. 
Immediately after approval of the amendment the Georgia Lottery Corporation was established, a Chief Executive Officer was hired and the Lottery began its operations. The first lottery tickets were offered for sale on June 29, 1993 and consisted of two instant games. In the two days of the 1993 state fiscal year, net tickets sales were L8.6 million dollars. In each of the three succeeding fiscal years, tickets sales have exceeded one billion 
 
1.6,.-- 
'"~ - 1.4 
U lU jC '" 
.~:.:g:= 1.2 
Yin 
~:. 1.0 
Gl 
Z 
0.8 
 
LOTTERY TICKET SALES BY STATE FISCAL YEAR 
----, 
 
93-94 
 
~-i-----J~ 
 
State Fiscal Years 
 
~ 
 
dollars and have increased each year. Also the number and diversity of lottery games has expanded. The scratch-off instant games continue to be popular with lottery players as they account for 34 percent of net tickets sales. On-line ticket games have been added and have proven to be more popular. A "Cash 3" daily drawing began in August 1993, a 
 
1 
 
 Introduction & Bacl<ground 
 
How Financial Information Aggregated 
"The Georgia Lottery" Defined 
 
weekly "Lotto Georgia" drawing began in September 1993, "Fantasy Five" drawings began in November 1994 and a weekly multi-state "Powerball" drawing began in June 1995. During the 1996 fiscal year "Quick Cash" drawings were added. (Note: Subsequent to June 30, 1996, the Georgia Lottery Corporation ended its affiliation with the multi-state Powerball lotto drawing and has affiliated with "The Big Game" multi-state lotto drawing.) 
Financial activities associated with the lottery in Georgia take place in numerous agencies of the State. The summary financial information presented in this report was obtained by extracting lottery related financial information from each state agency having financial activity associated with lottery funds. This financial information was then aggregated into this report which reflects all lottery financial activity. 
The term "The Georgia Lottery" as used in this report includes all financial activity of the Georgia Lottery Corporation, that financial activity of the Office of Treasury and Fiscal Services related to Lottery funds, and that financial activity of State agencies appropriated Lottery funds for specific purposes. The purposes and extent of funding for each purpose is determined by the Governor and the General Assembly of Georgia. The individual agencies involved in either the receipting, safeguarding and/or disbursing of Lottery funds for the State are as follows: 
Georgia Lottery Corporation This state 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 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. 
State of Georgia Office of Treasury and Fiscal Services (OTFS) This agency, often referred to in this report as the State Treasury, receives the net proceeds from The Georgia Lottery Corporation. OTFS, as required by law, maintains a separate account, the "Lottery for Education" 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 State agencies having educational responSibilities may receive appropriations of Lottery for Education funds made by the General Assembly and are responsible for expending lottery funds in accordance with applicable provisions of State law. Agencies of the State which have received Lottery for Education appropriations are as follows: Department of Education Georgia Student Finance Commission University System of Georgia Department of Technical and Adult Education Office of the Governor 
 
2 
 
 Sources of Information Modifications of Financial Data 
Definition of Terms Used in Report 
 
(Note: The 1996 General Assembry approved the "Education Reform Act of 1996" [Georgia Laws 1996, page 167] which created a department of state government known as 
the Office of School Readiness. The responsibility for receiving and administering Lottery 
for Education appropriations associated with the voluntary pre-kindergarten program was 
assigned this new department. These were previousry responsibilities of the Department of 
Education. ) 
 
Financial information was obtained primarily from State of Georgia Comprehensive Annual Financial Reports, from audit reports of the Georgia Lottery Corporation, the Office of Treasury and Fiscal Services, various state agencies mentioned in this report, and from appropriation acts enacted by the General Assembly of Georgia. 
 
The financial information in this summary report has been modified from that appearing in the State of Georgia Comprehensive Annual Financial Report (CAFR) in the following ways: 
 
1. 
 
The Georgia Lottery Corporation, a component unit of the State of Georgia, 
 
appears in the CAFR as a proprietary fund. In this report, certain financial 
 
information of the Georgia Lottery Corporation as included in the proprietary 
 
fund has been combined with financial information derived from governmental 
 
fund type financial statements of state agencies responsible for the administration 
 
of lottery funds. Although this presentation is not in accordance with generally 
 
accepted accounting principles, this presentation provides useful and relevant 
 
information about the Georgia Lottery. 
 
2. 
 
Appropriation categories have been modified to emphasize the agencies to which 
 
funds were appropriated by the Georgia General Assembly rather than functional 
 
expenditure categories as shown in the CAFR. 
 
3. 
 
In reporting the utilization of Lottery funds, appropriations made by the General 
 
Assembly have been reported with expenses which is a presentation not in 
 
accordance with generally accepted accounting principles. 
 
The definitions of certain terminology concerning lottery operations is helpful in understanding the financial information presented in this report. Concepts such as lottery ticket sales, lottery proceeds, net lottery proceeds, operating expenses, retailing expenses and administrative expenses are among these terms and are defined on page 12 of this report. 
 
3 
 
 The Georgia Lottery 
 
Lottery Ticket Sales Interest Earnings on Lottery Funds 
Prizes Paid 
Deposits into State Treasury 
Lottery Reserves Required by State Law 
 
Lottery tickets sales have exceeded four billion dollars in just over three years of lottery operations. Of that amount, 86 percent has either been paid back to lottery ticket purchasers or transferred to the State Treasury to be used for education purposes. 
The large sums of money raised by The Georgia Lottery which are not immediately expended are invested to the maximum extent possible and earn interest at three different points. First, interest earned by the Georgia Lottery Corporation ($16,307,000) on its available monies is considered part of net lottery proceeds and is transferred to the State Treasury. Second, monies deposited in the Lottery for Education account in the State Treasury awaiting appropriation and subsequent transfer to the designated agencies earns interest ($29,478,976) that is required by law to be kept and maintained as Lottery for Education funds. Third, funds drawn quarterly by the Georgia Student Finance Commission for the HOPE and other scholarship programs also earn interest ($1,724,834) while on deposit with the Commission and awaiting disbursement. This interest reduces funds drawn on appropriation allotments and therefore is not included in the interest income shown on page 5. 
Georgia Law provides that as nearly as practical, at least 45 percent of the amount of money from the actual sale of lottery tickets should be made available as prize money. Through June 30, 1996, prizes amounted to over 51 percent of lottery ticket sales (50.2% of total income). 
Georgia Law also provides that as nearly as practical, net proceeds shall equal at least 35 percent of the Georgia Lottery Corporation's lottery proceeds. Net proceeds are required to be transferred to the State Treasury quarterly. (A special provision of the law provides that for the first two full fiscal years of Lottery operations and any partial fiscal year of Lottery operations net proceeds may be 30 percent of lottery proceeds. This provision applied to fiscal years 1993, 1994, and 1995.) From inception to June 30, 1996, the Lottery Corporation transferred $1,406,296,914 to the State Treasury in net lottery proceeds. This amounts to just under 35 percent (34.92%) of lottery proceeds. 
Georgia Laws also established two reserves in the State Treasury 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 were insufficient to meet amounts appropriated for the various lottery programs. These reserves are: 
Shortfall Reserve - An amount equal to 10 percent of the total amount of net lottery proceeds deposited into the Lottery for Education account for the preceding year is maintained as a Shortfall Reserve subaccount. 
Scholarship Shortfall Reserve - An amount equal to 10 percent of the total amount of net lottery proceeds disbursed during the preceding fiscal year in the form of s.cholarships and grants for higher education is deposited into a Scholarship Shortfall Reserve subaccount until such amount equals 50 percent of such sum. 
 
4 
 
 The Georgia Lottery 
From November 2, 1992 to June 30, 1996 
 
Income Lottery Ticket Sales (Net of Instant Tickets Provided as Prizes) Interest Income Fees (On-line and Retailer) 
Total Income 
 
$ 4,000,520,000 45,785,976 9,819,000 
$ 4,056,124,976 
 
Utilization of Lottery Income 
Georgia Lottery Corporation Expenses Prizes Operating Expenses Retailing Expenses - Retailer Commissions, Fees, Ads, Marketing & Other Expenses Administrative Expenses - Salaries, Rents, Fees, Depreciation & Other Expenses 
Lottery Appropriations (Net of Lapsed Funds) Department of Education Georgia 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 
Funds Remaining at June 30, 1996 Georgia Lottery Corporation - Retained Earnings Office of Treasury and Fiscal Services Shortfall Reserve Subaccount Scholarship Shortfall Reserve Subaccount Unreserved Funds Available 
 
$ 2,043,183,000 
 
496,682,084 67,268,000 $ 2,607,133,084 
 
$ 578,779,349 266,387,113 214,488,123 108,657,136 2,000,000 
1,170,311,721 
 
(12,901,846) 
 
1,157,409,875 
 
$ 3,764,542,959 
 
$ 
 
13,216,000 
 
50,306,302 77,718,586 150,341,129 
 
291,582,017 
 
$ 4,056,124,976 
 
5 
 
 Utilization of Lottery Income 
 
Categories of Utilization of Lottery Income 
 
On page 5, income from the Georgia Lottery has been separated into three categories of utilization: Georgia Lottery Corporation Expenses, Lottery Appropriations, and Funds Remaining at June 30, 1996. In the chart below, these three categories are further broken down into seven categories as explained below: 
 
1. 
 
Georgia Lottery Corporation Expenses are shown as prizes, retailing expenses, 
 
and administrative expenses; 
 
2. 
 
Lottery Appropriations to the various agencies as reported on page 5 are shown 
 
on this chart by the program for which appropriations were made. In the chart 
 
below, Pre-Kindergarten for 4-year-olds and HOPE Financial Aid, the largest 
 
programs, are shown individually. All other lottery funded programs have been 
 
combined into one category; and 
 
3. 
 
Funds Remaining at June 30 1996 are shown as Unexpended Lottery Balances 
 
and Reserves which are amounts awaiting expensing or appropriation. 
 
Utilization of Total Income 
of The 
Georgia Lottery 
 
Georgia Lottery Corporation 
 
Retailing Administrative 
 
Expenses 
 
Expenses 
 
Pre-Kindergarten for 4-year-olds 
HOPE Financial Aid 
 
All Other Lottery Funded Programs 
November 2,1992 through June 30, 1996 
Using these categories, this pie chart graphically illustrates the manner in which the income of The Georgia Lottery has been utilized from inception to June 30, 1996. 
 
6 
 
 Top Six Lottery Appropriations 
 
Top Six Lottery Appropriations 
 
The following list identifies the top six programs, as defined by budget object classes, to which appropriations were made by the General Assembly from the Lottery for Education account in the 1994, 1995 and 1996 state fiscal years and the total amount appropriated to each program (budget object class): 
1. Pre-IGndergarten for 4-year-olds - $292,341,845 - 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 - $207,569,920 - HOPE, which stands for Helping Outstanding Pupils Educationally, is a unique scholarship program that rewards students' efforts with financial assistance in degree, diploma, or certificate programs at any eligible Georgia public or private college, university or technical institute. Grants generally cover the cost of tuition, mandatory fees and provide a book allowance. The first program included family income limitation requirements but current programs provide financial aid earned solely on academic accomplishment and achievement. 
3. Capital Outlay - $158,707,678 - Appropriations made to the Department of Education, the University System of Georgia, and the Department of Technical and Adult Education for capital outlay projects for local school districts, public colleges and universities, and state technical institutes, respectively. 
4. Georgia Research Alliance - $64,047,653 - This alliance, a partnership between the State's research universities, the business community and state government, was formed in 1990 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; Georgia Institute of Technology, University of Georgia, Georgia State University, and The Medical College of Georgia, and two private institutions; Clark Atlanta University and Emory University. Appropriations in the budget unit object class are for Alliance authorized projects. Funds flow directly from the Regents to the authorized institution and do not flow through the Alliance. 
5. Tuition Equalization Grants - $62,311,982 - These are grants of $1,500 per academic year made to Georgia residents who are full-time students at private colleges and universities within Georgia. (Grants to freshmen increased to $3,000 in state fiscal year 1997 and require a "B" average to maintain the grant.) These grants may be received in addition to HOPE Financial Aid. 
6. Equipment, Technology and Construction Trust Fund - $55,021,347 - This fund was created by the General Assembly and is funded by lottery appropriations which were Originally required to be matched by sponsored and/or private contributions for the purpose of purchasing needed equipment at state supported colleges and universities under the Board of Regents. The requirement that these funds be used to match sponsored and/or private contributions was deleted from the 1996 appropriations act. 
7 
 
 Education Appropriations as a Percentage of Total Appropriations 
 
Uses of Lottery Funds 
Education Purposes Defined 
Education Appropriations Constant 
 
Each state with a lottery operation has to decide how funds derived from lottery operations will be used. Net proceeds (profits) from Georgia's lottery, by state law, fund only education programs that do not supplant funding for previous education programs. The chart below reflects the percentage that appropriations for education purposes (excluding lottery funds and debt service payments) are of the total appropriation of state funds (excluding lottery funds and debt service payments) for the past 7 state fiscal years plus the current fiscal year (1997). This period covers 4 fiscal years (1990 - 1993) prior to lottery operations and 4 fiscal years (1994 - 1997) in which there were appropriations of Lottery for Education funds. 
 
For purposes of this report, appropriations for education purposes are defined as those appropriations made to the following agencies of the state: 
 
Department of Education University System of Georgia Department of Technical and Adult EdUCation Georgia Student Finance Commission Teachers' Retirement System of Georgia Public School Employees Retirement System of Georgia 
 
Based on the percentages used in Chart 1 below, education appropriations in the 1997 original appropriation act are at least at the same percentage of total appropriations as were education appropriations at the beginning of the decade. These percentages do not include Lottery for Education appropriations or appropriations for debt service. 
 
Chart 1 
 
PERCENTAGE OF STATE FUNDS 
 
APPROPRIATED FOR EDUCATION BY FISCAL YEAR 
 
(excluding Lottery Funds and Appropriations for Debt Service) 
 
60% r-------r----r-----,-----r-----,---~-___;----__, 
 
I 
 
57% 
 
I 
 
I 
 
I 
 
I 
 
I 
 
I 
 
-------~--------r--------I--------r--------I--------r-------- 
 
I 
 
I 
 
I 
 
I 
 
I 
 
I 
 
54% f-=-....::-~-~-:...:-:...------I~,----------------,-.I'_.-_-_-_-_-_-_--1JI.,.-_-_-_-_-_-_--;-~I'_-_-_-_---------l-~I'-_-._-_-_-_-_-_---l.:~I' --~ 
 
51% 
 
I 
 
I 
 
I 
 
I 
 
I 
 
I 
 
-------l--------~--------I--------f--------I--------f-------- 
 
I 
 
I 
 
I 
 
I 
 
! 48% -------~--------~-------~--------~----------------T--- ----- 
 
I 
 
I 
 
I 
 
I 
 
I 
 
45% 
 
89-90 
 
90-91 
 
91-92 
 
92-93 
 
93-94 
 
State Fiscal Years 
 
94-95 
 
95-96 
 
96 97 
-I 
 
I 
 
In Chart 1 above, percentages of appropriations for each year are from supplementalappropriation acts with the exception that percentages for the 96-97fiscal year are from the 1997 original appropriation act. 
 
8 
 
 Growth in State Appropriations 
Increase in Both Education and Non-Education Appropriations 
 
This fairly constant level of education funding (from non-lottery resources) has taken place during a period when total state appropriations increased dramatically. As indicated in Chart 2 below, state appropriations have increased from slightly over 7 billion dollars in fiscal years 1990, 1991, and 1992 to nearly II billion dollars in the 1997 fiscal year. 
 
Chart 2 
 
TOTALSTATEFUNDSAPPROPR~TED 
 
____ State Appropriations Incuding Lottery Funds 
 
BY FISCAL YEAR 
 
(Excluding Appropriations for Debt Service) 
 
- + - State Appropriations Excluding Lottery Funds 
 
12.0 r-~---=---;~---.,------~--~==;=====~=====;====~ 
 
1 
 
1 
 
I 
 
I 
 
I 
 
1 
 
I 
 
11.0 __ - 
 
- - _ "_ .4. 
~ 
 
--l __ - - 
 
1 
 
1 
 
I- 
 
_ 
 
"~ 
 
e-.'I: 10.0 
 
<I.e 
.....<1. 0 
<1:5 
 
"e.5 9.0 
::I- 
 
Ll. 
 
S 
 
~ 
 
8.0 
 
I I 
 
I I 
 
! 1 
 
I I 
 
I J 
 
.IJ....._--- _-- 
 
I 
 
I 
 
I 
 
I 
 
I 
 
__ ....".-- 
 
t 
 
I 
 
I 
 
I 
 
I 
 
_- 
 
I 
 
-------f---~---l-------~--------I--------I-~~----- 
 
1 
 
I 
 
I 
 
I 
 
,.,- 
 
1 
 
I 
 
I 
 
I 
 
I 
 
~" 
 
I 
 
I 
 
I 
 
I 
 
I 
 
I,.' 
 
I 
 
-------~------~~-------~--------!-~~-- --I--------~------- 
 
I 
 
I 
 
I 
 
,.' 
 
I 
 
I 
 
1 
 
I 
 
!,.' 
 
I 
 
! 
 
I 
 
I 
 
1 
 
,,..... 
 
I 
 
1 
 
I 
 
~ 
 
-------1-------1--------- 
 
I I 
 
IL 
 
_ 
 
I 
 
I 
 
+ - - - - - +I 
 
I 
...;1.,.., 
 
1 
 
I 
 
:: 
 
7.0 +-----+------+-----+-----+-------+-----......-----1 
 
89-90 
 
90-91 
 
9192 
 
92-93 
 
93-94 
 
94-95 
 
95-98 
 
98-97 
 
State Fiscal Years 
 
Although Lottery for Education funds aided this increase, when lottery funds are excluded, appropriations for education purposes as well as appropriations for non-education purposes both increased during this period as illustrated by Chart 3 below. 
 
Chart 3 
 
EDUCATION AND NON-EDUCATION 
 
____ Education Appropriations Including Lottery Funds 
 
STATE FUNDS APPROPRIATED 
 
- + - Education Appropriations Excluding Lottery Funds 
 
BY FISCAL YEAR 
 
(Excluding Appropriations for Debt Service) 
 
_ _ Non-Education Appropriations 
 
6.5 .---------,------r-----r-~====::;=======:;:=====::::::::;;:=====~ 
 
-: -:- ------: 6.0 - - - - - - - ~ - - - - - - - ~ - - - - - - - - - - - - - - 
 
1 
- - - - - - - ~ - - - - - - - ~ - - :.~ 
 
I 
 
I 
 
tIl 
 
_ . . _ .... 
 
il ~ 
 
I 
 
I 
 
I 
 
1 
 
I 
 
__ - I 
 
5.5 - - - - - - - : - - - - - - - ; - - - - - - - -:- - - - - - - -:- - - - - - -,~~~;-- - - - 1 - - - - 
 
<I. e< I.. e5 . 0 
 
- - - - - - - ~ - - - - - - - ~ - - - - - - - -:- - - - - - - -:- -,~,~'-'-. - ~ - 
 
- - - -1- - - - --- 
 
<1.0 
 
<1:$ 
~ ~ 4.5 
 
t 
_______ l 
 
JI 
 
I 
 
...... 
 
I 
 
, .... ~~1 
 
_____ 1 
 
_ 
 
I 
 
1 
 
I_- 
 
1 
 
::I:::' Ll. 
 
_______ L1 
 
J1 
 
_ 
 
- 
 
_______ 1L 
 
1 
 
.l 
 
_ 
 
S 4.0 
 
~ 
 
1 
 
I 
 
1 
 
1 
 
1 
 
, - - - -...... 3.5 
 
____j 
 
I 
 
: 
 
.L 
 
_ 
~ 
 
+ - - - - - + - - - - - - ----~ 
 
I 1 
 
I 
 
I 1 
 
I 1 
 
3.0 
 
-----I-----!------!-------I-------1 
 
L_9-_90 
 
9_0-_9~1 
 
91.92 
 
92-93 
 
93-94 
 
State Fiscal Years 
 
94-95 
 
95-98 
 
98-97 
 
In Charts 2 & 3 above, appropriations are from supplemmtal appropriation acts except that appropriationsfor the 96-97fiscalyear arefrom the 1997 original appropriation act. 
 
9 
 
 Object Classes to which Funds Appropriated 
 
DEPARTMENT OF EDUCATION LOTTERY FOR EDUCATION APPROPRIATIONS 
 
OBJECT CLASS TO WHICH APPROPRIATED 
Algebra Classrooms Alternative Programs Applied Technologv Labs 
Capital Outlay Computer Hard,vare/Soft\vare in Classrooms Distant Learning - Hardware and Cabling 
Distant Learning ~ Satellite Dishes Drug and Anti-Violence Education Educational Technology Centers 
Instructional Technology Learning Logic Sites Media Center and Library Equipment 
Model Technology Schools Next Generation Schools Postsecondary Options 
Pre-Kindergarten for 4-year-olds Safe Schools Grant Technology Installation 
Sub-Total Less: Lapsed Funds 
Total - Department of Education 
 
Three Year TOTALS 
 
Fiscal Year 1993-1994 
 
Fiscal Year 1994-1995 
 
Fiscal Year 1995-1996 
 
753,000 S 13,575,400 13,600,000 
 
753,000 
 
8,575,400 S 13,600,000 
 
5,000,000 
 
73,355,934 33,087,500 14,138,078 
 
33,087,500 14,138,078 
 
61.405,934 
 
11,950,000 
 
4,221,839 2,025,000 3,036,400 
 
1,025,000 1,236,400 
 
4,221,839 1,000,000 
900,000 
 
900,000 
 
31,238,000 3,024,000 
40,187,500 
 
924,000 38,027,500 
 
31,238,000 
 
2,100,000 2,160,000 
 
10,750,000 2,000,000 4,105,221 
292,341,845 24,000,000 18,990,000 
 
0 1,000,000 1.585,221 
36,346,000 20,000,000 
 
10,500,000 500,000 
1,200,000 
77,539,600 4',000,000 18,990,000 
 
250,000 500,000 1,320,000 
J 78.456,245 
 
S 584,429,717 (5,650,368) 
 
148,122,699 S 233,670,773 S 202,636,245 
 
(500,000) 
 
(3,281,899) 
 
(1,868,469) 
 
$ 578,779,349 S 147,622,699 
 
230,388,874 
 
200,767,776 
 
UNIVERSITY SYSTEM OF GEORGIA LOTTERY FOR EDUCATION APPROPRIATIONS 
 
OBJECT CLASS TO WHICH APPROPRIATED 
Capital Outlav Capital Outlay - Agriculturai Experiment Stations Capital Outlay - A1banv State College 
Capital Outlay - GPTC Capital Outlay - Georgia College Capital Otltlay - Georgia Military College 
Computer Labs - Vocational Instruction Distant Learning - Satellite Dishes Educational Equipment 
Equipnl.ent Equipment - GMC Equipment - GPTC 
Equipment - Vocational Instruction Equipment, Technology and Construction Trust Fund Georgia Research Alliance 
Per Diem, fees and Contracts Special funding Incentives Zoo Atlanta Resources Center 
Total - University System of Georgia 
 
Three Year TOTALS 
 
S 
 
5,000,000 
 
1,500,000 
 
16,639,611 
 
30,942,512 300,000 
3,500,000 
 
240,000 400,000 200,000 
 
1,000,000 238,000 
3,300,000 
 
2,000,000 55,021,347 64,047,653 
 
50,000 27,609,000 
2,500,000 
 
Fiscal Year 1993-1994 
2,021,512 
240,000 400,000 200,000 238,000 2,000,000 17,700,000 
 
214,488,123 S 22,799,512 
 
Fiscal Year 1994-1995 
13,000,000 28,921,000 
 
Fiscal Year 1995-19% 
5,000,000 1,500,000 3,639,611 
300,000 3,500,000 
 
1,000,000 3,300,000 
 
19,321,347 36,553,653 
50,000 15,095,000 2,500,000 
 
18,000,000 27,494,000 
12,514,000 
 
119,741,000 S _ _7_1,;.,9..;4_7,;.,6_1_1_ 
 
10 
 
 GEORGIA STUDENT FINANCE COMMISSION LOTTERY FOR EDUCATION APPROPRIATIONS 
 
OBIECT ClASS TO WHICH APPROPRIATED 
Georgia Military College Scholarships Hope Financial Aid Hope Financial Aid -Tuition 
Hope Financiai Aid - Books Hope Financial Aid - Fees LEPD Scholarship 
Promise Scholarships Teacher Scholarships Tuition Equalization Grants 
Sub-Total Less: Lapsed Funds 
Total .. Georgia Student Finance Commission 
 
Three Year TOTALS 
 
Fiscal Year 1993-1994 
 
Fiscal Year 1994-1995 
 
Fiscal Year 1995-1996 
 
$ 
 
576,000 
 
39,413,797 $ 
 
112,883,685 
 
34,296,240 20,976,198 
298,000 
 
$ 39,413,797 
 
240,000 $ 
39,061,941 12,000,000 
6,000,000 100,000 
 
336,000 
73,821,744 22,296,240 14,976,198 
198,000 
 
3,000,000 10,000,000 62,3 II ,982 
 
5,699,992 
 
20,000,000 
 
3,000,000 10,000,000 36,611,990 
 
$ 283,755,902 $ 45,113,789 $ 
 
(17,368,789) 
 
(17,368,789) 
 
77,401,941 $ 161,240,172 
 
0 
 
0 
 
$ 266,387,II3 $ 27,745,000 $ 77,40i,941 $ 161,240,172 
 
DEPARTMENT OF TECHNICAL AND ADULT EDUCATION LOTTERY FOR EDUCATION APPROPRIATIONS 
 
OBIECT ClASS TO WHICH APPROPRIATED 
 
Capital Outlay - Adult Literacy 
 
$ 
 
Capital Outlay - Computer Labs 
 
Capital Outiay - Technical Institute Satellite Facilities 
 
Computer Hardware and SoftWare Computer Laboratories & Satellite Dishes - Adult Literacy Distant Learning - Satellite Dishes 
 
Equipment - Area Schools Equipment - State Schools Equipment - Technical Institutes 
 
Repairs and Renovations Special Education Equipment 
 
Three Year TOTALS 
3,480,000 $ 2,544,000 52,388,133 
2,818,000 2,000,000 
439,000 
2,000,000 14,500,000 21,288,003 
7,000,000 200,000 
 
Fiscal Year 1993-1994 
3,480,000 2,544,000 
$ 2,818,000 
439,000 2,000,000 14,500,000 
200,000 
 
Fiscal Year 1994-1995 
20,014,673 $ 1,000,000 
14,402,750 7,000,000 
 
Fiscal Year 1995-1996 
32,373,460 1,000,000 
6,885,253 
 
Total Technical and Adult Education 
 
$ 108,657,136 $ 25,981,000 $ 42,417,423 $ 40,258,713 
 
OFFICE OF THE GOVERNOR LOTTERY FOR EDUCATION APPROPRIATIONS 
 
OBIECT ClASS TO WHICH APPROPRIATED Technology Grants Total - Office of the Governor 
 
Three Year TOTALS 
 
Fiscal Year 1993-1994 
 
Fiscal Year 1994-1995 
 
Fiscal Year 1995-1996 
 
$ 
 
2,000,000 $ 
 
-'0'- $ 
 
2,000,000 $ 
 
-'0'- 
 
$ 
 
2,000,000 $ 
 
o$ 
 
2,000,000 $ 
 
0_ 
 
11 
 
 Terms Used in this Report 
Administrative Expenses - Those operating expenses such as salaries and benefits of employees, rents and utilities, professional fees, depreciation and other similar expenses. 
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). 
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 State Treasury 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 (all revenue derived from the sale of lottery tickets plus all other money derived from lottery operations) less operating expenses of the Georgia Lottery Corporation. Net proceeds are required by law to be transferred from the Georgia Lottery Corporation to the State Treasury (Office of Treasury and Fiscal Services). 
Object Class - A term used in appropriation acts of the General Assembly to denote categories or classifications of expenditures for which funds are appropriated to be expended. 
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 report purposes, operating expenses are broken down into two sub categories: administrative expenses and retailing expenses. 
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 - The total financial activity of the Georgia Lottery Corporation, plus financial activity of the State Treasury related to Lottery funds, plus financial activity of State agencies appropriated Lottery for Education funds for specific purposes. 
Total Income - All income generated by the Georgia Lottery Corporation plus all interest earned at the State Treasury. 
12