Principles

All determinations of lottery revenue usage, whether by campus Presidents, the Chancellor, or the Board of Trustees, will employ the following principles:

1. Creation of Endowment Accounts

The creation and/or maintenance of campus lottery endowment accounts may not occur. Lottery funds allocated to campuses are governed by state law and CSU lottery policy. Lottery funds allocated to campuses should be used for the purposes outlined in the lottery budget.

2. Program Expenditures

a. Funds should be allocated to a select group of instructional activities to achieve maximum impact in enhancing instruction. This means that lottery revenue should be used to "supplement" instruction beyond the expected level of state support and should not be used to replace state funding of budget.

b. Certain instructional activities should be improved and enhanced on a systemwide basis.

c. A portion of the funds should be allocated to the campuses to be used for campus specific needs, consistent with the criteria described above.

d. Great care should be exercised to insure that lottery revenue usage is widely acknowledged as a significant enhancement of the instructional program and is clearly consistent with the intent of the California State Lottery Act of 1984.

e. Representatives of the faculty, students, and staff should be involved in the campus development of specific expenditure plans for Campus-Based Programs.

3. Fund Management

Lottery revenue collection, accounting, disbursement, budgeting, allocation, expenditure, and reporting should be managed separately from state funds. However, the procedures adopted by the California State University will be the same as those existing for General Fund and Special Fund financial management. Once allocated to campuses, lottery funds will remain at the campus level until expended.


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