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Are local schools benefiting from the N.C. Education Lottery?

Chelsea Kellner

Many places statewide are reaping the rewards.

Net proceeds to education from the state lottery (about 35 percent of all lottery dollars, as specified by the State Lottery Act) are already strictly earmarked for specific purposes when they’re collected, according to the N.C. Education Lottery Web site. Ninety-five percent goes to education, with the other five percent stored in the Education Lottery Reserve Fund as a fallback in case lottery proceeds fall short of target. That fund can’t grow larger than $50 million.

The state’s Office of State Budget and Management distributes the rest of the money. Fifty percent is used for reduction of class size ratios to 18 children per teacher in early grades, and for pre-K programs for at-risk 4-year-olds. Another forty percent goes to school construction, which is distrubted according to total school enrollment per county and average effective county property tax rates above the state average based on school enrollment. The remaining ten percent is used for federal Pell Grant college scholarships that can be used at North Carolina public and private universities and community colleges.

Locally, New Hanover County Schools received a little more than $5.5 million in the 2008 fiscal year, according to charts on the lottery Web site. Brunswick County Schools got just under $2.9 million in 2008, and Pender County Schools a little over $1.6 million.

Here’s a local breakdown:

New Hanover County Schools has received a total of $4,293,937 in lottery revenue.

The projects funded with lottery money in 2008-09 were:

* replacing the gym floor at Roland-Grise Middle School,

* seclusion rooms at seven schools,

* covering 2007-08 debt service on 2005 bonds,

* structural repairs to Lakeside High School,

* electrical upgrades to Laney and Hoggard high schools,

* replacing the HVAC system in the Hoggard High School band room,

* replacing doors and frames at Howe Early Childhood Education Center,

* stage floor repairs at New Hanover High School,

* building replacement at the Snipes School of Arts and Design, the largest project, which received $2,617,100 in lottery funds.

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5 Responses to “ Are local schools benefiting from the N.C. Education Lottery?”

  1. On July 3, 2009 at 1:15 pm Dixie Dobyns wrote:

    The question was phrased about the present status of lottery money benefitting local schools. Your answer should at least mention how Gov. Perdue raided this money in March 2009 and has not even promised to return it!
    To read more, go to:

  2. On July 12, 2009 at 9:19 pm Ben McCoy wrote:

    The answer starts by stating 35% of all lottery dollars go to education – I don’t see anything about where the other 65% goes – is it all simply wrapped up in payouts? Somehow I doubt it…

  3. On August 12, 2009 at 9:41 am Pamela Walker wrote:

    To respond to Ben McCoy’s comment: About 58% does go to prize payouts. Historically lotteries that have returned higher percentages to prizes are able to return higher dollar amounts to beneficiaries.

    7% goes to retailer commissions (NC business owners).
    Approximately 4% is for lottery operations, which includes problem gambling education efforts and advertising).

    In addition, the state has collected $16.4 million in taxes on prizes and over $1.5 million in debt setoff, which includes monies collected for unpaid child support, college loans and state hospital medical bills.

  4. On January 18, 2014 at 6:52 am shane wrote:

    Is there automatic and legitimate copyright for the content on a site?

  5. On January 22, 2014 at 1:12 pm Si Cantwell wrote:

    All of the content of StarNews Media sites such as StarNewsOnline.com, MyReporter.com, PortCityFoodies.com and other sites is copyright-protected.

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