Lottery Money Not Restricted To Education

There's a wide public perception that the state lottery pays for the entire education system.

The reality is that it only covers a small part, actually 3.6% of the last education budget.

You might also be surprised to know that the money from the lottery that's supposed to go to educational programs isn't guaranteed to get there.

The truth is politicians can play the lottery.

"Something exciting is happening in North Carolina," proclaims a television commercial for the North Carolina Education Lottery.

North Carolina's lottery might have never reached its third birthday if it wasn't for one person.

Bev Perdue cast the tie-breaking vote in the state senate almost four years ago back when she was lieutenant governor.

The lottery was born.

Supporters said it reaffirmed the state's commitment to education.

Now, Governor Perdue held firm to that commitment during her first State of the State address in March.

"Education is the engine that propels North Carolina's future. It cannot and it will not be sacrificed," Governor Bev Perdue said on March 9, 2009.

But, only a couple of weeks earlier, education was sacrificed.

The governor pulled more than $87 million in lottery profits to help the state pay its other bills.

Perdue now concedes education isn't being spared in this recession.

"Cuts are being made by principals and superintendents across the state,” Perdue said during our interview for this story on July 13, 2009. “Local revenues are down. I mean this is pervasive. It doesn't stop in Washington. It doesn't stop in Raleigh. And, so every community feels this impact."

Governor Perdue acted within her authority to move lottery money to the state's general fund.

The current lottery law doesn't mandate that education always gets the money.

Lottery executive director Tom Shaheen defends the governor.

"There's a difference between always and what's done in an emergency to keep the state of North Carolina functioning,” said North Carolina Education Lottery Executive Director Tom Shaheen. “That was one time and all the money before and all the money since has gone into the programs."

Nevertheless, actions like this feed lottery critics who say it demonstrates a flawed system.

"It's sort of another indication that money is just being moved around,” said Chris Fitzsimon, executive director for NC Policy Watch. “I think we're being a little naïve to believe that lottery dollars go to schools and they're dollars that would not have gone to those schools if we didn't have the lottery."

Governor Perdue says she supports a constitutional amendment that would restrict lottery money to education only.

That's if the economy's better next year.

What about the impact the lottery's making on its educational targets?

Maintaining smaller class sizes is one of those targets.

The lottery's own website says the goal is 18 children per teacher in early grades: that's k-through three.

The lottery's public relations machine says one thing.

"Class sizes have been reduced," claims a lottery infomercial posted on its website.

But, the latest numbers available from the Department of Public Instruction tell a different story.

Beaufort County hits or beats the mark except for second grade.

Onslow and Pitt County Schools miss the mark across the board.

The statewide average also falls short.

In fact, the state average is right where it was when the lottery started.

"It certainly makes it clear that the lottery's not gonna solve those problems," Fitzsimon said.

"Certainly the goal was to make it better,” Shaheen said. “If you look at the state of the economy right now and the budget if, where would it be if the lottery wasn't funding it?"

There's no way to know that answer, but education budgets have always fluctuated from year to year with or without the lottery.

Like it or not, don't expect the lottery to be going anywhere.

And, as we've shown here, its expectations are not guaranteed.

Besides the goal to reduce class sizes, lottery money targeted for education also goes to More at Four pre-school programs, college scholarships and school construction.

Beaufort County says the construction money from the lottery has helped that school district.

However, the district says that only amounts to less than 1% of its annual budget.