The California State Lottery Act of 1984 states:  “…all funds allocated from the California State Lottery Education Fund shall be used exclusively for the education of pupils and students and no funds shall be spent for acquisition of real property, construction of facilities, financing of research or any other non-instructional purpose.” 

All expenditures of funds must be approved by an authorized individual from the campus’ delegation of signature authority. General Guidelines for Lottery Funded Expenditures: 

• The activity funded must represent a bona fide educational and instructional experience that contributes to the education of a students, or results in the development of materials to be used with students, or leads to the development of a program or course. 

• As a general rule, lottery funding restrictions are even more limiting than the regular state operating funds.

• Lottery funds may not be used to pay faculty salaries for classroom instruction.

• Lottery funds may not be used to finance increases in the rate of compensation paid to existing staff; thus, stipends and honoraria are not permissible.

• Lottery funds may not be used to purchase gift cards, gas, and wine.

• Lottery funds may not be used to pay for faculty overloads performed during the academic instructional period.  However, existing faculty may work a summer period under a personal services contract.  Timely submission of payroll documents is required.

• Special consultant contracts must be approved prior to the first day of work and must be signed by an individual from the campus’ delegated authority list.  Timely submission of payroll documents is required.

• Expenditure of any funds, including lottery funds, which are used for faculty development activities, must be in accordance with the collective bargaining agreement, which includes a specific list of development activities.

• Lottery funds should be used to augment and supplement state-funded budget programs so that lottery revenue is not used to replace or supplant current or prospective state funding.

• Lottery funds may be used to pay for part-time instructors when such instructors are hired as replacement faculty for faculty members working for a CSU lottery designated program.  Timely submission of payroll documents is required.

• Lottery funds may be used to pay students: 

  • when such students are working for a CSU lottery designated program;
  • when it enhances the instructional or educational experience of the student.

Supplementary Guidelines for the Teacher Recruitment Project (TRP) Expenditure:

In March of 2006 supplementary guidelines for expenditures were issued from the CSU Chancellor’s Office which further defined the expenditure uses for teacher recruitment activities.  See Academic Affairs Coded Memo-2006-07.pdf

In general, these lottery funds must be used to focus on math and science teacher recruitment. Expenditures should be used in support of locally developed activities to attract students from environments in which teaching has not been a common career goal. 

• Activity-related expenditures may include broad spectrum recruitment, admission, and completion of teaching preparation programs, within the scope of expenditure guidelines of the overall lottery spending restrictions. 
• Travel must be explicitly related to TRP goals. 
• Supplies purchases must be directly related to participant services. 
• TRP lottery funds may not be used to fund conference related expenses, including travel. 
• TRP lottery funds may not be used to purchase equipment.