Editorial: Stop diverting Lottery funds from promised education enhancements

Wednesday, March 4, 2020 -- Think back 15 years ago, as the contentious debate over enactment of the lottery reached its crescendo. Republican legislators were strident in near uniform opposition. Senators, including now top leader Phil Berger, warned of empty promises from backers that the lottery money would be dedicated to enhancing and expanding public education, not merely another source to meet ongoing obligations. As it turned out it was those who offered the direst of warnings who fulfilled their own prophesies.

Posted 10:00 a.m. Mar 4, 2020 — Updated 5:00 p.m. Mar 5, 2020

CBC Editorial: Wednesday, March 4, 2020; Editorial #8516

The following is the opinion of Capitol Broadcasting Company.

Think back 15 years ago, as the contentious debate over enactment of the lottery reached its crescendo. Republican legislators were strident in near uniform opposition. Senators, including now top leader Phil Berger, warned of empty promises from backers that the lottery money would be dedicated to enhancing and expanding public education, not merely another source to meet ongoing obligations. As it turned out it was those who offered the direst of warnings who would fulfill their own prophesies.

In response back then it was the lottery’s chief advocate, Democratic Gov. Mike Easley, who pledged he would “not recommend, nor sign, legislation that reduces the state’s (non-lottery) spending for education.” Lottery funding, Easley said, “will make sure that our progress in education on class-size reduction and academic pre-K for 4-year-olds is sustainable and paid for. It will help address school construction challenges and make college more affordable for needy students.”

Easley and his successor Gov. Bev Perdue – who as lieutenant governor and Senate President cast the tie-breaking vote that enacted the lottery – did keep their pledge. But Berger and his GOP followers plundered the lottery coffers as the hefty corporate tax cuts they enacted left less money for ongoing public school requirements as well as other spending needs.

In the state Education Lottery’s first full year (FY2007-2008), 40 percent of the money distributed went to school construction; 26 percent to class-size reduction; 24 percent to pre-K education and 10 percent to scholarships.

In the last fiscal year, almost two-thirds of the money distributed by the lottery funds ongoing school expenses. Fifty-seven percent goes to pay non-instructional support staff and 6 percent for student transportation. Just 19 percent is now available for school construction, 12 percent for pre-k education and 6 percent for scholarships.

Public school funding over the last decade has failed to even keep up with inflation. The $9.44 billion the state is now spending (2018-19 budget), when considering inflation, is $570 million LESS than spending levels a decade ago (2008-09 -$8.19 billion in actual dollars, $10.05 billion adjusted for inflation).

But damage is being done. Class-size reductions are not appropriately funded; pre-K education funding still falls way short of need and demand; school systems throughout the state are behind in both financing construction of much-needed new schools as well as updating or renovating current facilities. Promises of increased funding for scholarships have been neglected.

As was starkly noted in the recent Leandro report issued by Superior Court Judge David Lee, North Carolina is “further away from meeting its constitutional obligation to provide every child with the opportunity for a sound basic education than it was when the Supreme Court of North Carolina issued the Leandro decision” 25 years ago.

That is in the past. There’s no sense in replaying it. The proper path forward, right now, is for the legislature and the governor to begin honest and open talks. Agree on a compromise budget, develop the first phase of implementing the Leandro consent order to begin meeting Judge Lee’s standards and find common ground on expanding Medicaid.

Finally, honor the pledge made about use of the lottery funds and be honest about it.

Voters know when they are being misled. It is time to get this done.

NOTE: Information on public school spending for the 2018-2019 and 2008-2009 budgets was updated to reflect figures in the N.C. Department of Public Instructions "Highlights of the North Carolina Public School Budget," Feb. 2019 report.

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