(1) each eligible school district shall receive a minimum lottery grant of fifteen dollars per pupil residing in the district and enrolled in grades kindergarten through twelve in public and nonpublic schools in the base year to be used for the expenditures made pursuant to section seven hundred one of the education law in the base year upon proof of such expenditures. Payment of such lottery grant to eligible school districts shall be made in accordance with the provisions of paragraph a of this subdivision; and

(2) each approved state supported school for the deaf and the blind shall receive ten dollars per enrolled pupil;

(2-a) each school district eligible to receive total foundation aid pursuant to section thirty-six hundred two of the education law shall receive a lottery grant in an amount equal to the product of the amount of the appropriation for the current year multiplied by the district's VLT ratio. The "VLT ratio" shall be equal to the quotient of the moneys apportioned for such district pursuant to section thirty-six hundred nine-a of the education law as set forth in the school aid computer listing produced by the commissioner in support of the enacted state budget for the current school year, divided by the sum of such moneys apportioned for all school districts as set forth in such school aid computer listing in support of the enacted state budget for the current school year. Moneys to be appropriated from the fund in any state fiscal year, commencing on and after April first, two thousand seven, for the purposes of providing aid pursuant to this subparagraph shall be apportioned and paid by the education department pursuant to section thirty-six hundred nine-f of the education law;

(3) those eligible school districts scheduled to receive the largest direct payments in June pursuant to clause (v) of subparagraph three of paragraph b of subdivision one of section thirty-six hundred nine-a of the education law shall be entitled to the June lottery aid payment, within the amount appropriated for such purpose; and

(4) each eligible school district shall be entitled to an additional lottery grant equal to the result of multiplying the district's total aidable foundation pupil units for the base year computed pursuant to paragraph g of subdivision two of section thirty-six hundred two of this act by: Base Grant x (1 + aid ratio) Where, the base grant shall equal the sum of the net total available moneys after making payments pursuant to subparagraphs (1), (2), (2-a) and (3) above, plus an amount from the general support for public schools-- general fund local assistance account equal to the June lottery payment, divided by the total aidable foundation pupil units of the state and where the Aid Ratio is equal to one minus the pupil wealth ratio of the district as such term is defined in section thirty-six hundred two of the education law. In no case shall a school district aid ratio exceed one (1) or be less than minus one (-1). c. In the event that aids, determined pursuant to paragraph b above, exceed the total funds available for distribution pursuant to this subdivision, then such aids shall be ratably reduced. In the event that funds remain undistributed after determination of the aids pursuant to paragraph b above, then such undistributed funds shall be applied so as to ratably increase such aids. Any reduction or increase in aids pursuant to the provisions of this paragraph shall be first assessed against or added to the aids determined pursuant to subparagraph three of paragraph b. d. Any moneys paid pursuant to this subdivision shall be subject to the limitations of paragraph a of subdivision eight of section thirty-six hundred two of the education law and shall be used only for operating expenses authorized by law and in accordance with regulations to be promulgated by the commissioner of education with the approval of the director of the budget. 5. Notwithstanding any inconsistent provision of this section or of any other provision of law, after provision for prizes, in the manner provided for in subdivision b of section sixteen hundred twelve of the tax law, there shall be transferred and paid into the winter sports education trust fund from total lottery revenues deposited in the state lottery fund to the credit solely of the winter sports physical education account within such fund, not otherwise transferred to the state lottery regular account in accordance with the provisions of this subdivision, the sum of not to exceed one hundred million dollars or such lesser amount as has been accumulated within such winter sports physical education account and has been so transferred and paid into such trust fund up to and including March thirty-first, nineteen hundred eighty, at which time no further transfers or payments shall be made into such fund other than for the purpose of completing the transfer and payments of moneys accumulated in the winter sports physical education account prior to such date. The amounts of aid to be paid for the purposes contained within paragraphs (i), (iii) and (iv) of subdivision three of this section pursuant to subdivision four of this section shall in no manner be limited or reduced as a result of a transfer of moneys from the winter sports physical education account to the winter sports education trust fund as hereinabove provided or as provided for in section four hundred ninety-five-a of article ten-C of the education law. During the state fiscal years commencing April first in the years nineteen hundred seventy-seven, nineteen hundred seventy-eight and nineteen hundred seventy-nine all moneys on deposit in the state lottery fund to the credit of the state lottery regular account pursuant to subdivision b of section sixteen hundred twelve of the tax law and subdivision two of this section shall be paid for the purposes of paragraphs (i), (iii) and (iv) of subdivision three of this section in the manner provided for in subdivision four of this section. Other than as hereinbelow provided, no moneys within the state lottery fund to the credit of the winter sports physical education account shall be transferred to the winter sports education trust fund in any of such years unless there has been paid from such state lottery fund from moneys in the state lottery regular account for the purposes of such paragraphs (i), (iii) and (iv) of subdivision three of this section in the manner provided for in subdivision four of this section, at least the following amounts for the enumerated years: state fiscal year minimum amount to be commencing April first: paid pursuant to subdivision four of this section; 1978 an amount equal to that paid in the state fiscal year commencing April first, nineteen hundred seventy-seven pursuant to subdivision four of this section plus six per centum; 1979 an amount equal to that paid in the state fiscal year commencing April first, nineteen hundred seventy-eight pursuant to subdivision four of this section plus six per centum. In the event that the moneys within the state lottery regular account in any state fiscal year contained within the preceding schedule are insufficient to make such minimum amount payments required within such schedule for such fiscal year then, upon the certified request of the director of the division of the lottery, the comptroller shall transfer from the winter sports physical education account to the state lottery regular account an amount, as contained in such request, not to exceed seventy-five per centum of the total amount of moneys credited to the winter sports physical education account for such state fiscal year. In the event that subsequent to such transfer the amount then contained in the state lottery regular account is insufficient to make the minimum amount payment so required in such schedule for such state fiscal year such total amount shall so be paid for the purposes of paragraphs (i), (iii) and (iv) of subdivision three of this section in the manner provided for in subdivision four of this section and shall constitute the total payment required for such purposes during such state fiscal year notwithstanding the provisions of such schedule. The amount so transferred shall in no event increase the amount to be paid pursuant to subdivision four of this section to an amount in excess of the minimum amount payments required to be made pursuant to such schedule. The transfer and payments into the winter sports education trust fund shall commence initially, on or before the twentieth day of the month of the applicable state fiscal year next succeeding the month in which the state lottery regular account has accumulated at least the minimum amount payments required to be paid during such year pursuant to subdivision four of this section and thereafter during such fiscal year, on or before the twentieth day of each succeeding month. 6. All moneys available in any fiscal year in such fund for the purposes specified in clauses (ii) and (iii) of subdivision three of this section shall be deposited not later than the last day of each month in the general fund to the credit of the state purposes fund or the local assistance fund or both in such percentages as may be determined by the director of the budget, to be used only for the purposes and in the manner specified in such clauses (ii) and (iii). 7. In no fiscal year shall the total amount paid from the fund for expenses of the lottery, exclusive of expenditures for machines or other capital equipment which the division of the lottery is authorized to purchase for the operation of the lottery, exceed an amount which, when added to any amount retained by lottery sales agents as compensation for their services, equals fifteen percent of the total amount for which lottery tickets are sold during such fiscal year. 8. All payments from the fund for expenses of the lottery, including expenses for personal service, shall be made on the audit and warrant of the comptroller on vouchers approved by the director of the division of the lottery.