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McCrory's bid to shift lottery funds no game-changer for schools

Published: 2013-02-20 17:27:00
Updated: 2013-02-20 18:53:20

Gov. Pat McCrory's call to change how state lottery money is allocated won't have a measurable impact on North Carolina schools, observers said Wednesday.

In his State of the State address on Monday, McCrory called for legislation "to reallocate a portion of money away from the bloated, and frankly annoying, advertising and the large administrative costs of the lottery commission." He said the money could be better used to upgrade classroom technology statewide.

North Carolina Education Lottery officials counter that administrative costs are already half what state law allows. Also, the lottery spent $14.7 million to advertise its games in the fiscal year that ended last June, which officials said is less per capita than comparable states.

"Our fear would be that, if we were required to reduce ads, that it would reduce sales and money for education," lottery spokesman Van Denton said.

Ads and sales generally go hand in hand, Denton said.

Rep. Paul Stam, R-Wake, said he not only wants less spent on lottery ads, he wants the games portrayed in a less appealing way.

"Almost all of their advertising is false and deceptive," Stam said.

Beyond commercials, McCrory also hopes to change how lottery proceeds are spent. The $2.6 billion the lottery has raised for education since its inception is restricted to upgrading teacher pay, school construction, pre-kindergarten programs and college scholarships.

"There's a pot of money right now that can only be used on certain things. Why not let all of our districts use that money on technology and virtual learning?" the governor said during his State of the State address.

Companion bills were filed Wednesday in the House and Senate that would permit school districts to use lottery money for digital textbooks, school connectivity and other technology, as well as staff training to use the devices, until June 2016. After that, a district would need to demonstrate that the technology boosted student learning and receive State Board of Education permission to continue spending lottery money on new devices, according to House Bill 97 and Senate Bill 119.

"I'd like to give every dollar we give unrestricted, and let them make their money go as far as it will where they know it needs to go," said Sen. Jerry Tillman, R-Randolph.

State Superintendent of Public Instruction June Atkinson said she also wanted more funding for school technology, but she pointed out that the lottery generates only 4 percent of North Carolina's total budget for public schools.

"That amount of money would be just a drop in the bucket for the amount of money we really need," Atkinson said.

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45Strikes.... Take a look at the Movie "Inside Job". It will answer a most all you questions about the collapse of the banking industry.

I give you a clue.... most of the criminals are all retired with billion dollar severance packages or now in politics!

"Look at the leadership of the past five years and the democratic policies that started the financial mess. Those very stupid people that I mentioned earlier are the ones that all bought houses that they couldn't afford. The federal government forced banks to lend to them in the interest of "fairness". Then they had to turn around and bail out the banks." 45'Strikes

45.. You should go home tonight and rent the movie "Inside Job" and you fine just who is at fault for the banking crisis and who approved the policies to allow it to happen.

14 million lottery advertising money is 10 bucks per student in NC. That would be $20,000 a year for a high school to spend in their computer/tech departments.

The lottery gives about $700 per pupil on average, per year, I figure. But it all doesn't go into the classroom.

How much money flows out of Lenoir County's economy each year via the lottery, to Raleigh? More than goes back into that county with 25% unemployment and lots of poverty. They give it away willingly, and the state accepts it wantingly.

The Federal government does nothing, yet gets 25% of the winnings. That 25% leaves our state's economy.

The state pays out 64% of income, but the most numerous "winning" of that is breaking even, getting back the amount paid, which isn't winning.

The state uses $16 million (7.5%) for administrative costs, much of which goes to out of state contractors.

please....educate yourselves to where the Money does go and how much of it....below is the link, of course the two biggest School County's Wake and Mecklenberg receive the most

http://www.nc-educationlottery.org/beneficiary.aspx#

"" They are going in the opposite direction, following the democrats right now."

Are they? please show that to be the case....." Grand Union

Check the White House. Look at the leadership of the past five years and the democratic policies that started the financial mess. Those very stupid people that I mentioned earlier are the ones that all bought houses that they couldn't afford. The federal government forced banks to lend to them in the interest of "fairness". Then they had to turn around and bail out the banks.

" The Lottery is hugely profitable for the State and is a net revenue maker. I opposed it and still do on the basis that its just a stupidity tax but one can't deny its a very nice and purely voluntary revenue stream" Grand Union

I agree

"The Paris of the West!" I grew up there I saw first hand how corrupt democrats turned that city into a toilet.

Crumps Br0ther bbbbbbbaaaaaaahhhhhhhhhaaaaaaaaaa...That's your problem a Lions fan...BBBBBBAAAAAAAAAAHHHHHHHHAAAAAAAAA

what damage would that be? Grand Union

They lost, that should tell you right there people were not pleased with what they were doing. No specific examples are necessary. But if you want examples of liberal failure look no further than Detroit. Not even the libbiest of libs can spin or make enough excuses to cover or deflect what democrats did to that once great city, it used to be called "The Paris of the West!" I grew up there I saw first hand how corrupt democrats turned that city into a toilet.

" It is designed to fool stupid people while they build up another bloated government agency."

The Lottery is hugely profitable for the State and is a net revenue maker. I opposed it and still do on the basis that its just a stupidity tax but one can't deny its a very nice and purely voluntary revenue stream

" They are going in the opposite direction, following the democrats right now."

Are they? please show that to be the case.....

I wish they'd do away with the annoying "happy happy" ads for the Triangle toll roads...that would save money as well. I don't drive on it so why should I have to pay for the ads???

"Why call it an education lottery if only four percent goes to education. That is absolutely ridiculous. Someone is getting the money and it's not the schools. Does anyone know what the head of the lottery gets paid?" shm

It is designed to fool stupid people while they build up another bloated government agency. Forget about the percentage, they took as much money out of education on the back end as they put in with the lottery, it was nothing but a scam to begin with.

"Does anyone know what the head of the lottery gets paid?"

Last data I found was in 2007, they were paid $246,750. But I'm sure it went up since then.

"What can you do when, as you say, they "don't have the mental capacity to figure it out"???" atts1000

Just keep forking over the tax dollars to sustain them until maybe they develop some sense of pride and start to stand on their own two feet some day. They are going in the opposite direction, following the democrats right now.

Why call it an education lottery if only four percent goes to education. That is absolutely ridiculous. Someone is getting the money and it's not the schools. Does anyone know what the head of the lottery gets paid?

"they have fooled entire races of people that don't have the mental capacity to figure it out."

What can you do when, as you say, they "don't have the mental capacity to figure it out"???

"it has no real purpose other than to scan money from the weak and mathematically challenged so really who cares if it is not competitive? Better the profits go to the State than some rich louse in caymans." Grand Union

Thanks for backing up my earlier point, by the way.

"Yeah but you are just so smart :)" Grand Union

At least you finally got something right

Wake County schools spend about 3 million dollars a day. If they received all of the 14 million--it wouldnt last them a week. 14 million when compared to over a billion dollars is not even enough to be concerned about unless somone was putting it in their pocket.

" The lottery is just one of the many tools that liberals use to maintain and grow the permanent underclass that they so desperately need to stay in power. The poor fools keep voting for thier oppressors.It's not a bad strategy, they have fooled entire races of people that don't have the mental capacity to figure it out."

Yeah but you are just so smart :)

" At least, I hope, McCrory can undo some of the damage caused by the liberals."

what damage would that be?

"It amazes me how short-sighted our people are. Doesn't anyone have issue with an industry (gambling) with the state having a complete monopoly over it, regardless of where the funds go? You are an adult, don't you think you should have a say in not only if you gamble, but how? Don't you see that the competition will enhance the odds and experience for you? Legalize gambling in NC! Tax it just like any other industry and get the revenue that way."

Gambling has negative consequences that usually result in the State picking up the tab for so its a legitimate thing for the State to legislate. and it has no real purpose other than to scan money from the weak and mathematically challenged so really who cares if it is not competitive? Better the profits go to the State than some rich louse in caymans.

It amazes me how short-sighted our people are. Doesn't anyone have issue with an industry (gambling) with the state having a complete monopoly over it, regardless of where the funds go? You are an adult, don't you think you should have a say in not only if you gamble, but how? Don't you see that the competition will enhance the odds and experience for you? Legalize gambling in NC! Tax it just like any other industry and get the revenue that way.

I agree that the ads are annoying and useless, the lottery machines are in plain view in gas stations and grocery stores. I very rarely buy a scratch off ticket because I never, ever win and more annoying ads are not going to change that. At best I might win another ticket which loses.

"When the lottery reaches 200 million how about have 20 10 million dollar winners..."

That would happen if 20 people pick the correct numbers.

"The other guy is about to get a job that pays as much as the governor and is closer to his home...." farm

Good for him, I would rather he make millions and not be able to continue the destruction of the state that blondie was bent on. At least, I hope, McCrory can undo some of the damage caused by the liberals.

The lottery does nothing to help education. Anyone with half a brain would have known that was just a bunch of lies to begin with, as are most government run programs. The lottery is just one of the many tools that liberals use to maintain and grow the permanent underclass that they so desperately need to stay in power. The poor fools keep voting for thier oppressors.It's not a bad strategy, they have fooled entire races of people that don't have the mental capacity to figure it out.

""The lottery was suppose to add to eduction funding, not replace it so money could be spent elsewhere!"

And soooo many people bought that line! Politicians! aaarrrrggghhh!"

Yes, everyone was lied to by a bunch of corrupt politicians....go figure

""Was just talking about this recently. No reason to waste money on stupid lottery commercials."

Do you think adverts don't work?" Grand Union

Good job decoding that one for us. lol

"The other guy would have made a better Governor."

The other guy is about to get a job that pays as much as the governor and is closer to his home....

"Was just talking about this recently. No reason to waste money on stupid lottery commercials."

Do you think adverts don't work?

"The other guy would have made a better Governor."

Little doubt anymore about that.....

So now the Gov. thinks he is an expert in advertising too?

""The lottery was suppose to add to eduction funding, not replace it so money could be spent elsewhere!""

no, that was just marketing. It was said at the time that all it would do is displace other funding and that there would be no long term gain for education. The lottery is simply a tax on people who can't do math.

The other guy would have made a better Governor.

If they would like to raise more money for the lottery here is and idea.....

When the lottery reaches 200 million how about have 20 10 million dollar winners or 200 1 million dollar winners instead of just one or two winners splitting up a 200 to 500 million dollar pot.

I've seen this done in some other lotteries and the response from people is much larger because more people have a chance to win.

"The lottery was suppose to add to eduction funding, not replace it so money could be spent elsewhere!"

And soooo many people bought that line! Politicians! aaarrrrggghhh!

I'll admit. I'm impressed with what he's claiming to do. Now if he could only fix the DOT and that toll road nonsense.

Sounds like we are still looking for the magical technology that will make every kid no matter their ability an honor student. If parents don't care, homework is not done, discipline isn't delt with, no amount of technology will help. Digital textbooks, how long do you think they will last when some grade schooler starts taking them back and forth from school?

"Our fear would be that, if we were required to reduce ads, that it would reduce sales and money for education"

The ads are a bit much. Whenever you walk into a gas station many games are placed in full view of the register. For anyone that knows about "product placement"...its much more effective (I think) than television ads.

ANY restrictions should include that funds CAN'T be used for ANY Administrators salaries at ANY level, especially any salaries at the Central Office. They already gouge the taxpayers enough.

"The lottery was suppose to add to eduction funding, not replace it so money could be spent elsewhere!"

but we all knew that wasn't going to happen.

"administrative costs are already half what state law allows."

well guess it'll be half of that!

Was just talking about this recently. No reason to waste money on stupid lottery commercials.

"Pretty sure the original way the lottery was passed that all funding would be going towards school construction."

When the bill was passed with (then) Atty Gen Bev Perdue making the tie breaking vote late at night, it was stated that the funding should be used in this manner - "100 percent of the net proceeds of the North Carolina Education Lottery will go to education expenses, including reduced class size in early grades, academic prekindergarten programs, school construction, and scholarships for needy college and university students."

This just too funny. Folks, there is no such thing as "saving" money in the goverment. If that was the case, taxes wouldn't go up and fees (another tax) wouldn't be going up. Any "saved" money will find a home. Or waste depending on who gets it.

So I guess 14.6 million would not help. What do you expect the fat cat lottery seat warmers to say. Our new Gov. is going to find ways to cut and provide more funding for our schools instead of sitting back and dreaming about it as our last administration did.

The lottery is regressive. However, it is still the best chance for people to avoid unnecessary critiques that some add to wealth building and employment. One can join the Army and hope they live to retire ( a risk) and keep their nose clean and follow instructions and hope their efforts will move them up the ladder(a risk) or they can occasionally play the lottery (a higher risk) and avoid all artificial risks (sexism,ageism, racism, hidden agendas, politics etc). As a person with a Master's in finance and an Army Veteran, as commendable and desirable as education can be, the general employment market still does not know how to use education and most talent in the US is wasted due to this. Politicians can't really address this nor can they really change it. The system of work is nothing more than a lottery itself tilted by the political arena for immediate profits. Rep.Stam should have also added almost all of politics is equally as false and deceptive as lottery ads.

Pretty sure the original way the lottery was passed that all funding would be going towards school construction. As for advertising, who here has seen a lottery commercial and chosen to go buy a ticket based on that? You're either a lottery ticket buyer or you are not. Simple as that. There's no gambling competition here to really advertise against.

As for how the money is distributed...calculate lottery purchases across the state. Determine % of lottery tickets bought and revenue per county. Distribute monies to all 100 counties based on that percentage of input. Unless this is supposed to be a subsidization program for poorer counties...which oddly probably spends per capita more on the lottery than say Wake or Mecklenburg.

The lottery was suppose to add to eduction funding, not replace it so money could be spent elsewhere!"

Bev Perdue is somewhere laughing her head off at your post!

The advertisements are a ridiculous waste of money.....and putting a 'flyer' on a gas pump handle? wow...The reason there are so many 'new' scratch-off games being introduced, is because the odds are getting more and more favored to the state.... here's a novel idea..... collect Sales Tax on them!!

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