Schools Gambling on Lottery’s Help to Stay Afloat

Although the California Lottery was intended to provide supplemental funds for public schools, most South Bay school officials say budgets are so tight this year that they have to use the money simply to keep schools running.

Lottery funds, which are based on ticket sales, will finance only one new program this year in the South Bay, officials said. The Lennox Elementary School District is beginning a teacher development program with part of its lottery funds.

Keeping From Drowning

“They are used just to support existing programs, not to expand them,” said Carleen Vose, director of accounting for the Palos Verdes Unified School District. “We use (the funds) just to keep from drowning.”

Some districts--such as Manhattan Beach Elementary and the El Segundo, Los Angeles and Torrance unified districts--are using lottery money for salaries, which some officials say is risky because the funds fluctuate according to ticket sales.

“You take your chances,” said Helen Sellers, accounting director for the Redondo Beach Elementary district. “You don’t want to budget the money and then find out you don’t have it.”

In most South Bay school districts, the lottery funds budgeted this year are slightly less than last year’s total. In the districts where lottery funds have increased slightly, officials are buying new computers, computer software, playground equipment, books and supplies.

Last year the California Lottery raised a record $2.1 billion, $750 million of which went to public schools, lottery officials said. In most South Bay districts, lottery funds make up about 3% of the school district’s budget.

Depending on a formula that takes into account district size and average daily student attendance, school districts are getting $100 to $130 per student this year, school officials said. The only restriction on the use of lottery money is that it not be used to fund research, new buildings or the purchase of real estate.

The legislation that permitted the lottery to begin three years ago states that net revenues “shall not be used as substitute funds but rather shall supplement” state aid to schools. By law, at least 34% of the proceeds from lottery sales must go to schools.

Yet school officials, including state Schools Supt. Bill Honig, contend that regular state aid is insufficient and that many schools must use lottery funds to make ends meet.

‘Very Misleading’

The lottery money “gives the public the idea that our financial problems are solved,” said Bob Church, superintendent of business services for Centinela Valley Union High School District. “It is very misleading.”

Kay Conrad, spokeswoman for the South Bay Union High School District, said: “School officials were worried from the start that the Legislature would reduce our budget, taking into account the lottery money.”

Officials attribute the dip in lottery revenue this year to a decline in ticket sales compared to last year, when the Lotto 6/49 game was relatively new. They also said declining enrollment in many schools has resulted in lower lottery funds.

For example, the Palos Verdes Unified district this year has less in lottery funds, primarily because of a continued decline in enrollment. Last year, the district received $1,247,881 from the lottery. This year it expects $1,095,000. The number of students in the district has declined from 17,500 to 9,500 since 1973.

Using lottery funds for salaries is risky, said Donald Riley, director of accounting for the El Segundo district, “but we have no choice. We are committed to a certain salary schedule.” The district has budgeted about 85% of its $182,000 in lottery funds toward maintaining teacher salaries.

Manhattan Beach Elementary has committed almost half of its $257,240 in lottery funds toward hiring a full-time teacher, a part-time art teacher and a part-time music teacher, said Pete Schiff, the district’s business manager. Much of the rest is going toward maintaining the salaries of computer and reading aides, he said.

“I don’t think this is risky,” Schiff said. The positions are not essential to the basic education of the students, he said. “We can get out of this (commitment) if we need to, but I hope we don’t.”

Los Angeles Unified, which expects to receive $79 million, will use practically all of it for teacher salaries, said a district spokeswoman. The funds are way up from last year, when the district received $51 million, because of increasing enrollment.

Two years ago, when lottery sales were higher, the Inglewood Unified School District used its lottery funds to give teachers a 10% raise. This year, the district is expected to receive $867,500, all of which will go toward maintaining that raise, said Kermet Dixson, the district’s acting business manager.

“It’s not money you can count on,” said Dixson, who agreed that using lottery funds for salaries is risky. But like other districts, Inglewood had little choice, he said.

Used for Extras

In the few South Bay districts where enrollment is up, lottery funds have indeed been used for extras.

Teachers in Lennox are benefiting from the new development program this year, thanks to lottery money. The program, which will cost about $80,000, will give new teachers instructional guidance and supervision by experienced teachers.

Supt. Kenneth Moffett said the program helps new teachers prepare to run a class, but he noted that if funds decline, the program can be cut without harm to the education of the students.

In the Lawndale Elementary district, which is budgeted to receive $512,375, about $20,000 more than last year, lottery funds are being used to purchase new computers and software, textbooks, and school supplies. No funds will go toward teachers’ salaries, said John Vinke, the district’s acting assistant superintendent.

The Wiseburn Elementary district, which will receive $154,000, up $7,000 from last year, will use its lottery funds for playground equipment, computer software and continuation of a drug education program run by the Los Angeles County Sheriff’s Department.

The Hawthorne Elementary district, which expects to receive $450,000, intends to use the money for maintaining the salaries of instructional aides in such programs as bilingual education. It will also go toward replacing “40- to 50-year-old equipment,” said Al Hughes, the district’s assistant superintendent for business.

SOUTH BAY SCHOOLS’ SHARE OF LOTTERY FUNDS School District: Centinela Valley Union High 1987 Lottery Funds: $869,494 Expected 1988 Funds: $875,000 (Includes funds for adult education and regional occupation center) Anticipated Major Use: Replace instructional equipment School District: El Camino Community College 1987 Lottery Funds: $1,733,146 Expected 1988 Funds: $1,790,000 Anticipated Major Use: Continuation of campuswide programs School District: El Segundo Unified 1987 Lottery Funds: $230,000 Expected 1988 Funds: $182,000 Anticipated Major Use: 85% to salaries and fringe benefits School District: Hawthorne Elementary 1987 Lottery Funds: $450,000 Expected 1988 Funds: $450,000 Anticipated Major Use: Maintain salaries of instructional aides School District: Hermosa Beach Elementary 1987 Lottery Funds: $60,000 Expected 1988 Funds: $83,000 Anticipated Major Use: Teacher training programs, conferences and consultants School District: Inglewood Unified 1987 Lottery Funds: $2,000,000 Expected 1988 Funds: $1,867,500 Anticipated Major Use: Maintain a 10% raise for teachers School District: Lennox Elementary 1987 Lottery Funds: $540,000 Expected 1988 Funds: $600,000 Anticipated Major Use: Textbooks, pay off special education program debt School District: Los Angeles Unified 1987 Lottery Funds: $51,000,000 Expected 1988 Funds: $79,000,000 Anticipated Major Use: Teachers’ salaries School District: Manhattan Beach Elementary 1987 Lottery Funds: $270,000 Expected 1988 Funds: $257,240 Anticipated Major Use: Two teachers positions; computer aides School District: Palos Verdes Unified 1987 Lottery Funds: $1,247,881 Expected 1988 Funds: $1,095,000 Anticipated Major Use: Continuation of special programs School District: Redondo Beach Elementary 1987 Lottery Funds: $470,000 Expected 1988 Funds: $403,000 Anticipated Major Use: General use, maintaining programs School District: South Bay Unified 1987 Lottery Funds: $722,802 Expected 1988 Funds: $627,200 Anticipated Major Use: “Day-to-day operations” School District: Torrance Unified 1987 Lottery Funds: $2,764,000 Expected 1988 Funds: $2,678,000 Anticipated Major Use: Salaries and supplies School District: Wisburn Elementary 1987 Lottery Funds: $147,000 Expected 1988 Funds: $154,000 Anticipated Major Use: Playground equipment, drug education program, reading aides and computers