Lottery: 'Where does the money go?'

Monday, June 15, 2009
One reader had a sharp reaction to my Sunday column asking "What were they thinking?" She wanted to know: "Where does the money go?"

The column was about former Gov. Mike Easley and his arranging a job for his wife at N.C. State University, a process that has led to the resignation or firing of four people, including Mary Easley. The column mentioned problems related to the adoption of the state lottery in 2005.

The reader wrote:

One of the paragraphs in your "What were they thinking?" article in today's Observer really jumped at me.

"(The remarkable thing is that the N.C. Education Lottery, created in such sleazy fashion, has evidently been well-run and without the corruption that has marked N.C. government in the 21st century.)"

"IF it's been so well, run why are our schools in such dreadful financial condition? The supposed purpose of the lottery was to benefit the schools. And from the millions of dollars they advertise are waiting to be given away, when and where are the schools benefiting???? Seems to me that folks at the Observer are in a good place to start finding some answers. There is NO EXCUSE for teachers and programs to be getting terminated for lack of funds when the lottery is so full of money.
"I, for one, and probably lots of teachers, principals, parents, and students would be VERY interested in some sensible answers. Please tell us WHERE IS THE MONEY GOING???????"


It's a good question, and there's an easy answer. The N.C. Education Lottery Web site posts an annual report on where the money goes. Here's a link. The report shows that since inception, $725 million has gone to education; in 2008, $350 million went to education.

The money, by law, is split among school construction, college scholarships, class size reduction and programs for at-risk children.

I wasn't a supporter of the lottery and the way the legislature adopted it wasn't pretty, but my point in the column was that it appears to be well-run and is producing revenue for schools.