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How are record-breaking lottery funds spent in Sacramento schools?

Mega Millions record prizes mean more money for public schools
Mega Millions record prizes mean more money for public schools 03:48

SACRAMENTO — The Mega Millions is breaking records and it means more money in the pocket of public education. As we see more historic highs, it means a lucky lotto winner isn't the only one cashing in.

"Tickets for Mega Millions are $2 and Californians should feel comfortable that about 80 cents of every Mega Millions ticket sold in California, is going right into the pot of money for schools," said Carolyn Becker with the California Lottery. "The California Lottery has raised more than $1.5 billion for Sacramento County schools alone."

Becker also detailed that how and where the money is spent when allocated to districts is up to local leaders.

"It's the local decision makers who know most about the need in their district or their county," Becker said. "It translates into a drop in the proverbial school budget bucket, so to speak, but we do hear from teachers and educators and principals all the time how worthy the funding is."

Those who are appreciative of the budget include the Robla Elementary School District. They use their allocated half a million dollars on a number of things including funding their school libraries. The district's Chief Business Official, Gerardo Castillo, says 100% of their elementary library campuses are thanks to the funding from the lottery.

"The lottery is making an impact for the school districts. It's not something we rely on but it's needed," Castillo said. "It's still supplemental. It's only about 1.3% of our budget."

The allocation is based on lottery earnings for the year, school size, and student attendance. Districts can decide how they use their restricted and unrestricted funds. The union for Sacramento City Unified School District has been a vocal critic of the district's use of funds.

"The average teacher in Sac City certainly could not say where that money is or that they've seen it," said Nikki Milevsky, the president of the Sacramento City Teacher Association. "It is somewhat difficult to track it through a district's budget even for those who pay close attention to a district's budget."

We reached out to Sacramento City Unified for a breakdown of where the funds are being used and received the following statement:

"Lottery funding is an often misunderstood issue for public school districts. Sac City Unified received approximately $8.25 million for 2022-23 thanks to funding from the California Lottery. While certainly not insignificant, that figure represents just under 1% of our total revenues for the school year. 

We do not propose a budget that reflects itemized expenditures for those funds, but we can share that this money is spent in accordance with the allowable use per California Department of Education.

As an example, our Prop-20 restricted lottery funds (Budget Code R6300), which account for about 30% of the $8.25 million, were used in 22-23 to purchase various textbooks (math, psychology, AP economics, environmental science books, etc) for school sites throughout the district this year.

Our Non-Prop 20 unrestricted lottery funds (Budget Code R1100) are spent on teacher salaries and benefits.

For additional context about the restrictions we must follow for spending lottery revenue see below:

https://www.scusd.edu/sites/main/files/file-attachments/bp_3220.1_-_lottery_funds_1.pdf?1342484118

The Governing Board intends to use lottery funds for supplemental and nonrecurring expenditures which support educational programs and activities. In recognition of the fact that amounts received from the California State Lottery fluctuate from year to year, the Board shall not commit lottery funds for any purpose until they have been received. The Board shall establish funding priorities and approve all allocations within the parameters of law. Lottery funds allocated for the purchase of instructional materials pursuant to Government Code 8880.4 (Proposition 20, March 2000 ballot initiative) shall be expended on instructional materials as defined in Education Code 60010. "Instructional materials" means all materials that are designed for use by students and their teachers as a learning resource to help students to acquire facts, skills, or opinions or to develop cognitive processes. Instructional materials may be printed or nonprinted, and may include textbooks, technology-based materials, other educational materials and tests. (Education Code 60010) (cf. 6161 - Equipment, Books and Materials) (cf. 6161.1 - Selection and Evaluation of Instructional Materials) Lottery funds shall not be used to acquire real estate, build school facilities, finance research, or serve any other noninstructional purpose, such as those related to school maintenance, business and administrative operations. The Superintendent or designee shall establish a separate account for the receipt and distribution of lottery funds. (Government Code 8880.5)"

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