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Breaking down the education lottery money

READ MORE: Breaking down the education lottery money
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There's still no state budget in Raleigh as lawmakers try to figure out how to pay for North Carolina's spending. One of the biggest issues has been education funding, and many are wondering where the billion dollars for education from the lottery has gone. According to state law, at least 50-percent of the money the lottery brings in goes to pay out prizes. No more than seven percent pays commissions to retailers who sell the tickets; no more than eight percent goes to lottery commission expenses. That leaves, by law, at least 35-percent for the state's Education Lottery Fund. Well... kinda. See, according to the State Lottery Commission, in the lottery's first full year, the payouts were pretty much on target. Thanks to a little rounding off, the numbers add up to 101-percent, but let's not get bogged down by the small stuff. Because of bigger prize payouts in year two, only 32-percent of lottery money went to education. So what about that mandate education get at least 35-percent? A lottery spokesperson points a loophole. The law says the payouts are made "to the extent practicable" meaning the education funds are the last chunk doled out. Based on numbers from the State Lottery Commission, including preliminary numbers for the fiscal year that just ended, the lottery has transferred more than $1 billion to educational programs since it started three years ago, or about one-third of its gross tickets sales. So a billion should pay for a lot, right? Well, state law mandates how it can be spent. Each year five percent goes into a reserve fund in case the lottery does not make as much money as expected, the same reserve fund Governor Perdue raided for $50 million earlier this year to help close the budget gap. From what's left over, 40-percent is devoted to the public school building capital fund, 10-percent is for college scholarships, and the other 50 percent is to limit class sizes in early grades and fund the More at Four program. So how much, if any of that money may be able to fill in cuts school districts are making, like staff and transportation? We'll find out tomorrow. North Carolina’s lottery appears to be more efficient than the Palmetto State. In its first two full years, the South Carolina lottery has transferred just 30-percent of the money its made to educational programs.

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As always the children are

As always the children are the last ones to recieve help. Even when the schools recieve money from the lottery, the powers that be, use it for everything but the children. We want our children to be the best but people in goverment seem to only be able to vocalize this sentiment but not actually do anything to promote it.

I don't know how many people

I don't know how many people are remembering, that when the lottery was first purposed, these are the exact same percentages as the purposal. The goal of the lottery was not to completly fund education. Just think where our education would be without that extra funding. That is what the lottery money is, extra.

...but it never STAYS as "extra"

Look at the history of lotteries and you will find a disturbing trend - general education funding by the legislature starts dropping because after all, "The lottery money is there." Then a few years down the road, the "new" wears off the lottery and sales start dropping. Pretty soon, the lottery money isn't that much. But the legislature will have allocated the money formerly dedicated to education for something else.... ...and you wind up with a badly underfunded education system. It has happened consistently, again and again across the nation and we are heading for the same pitfall....especially as long as Ali Bev and the 170 Thieves dip into the reserve fund whenever the mood strikes them.

Education money

Look people. This state Govt has hacked every money pile they can to pay for their "buddies" projects. The lottery is no different. Another area the media should consider is Court and LEO fines and penalties. Think about it. Out of 100 counties, how many Law enforcement officers are there. Out of all the civil penalties, speeding tickets, seat belt tickets, everything...where is this money going...?Not for new computers in the court system according to the latest news. It would be interesting to see what cut of each ticket goes to the school board...or to somebodies new ocean pier.....Madness.....

Note

The Governor "raided" the Reserve Fund. Wonder when that gets paid back?

Well..

it's kinda like when the Feds raided Social Security, and STILL DO, to pay for whatever they like...it DOESN'T GET PAID BACK... I hate to say this..but the STUPID VOTERS of this state DESERVE EVERY JOB LOSS, EVERY TAX INCREASE and EVERY BAD THING to happen to them for choosing UNWISELY in BOTH the state and federal elections!...PERIOD!

Yea, you're right, because

Yea, you're right, because in EVERY SINGLE ELECTION the other guy would have been fair and honest and would never let Anyone loose their job, make Any tax increase and Nothing bad would ever happen. Get real, the system is what it is, and anyone in a position of power can and will abuse it. We see it every election, in every city, in every state in America. We didn't elect a crook and let a savior get away, they are all crooks who act like saviors until they get elected. Its just the way it is.

I thougt the money was for

I thougt the money was for the schools and not leaders. there is other ways to help with money do not take away from the kids they did not create the budget problem

check out Georgia's success with the lottery

After 16 years of an "education lottery", check out the dismal state of Ga's education system.