Section II - Proposed 1996-1997 Revenues and Expenditures
In September 1996, the Board of Trustees adopted its 1996/97 Lottery Revenue Budget. Projected revenue was comprised of an estimated Beginning Balance of $9.3 million, new Receipts projected to be $26 million, System Interest Earnings of $1.2 million and setting aside a Systemwide Reserve of $7.4 million. The reserve serves as a cushion for economic uncertainties and cash flow variations due to fluctuations in lottery receipts. The table below illustrates the projected revenues for 1996/97.
|Table 4. 1996/97 Projected Revenues|
|Beginning Balance, Estimated||$9,300,000|
|Total Available Revenue||$36,500,000|
|Less Systemwide Reserve||-7,400,000|
|Available for Allocation||$29,100,000|
Planned expenditures for 1996/97 total $29.1 million as indicated in Table 5, below. This budget level represents a decrease from the 1995/96 budget of $35.9 million or nearly 19 percent. This is primarily due to providing campuses a one-time lump-sum revenue allocation of $7.8 million in 1995/96 from unallocated revenue remaining at the end of fiscal year 1994/95. Additionally, the CSU's traditional conservative approach to budgeting provided only a modest increase in 1996/97 over the projected level of receipts of $25.1 million in 1995/96. The CSU expects that its lottery generated revenue will level off during the 1996/97 fiscal year at $26 million due to the decreased revenue resulting from discontinuing the state's Keno game and the prohibition of selling lottery scratcher tickets from vending machines. The CSU is also anticipating receiving approximately $1.2 million from the State's Surplus Money Investment Fund (SMIF).
Planned program expenditures for 1996/97 are displayed in table 5, below. The planned expenditures of $29.1 million match expected revenues shown above. Program budgets remain the same as the 1995/96 lottery budget except for Campus-Based programs which decreased by $7.8 million and is attributed to the one-time lump-sum revenue allocation mentioned above.
|Table 5. 1996/97 Planned Expenditures|
|Program||Fiscal Year 1996/97|
|Access & Academic Development||$4,604,000|
|CSU Scholarship Program for Future Scholars||440,000|
|Forgivable Loan/Doctoral Incentive Program||3,525,000|
|California Pre-Doctoral Program||573,000|
|CSU Summer Arts Program||1,100,000|