Introduction
California State Lottery Modernization and Securitization

The budget package includes legislation, if approved by the voters, that will authorize the California State Lottery to adopt changes that will help to improve its financial performance, with the General Fund ultimately benefiting from this improved performance. In addition to capitalizing on this underperforming asset, the legislation will protect education funding by increasing the Proposition 98 minimum guarantee to offset the loss of lottery revenue to K-14 education, thereby giving schools a more stable and growing source of funds to replace the historically unreliable lottery revenues.

Also included is legislation that will authorize the securitization of a portion of future lottery revenues. The securitization proceeds will be deposited into a newly created Debt Retirement Fund and available for various purposes that will help offset future General Fund expenditures. The first $5 billion of securitized revenue is expected to be available in 2009-10.
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CHAPTER HIGHLIGHTS for Introduction Back to Top

 Budget Reform
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PRINTABLE BUDGET DOCUMENTS Back to Top
Enacted Budget Summary - Introduction (pdf * - 330K) -
Provides the entire Introduction Chapter in pdf format.