THE CALIFORNIA STATE UNIVERSITY
Office of the Chancellor
400 Golden Shore Drive
Long Beach, California 90802-4275
(310) 951-4610

Code:  C 93-05

Date:  Feburary 10, 1993

To: Vice Presidents for Administration


From:  Mary N. Garretson
       Controller
       CSU Controller's Office

Subject:  Lottery Endowment Status Reports
This memorandum reports the status of the lottery endowment principal 
and interest accounts for the period July 1,1992 through December 
31,1992.  You will recall BA 92-24 reported the need to use lottery 
endowment  accounts to finance the costs of the Faculty Early Retirement 
Program.  Any funds not needed for this purpose were to be made 
available to the campuses as endowment interest.  The attached reports 
reflect the results of these decisions.

Lottery Endowment Principal Accounts (Attachment A)

Capital gains of $2,206,846.36 were achieved during the period by Merrill 
Lynch Asset Management (MLAM), the investment manager.  Campus 
decisions to use endowment principal for the Faculty Early Retirement 
Program reduced principal balances by $29,809,188.88.  The remaining 
balances of $3,026,028.67 were transferred to the endowment interest 
accounts, effective January 1, 1993.  This is the final report of endowment 
principal balances.

Lottery Endowment Interest Accounts (Attachment B)

SMIF (Surplus Money Investment Fund) interest earnings were $66,308.67 
and MLAM interest earnings were $1,668,493.56.  Campuses chose to use 
$357,535.00 of endowment interest for local priorities and $2,669,902.00  
for the Faculty Early Retirement Program.  The addition of the endowment 
principal balances at December 31, 1992 of $3,026,028.67 brought the 
total interest balances to $4,933,857.03 as of January 1, 1993.  

In summary, the lottery endowment principal accounts have been closed, 
effective December 31, 1992.  Lottery endowment accounts paid for 
$32,479,090.88 of Faculty Early Retirement Program costs during the 
period ($29,809,188.88 from principal accounts and $2,669,902.00 from 
interest accounts).  Lottery endowment interest balances of $4,933,857.03 
are available as of January 1, 1993. 

Please direct any questions concerning payments for the Faculty Early 
Retirement Program to Ms. Kathleen S. Bedard at (310) 985-2702.  If you 
have any other questions about this report, please contact Mr. Joseph R. 
Dunn at (310) 951-4610.   

MNG:vs:Lottery Endowment Status Reports

Attachments
Distribution: