Some Lawmakers Want Change in Lottery Distribution Formula
Under a proposed House bill, a school district's financial needs and attendance growth would be factored into whether it receives lottery proceeds.Posted — Updated
Forty percent of lottery profits are now set aside for school districts to help them with construction. Under House Bill 9 sponsored by Rep. Bruce Goforth, a school district's financial needs and attendance growth would be factored into the decision process.
Under the current system, 65 percent of lottery proceeds for schools is based on the size of the student body while 35 percent is distributed to districts based on residents who pay high property taxes.
According to the bill, 65 percent of lottery proceeds for schools would still be based on student body size, but the remaining 35 percent would be split in half with 17.5 percent going to low-wealth school systems and 17.5 percent going to school systems with high enrollment.
For example, Wake County, which currently gets $8 million in lottery proceeds, could get an additional $5.4 million under the proposed bill.
Some critics argue the calculation punishes fiscally sound county governments.