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Action Guide
March 7, 2000



Proposition 20 — State Lottery: Cardenas Textbook Act of 2000
Legislative Initiative Amendment


Proposition 20 changes the way a portion of the annual lottery revenues is distributed to public education. It amends the initiative statute which provides for at least 34% of the total annual state lottery revenues to benefit public education. Beginning in the 1998-99 fiscal year and for each year thereafter, one-half of the growth in the share allocated to public education will be earmarked for the purchase of instructional materials in K-12 schools and community colleges. The funds are distributed on the basis of an equal amount per unit of average daily attendance. The proposition would not change the way "base" lottery revenues are allocated to public education or the way the other half of the growth money is allocated.

How the proposition would work:

The proposition uses fiscal year 1997-98 as the "base year." In that year the state allocated $780 million in lottery money to public education. The proposition's impact in any year would depend on the growth in lottery funds since 1997-98. For example, the estimated 1999-00 allocationis $867 million. The proposition's formula would result in the following: $867 million - $780 million = $87 million growth. Fifty percent of that, or $43.5 million, would be dedicated to instructional materials. The remaining $823.5 would not be affected by the proposition.


California has operated the State Lottery since 1985, with 50% of the money returned to players as prizes, a maximum of 16% used for administration, and at least 34% allocated to public education. The amount allocated to education is distributed, based on student enrollment, to K-14 (K-12 public schools and community colleges), the California State University, the University of California and Hastings College of the Law, and to specific state departments thatprovide K-14education programs. Lottery revenues are now about $2.6 billion a year. The portion allocated to education can be used for any school expenses exceptbuying property, construction of facilities and financing research.

Local school districts are responsible for providing necessary services and materials, such as teachers, facilities and instructional materials, to educate children. Instructional materials are primarily textbooks and other reading materials, but also include items such as computer software, arts and crafts supplies, and maps. The state now provides schools almost $600 million a year (about $100 per student) that must be spent on instructional materials.


Signing the ballot argument for:
Signing the ballot argument against:
Tony Cardenas
California State Assemblymember 39th District

Nell Soto
California State Assemblymember 61st District

George R. House, Jr.
California State Assemblymember 25th District

Steve Baldwin
California State Assemblymember 17th District

The rebuttal to the supporters' arguments was signed by Wayne Johnson, President, California Teachers Association; Sandy Clifton, President, Association of California School Administrators; and Leslie DeMersseman, President, California School Boards Association.

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