The Georgia Lottery: selected summary financial information from inception (November 2, 1992) through fiscal year ended June 30, 1997

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The Georgia Lottery

Selected Summary Financial Information from
Inception (November 2,.1992) Through Fiscal Year Ended June 30, 1997

Claude 1. 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 Seven 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
Report prepared by the Financial Audit Operations Division
Ronald A. Mesimer, Director

CLAUDE L. VICKERS
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
March 23, 1998

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, 1997. 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 staterp.ents.
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 generally 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 intentionalry lift blank.)

Introduction & Bacl<ground

Purpose of Report
Constitutional Amendment Proposed
Proper Use of Lottery funds Defined
Voters Approve Lottery
First Lottery Ticket Sales

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 1997 fiscal year which occurred on June 30, 1997. This report is not a detailed study of the lottery nor is it an audit or review of the lottery program.
In 1991 the General Assembly of Georgia proposed an amendment to Georgia's Constitution, which if approved by the citizens, would provide for a State Lottery. In 1992 the General Assembly passed legislation that set forth how the lottery would operate, if approved, 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 such net proceeds shall be used to supplement, not supplant, existing resources for educational purposes and programs."
The proposed amendment appeared on the general election ballot in November 1992 and was approved by over 52% of those voting thereby providing the authority for the Governor to start a lottery operation in Georgia. The Georgia Lottery Corporation was then established, a Chief Executive Officer was hired and the Lottery began operations.
The first lottery tickets were offered for sale on June 29, 1993 and consisted of two instant scratch-off games. In the two days of the 1993 state fiscal year, net tickets sales were 18.6 million dollars. In each of the four succeeding fiscal years, tickets sales have exceeded one

LOTTERY TICKET SALES BY STATE FISCAL YEAR

1,750,000,000 ~

---.,

~ 1,500,000,000 fti ; ~ 1.250.000,000
,~ 1.000,000,000 'I-
750.000,000

500,000,000

1993-1994

1994-1995

1995-1996

State Fiscal Years

1996-1997

billion dollars and have increased each year. The Georgia Lottery Corporation offers a variety of lottery tickets for sale and include instant ticket sales and on-line sales for Cash 3, Lotto Georgia, Fantasy Five, Quick Cash, The Big Game, and Cash 4. The Georgia Lottery Corporation did offer Georgia's Powerball for a period of time but ended Powerball ticket sales in August 1996.

1

Introduction & Bacl<ground

How Financial Information Aggregated
"The Georgia Lottery" Defined

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
(Note: The Office of School Readiness, which has responsibility jar administering the voluntary pre-kindergarten program, receives its appropriation as a part of the Department oj Education budget.)

2

Sources of Information Modifications of Financial Data
Definition of Terms Used in Report

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 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 5.6 billion dollars in just over 4 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 ($22,312,000) 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 earn interest ($41,668,099) 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 ($3,731,027) 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, 1997, prizes amounted to over 51 percent of lottery ticket sales (50.6% 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. (In fiscal year 1995 and prior fiscal years, this percentage only had to equal at least 30 percent of lottery proceeds.) Net proceeds are required to be transferred to the State Treasury quarterly. From inception to June 30, 1997, the Lottery Corporation transferred $1,987,737,000 to the State Treasury in net lottery proceeds. This amounts to just under 35 percent (34.95%) of lottery proceeds.
Two reserves, as required by Georgia Laws, are maintained 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 scholarships 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, 1997

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

$ 5,651,490,000 63,980,099 13,508,000,
$ 5,728,978,099

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, 1997 Office of Treasury and Fiscal Services Shortfall Reserve Subaccount Scholarship Shortfall Reserve Subaccount Unreserved Funds Available

$ 2,900,466,000

710,053,360 89,055,000 $ 3,699,574,360

$ 927,011,129 427,505,274 292,992,123 200,622,643 2,000,000
$ 1,850,131,169

(22,638,744)

1,827,492,425

$ 5,527,066,785

$

54,323,390

77,718,586

69,869,338

201,911,314

$ 5,728,978,099

5

Utilization of Lottery Income

Categories of Utilization of Lottery Income
6

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, 1997. In the chart below, these three categories are further broken down into eight 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, HOPE Financial Aid, and Capital Outlay, the largest programs, are shown individually. All other lottery funded programs have been combined into one category; and
3. Funds Remaining at June 30 1997 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

Capital Outlay

All Other Lottery Funded Programs

November 2,1992 through June 30, 1997

Unexpended Lottery Balances & Reserves

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, 1997.

Top Seven Lottery Appropriations

Top Seven Lottery Appropriations

The following list identifies the top seven programs, as defined by budget object classes, to which appropriations have been made by the General Assembly from the Lottery for Education account since inception:
1. Pre-IGndergarten for 4-year-olds - $497,324,130 - 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 - $318,560,094 - 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 provide financial aid earned solely on academic achievement, and cover the cost of tuition, mandatory fees and provide a book allowance.
3. Capital Outlay - $311,727,912 - 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. Equipment - $126,759,611 - Various object classes specifically designating equipment in the object class. The largest appropriations and their respective object classes are $60,147,161 for "Equipment - Technical Institutes" and $40,187,500 for "Media Center and Library EqUipment".
5. Tuition Equalization Grants - $99,637,369 - These are $3,000 grants per academic year made to Georgia residents who are full-time students at private colleges and universities within Georgia and are in addition to HOPE Financial Aid.
6. Georgia Research Alliance - $99,496,689 - This alliance, a 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, and 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 authorized institution and do not flow through the Alliance.
7. Equipment, Technology and Construction Trust Fund - $ 84,226,311 - 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.
These seven programs account for over 83% of Lottery for Education appropriations.
7

Education Appropriations as a Percentage of Total Appropriations

Uses of Lottery Funds
Education Purposes Defined
Non-Lottery Education Appropriations Increasing

Each state with a lottery 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 8 state fiscal years plus the current fiscal year (1998). This period covers 4 fiscal years (1990 - 1993) prior to lottery operations and 5 fiscal years (1994 - 1998) 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

Education appropriations as a percentage of total appropriations in both the 1997 amended appropriation act and the 1998 original appropriation act are greater than any of the preceding 7 fiscal years. These percentages do not include Lottery for Education appropriations or appropriations for debt service.

Chart 1

._-----,

PERCENTAGE OF STATE FUNDS

'I

APPROPRIATED FOR EDUCATION BY FISCAL YEAR

(excluding Lottery Funds and Appropriations for Debt Service)

56% ,--------,----,--~_,___-,------,----,----,

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152 89-90
r

90-91

91-92

92-93

93-94 State Fiscal Years

' 94-95

95-96

96-97

97-96

In Chart 1, percentages of appropriations for each year arefrom amended appropriation acts with the exception that percentagesfor the 97-98 fiscal year arefrom the 1998 original appropriation act.

8

Growth in Total State Appropriations
Growth in Education Appropriations Out Paces Non-Education Appropriations

This increased 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 11.4 billion dollars in the 1998 fiscal year.

Chart 2

TOTAL STATE FUNDS APPROPRIATED BY FISCAL YEAR

_ - State Appropriations lncuding lotteI)' Funds

(Excluding Appropriations for Debt Service)

-

State Appropriations Excluding Lottery Funds

12 r-------,----,...-----,------,------.,-----,,------r------,

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89-90

90-91

91-92

92-93

93-94

94-95

State Fiscal Years

95-96

96-97

97-98

Over the 7 fiscal periods ending with fiscal year 1996, education and non-education appropriations have moved in a somewhat similar pattern. In fiscal years 1997 and 1998, education appropriations have grown at approximately the same rate as in previous years while non-education appropriations have tended not to grow but to level off.

Chart 3

EDUCATION AND NON-EDUCATION STATE FUNDS

_ - Education Appropriations Including Lottery Funds

APPROPRIATED BY FISCAL YEAR

-

Education Appropriations Excluding LotteJY Funds

(Excluding Appropriations for Debt Service)

______ Non-Education Appropriations

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89-90

90-91

91-92

92-93

93-94

94-95

State Fiscal Years

95-96

96-97

97-98

In Charts 2 & 3, appropriations for eachyear arefrom amended appropriation acts with the exception that appropriations for the 97-98fiscal year arefrom the 1998 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 Technology Labs
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 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

Four Year TOTALS

Fiscal Year 1993-1994

Fiscal Year 1994-1995

Fiscal Year 1995-1996

Fiscal Year 1996-1997

$

753,000 $

14,675,400

17,250,000

753,000 $

8,575,400 $ 13,600,000

5,000,000 $

1,100,000 3,650,000

180,064,819 33,087,500 27,104,660

33,087,500

61,405,934

11,950,000

106,708,885 27,104,660

14,138,078 4,471,839 2,025,000
3,036,400 2,736,950 31,238,000

14,138,078
1,025,000 1,236,400

4,221,839 1,000,000
900,000
31,238,000

900,000

250,000 2,736,950

3,024,000 40,187,500 10,750,000

924,000 38,027,500

10,500,000

2,100,000 2,160,000
250,000

2,000,000 6,054,221 497,324,130
24,000,000 18,990,000

1,000,000 1,585,221 36,346,000
20,000,000

500,000 1,200,000 77,539,600
4,000,000 18,990,000

500,000 1,320,000 178,456,245

1,949,000 204,982,285

$

932,911,497 $ 148,122,699 $ 233,670,773 $ 202,636,245 $ 348,481,780

(5,900,368)

(1,868,469)

{3,281 ,899)

(500,OOO)

(250,000)

$

927,011,129 $ 146,254,230 $ 230,388,874 $ 202,136,245 $ 348,231,780

DEPARTMENT OF TECHNICAL AND ADULT EDUCATION LOTTERY FOR EDUCATION APPROPRIATIONS

OBJECT CLASS TO WHICH APPROPRIATED

Assistive Technology Grants

$

Capital Outlay - Adutt Literacy

Capital Outlay - Computer Labs

Capital Outlay - 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 - Technicallnslitutes Repairs and Renovations Special Education Equipment

Total - Technical and Adult Education

$

FourYear TOTALS
500,000 3,480,000 $ 2,544,000
98,699,482 2,818,000 3,000,000
439,000 2,000,000 14,500,000
60,147,161 12,295,000
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

Fiscal Year 1996-1997
500,000
46,311,349 1,000,000
38,859,158 5,295,000

200,622,643 $

25,981,000 $

42,417,423 $

40,258,713 $

91,965,507

10

UNIVERSITY SYSTEM OF GEORGIA LOTTERY FOR EDUCATION APPROPRIATIONS

OBJECT CLASS TO WHICH APPROPRIATED

Capijal Outlay

$

Capital Outlay - Agricuttural Experiment Stations

Capital Outlay - Albany State College

Capital Outlay - GPTC Capital Outlay - Georgia College Capital Outlay - Georgia Milijary College

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

Educational Equipment Equipment Equipment - GMC

Equipment - GPTC Equipment - Vocational instruction Equipment, Technology and Construction Trust Fund

Georgia Public Telecommunications Commission Georgia Research Alliance Mercer University Grant - Equipment

Per Diem, Fees and Contracts Special Funding Incentives Zoo Atlanta Resources Center

Total - University System of Georgia

$

Four Year TOTALS
5,000,000 1,500,000 16,639,611
30,942,512 $ 300,000
3,500,000
2,000,000 240,000 400,000
200,000 1,000,000
238,000
3,300,000 2,000,000 84,226,311
1,500,000 99,496,689
250,000
50,000 37,709,000 2,500,000

Fiscal Year 1993-1994
$ 2,021,512
240,000 400,000 200,000 238,000
2,000,000 17,700,000

Fiscal Year 1994-1995
$ 13,000,000 28,921,000
1,000,000 3,300,000 19,321,347 36,553,653
50,000 15,095,000 2,500,000

Fiscal Year 1995-1996
5,000,000 1,500,000 3,639,611
300,000 3,500,000
$
18,000,000 27,494,000
12,514,000

Fiscal Year
1996-199,7
2,000,000
29,204,964 1,500,000
35,449,036 250,000
10,100,000

292,992,123 $

22,799,512 $ 119,741,000 $

71,947,611 $

78,504,000

GEORGIA STUDENT FINANCE COMMISSION LOTTERY FOR EDUCATION APPROPRIATIONS

OBJECT CLASS TO WHICH APPROPRIATED
Georgia Military College Scholarships Hope Financial Aid Hope Financial Aid -Tuition
Hope Financial Aid - Books Hope Financial Aid - Fees LEPD Scholarship
Promise Scholarships Teacher Scholarships Tuition Equalization Grants
Sub-Total Less: Lapsed Funds

Four Year TOTALS

Fiscal Year 1993-1994

Fiscal Year 1994-1995

Fiscal Year 1995-1996

Fiscal Year 1996-1997

$

1,143,000

$

240,000 $

336,000 $

567,000

39,413,797 $

39,413,797

188,097,469

39,061,941

73,821,744

75,213,784

55,574,047 35,474,781
533,600

12,000,000 6,000,000
100,000

22,296,240 14,976,198
198,000

21,277,807 14,498,583
235,600

5,000,000 20,000,000 99,637,369

5,699,992

20,000,000

3,000,000 10,000,000 36,611,990

2,000,000 10,000,000 37,325,387

$

444,874,063 $

45,113,789 $

77,401,941 $ 161,240,172 $ 161,118,161

(17 ,368,789)

(17,368,789)

0

0

0

Total - Georgia Student Finance Commission $

427,505,274 $

27,745,000 $

77,401,941 $ 161,240,172 $ 161,118,161

In addition to the appropriations to the agencies shown on this and the previous page, an appropriation of $2,000,000 was made for Technology Grants in the 1994-1995 fiscal year to the Office of the Governor.

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.
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