Serving Boone, Blowing Rock, Banner Elk, and other towns of the North Carolina High Country
Founded 05-05-05

No Scheduled Use for Education Lottery Funds for Watauga County

Story by Ron Fitzwater

In October 2006 schools from around the state began to receive money from the state’s Education Lottery Fund. Signed into law in August 2005 by Governor Mike Easley, the North Carolina Lottery Act, in conjunction with the 2005 Appropriations Act, generates funds to be used statewide for school capital projects and class size reduction. The funds are distributed quarterly—in October, January, April and June—and two quarters of funding have been deposited into the Public School Building Capital Fund/Lottery Proceeds.

During the first year of the lottery 50 percent of proceeds go to prizes, 35 percent to education, 8 percent to lottery administration and 7 percent to retailers. Governor Mike Easley’s 2007-09 budget calls for changes in these percentages.

But for now, of the 35 percent of the lottery proceeds that go to education programs, 5 percent off the top goes to the Education Lottery Reserve Fund to be used if lottery proceeds fall short of the target amount. Of the remainder, 50 percent is to be used to reduce class size ratios, 40 percent is to be used for school construction projects and 10 percent is to be used for college scholarships. The funding formula allocates money to counties based on school enrollment and property taxes.

The money does not go automatically into a particular county’s school building fund. Funds are maintained in Raleigh until county boards of commissioners request them by filing an application for specific projects.

Watauga County Finance Director Doris Isaacs said, “The County’s current balance for the October and January quarters is $142,551. Originally estimated at $355,530, the expected total county lottery proceeds for FY 2006-07 is $268,739.

“General discussion of the use of Watauga County’s lottery proceeds has indicated the intent to use the funds for partial funding of the Board of Education’s 10-year capital improvement plan which the school system is currently updating,” Isaacs continued. However, Marshall Ashcraft of the Watauga County Schools said it is “safe to say there is no firm use of the funds scheduled.”