RALEIGH (AP) -- Now a year old, the North Carolina Education Lottery is meeting its goal of keeping residents from crossing the border to buy tickets.

But it's failing to reach financial expectations initially touted by lawmakers and Governor Easley.

The lottery has set aside $220 million in profits for state education programs since the first tickets were sold March 30, 2006.

Easley praised the games today for money to improve education that wouldn't be available otherwise.

But lottery ticket sales are below initial projections because of low prize payouts, particularly for scratch-off games.

Lottery executive director Tom Shaheen says that means education programs could get $350 million from the lottery in its first fiscal year. That's about $70 million less than expected.

However, North Carolina lottery players are reaping the rewards. Winning tickets have been sold in all 100 counties, and a Halifax County woman won a $74.5 million Powerball jackpot.

(Copyright 2007 by The Associated Press. All Rights Reserved.)