At a glance: Proposition 1C

What would it do?

•Allow borrowing up to $5 billion from future lottery profits to help close the deficit.

•Allow bigger lottery payouts and more marketing to attract more play and more revenue.

•End payments to schools from lottery receipts.

•Direct about $1 billion from the general fund to schools to replace the lost lottery money. The first year, that would be in addition to the Proposition 98 funding guarantee for schools; in subsequent years it would be part of that guaranteed funding.

What is the objective?

•To reduce the current budget deficit by up to $5 billion.

What does it cost taxpayers?

•Nothing directly.

What's the effect on the general fund? On the deficit?

•The current deficit would be reduced by $5 billion. Effects on the general fund are difficult to predict. If lottery changes produce more revenue, the debt could be paid back with money left over for the general fund; if not, the general fund could be reduced due to debt payments. Education funding would probably grow faster than with the current lottery payments, possibly reducing the general fund and adding to future deficits.

Who's for it? Gov. Arnold Schwarzenegger, legislative leaders, California Chamber of Commerce, California Teachers Association, California State Sheriffs' Association.

Who's against it? The California Republican Party.

Interesting tidbit: 1C allows the Legislature to borrow again against future lottery profits at any time.