As the 20th Winter Olympics draw to a close, the phrase, “Let the games begin,” is slowly receding in our minds. Expect to hear it again soon, but this time with a far different meaning: On March 30th, scratch-off lottery tickets should hit stores around the state, introducing North Carolinians to unprecedented opportunities for “gaming.” But will the lottery meet with unqualified support? Not if recent developments questioning the lottery’s legality and distribution of resources have anything to do with it.
On February 13th, Wake County Superior Court Judge Henry Hight Jr. heard opening arguments in a lawsuit contending the lottery’s passage was unconstitutional. Specifically, plaintiffs argued that lottery legislation was not treated with the scrutiny and deliberation warranted by a “revenue” bill, thus violating provisions outlined in our state constitution. Judge Hight denied the plaintiff’s request for an injunction to stop work on the lottery, but he also declined to dismiss the case (to the dismay of lottery supporters). Stay tuned: a full hearing addressing the merits of the case is planned for March 20th.
Also last week, newspapers around the state – from Charlotte to Rocky Mount to Raleigh – carried stories exposing Easley’s plans for spending lottery proceeds. Easley intends to use about half of the lottery money to replace – not supplement – over $200 million in tax dollars that the state already spends on two education initiatives: class size reduction and pre-K programs. That’s news to many North Carolinians, who expected that an “education lottery” would actually add to existing funds. Some policymakers expressed little surprise at Easley’s plans, saying they had warned all along that proceeds might end up “supplanting” rather than “supplementing” education funding.
Governor Easley’s staff was quick to assure the public that educational dollars would increase in his spring budget proposal. Unfortunately, as an editorial in the Greensboro News & Record points out, Easley has little control over the state legislature’s allocation of dollars or even the language of the lottery law itself: “Easley’s assurance, intended to calm the latest concern about the ‘Education Lottery,’ further exposes its flaws. It was created on promises without guarantees.”
Supporters of public education in our state may also be surprised to learn that plans to allot lottery funds completely snub charter schools. Under the current distribution scheme, these innovative public schools do not receive any proceeds.
Fortunately, there is a better way to divide lottery revenue. Terry Stoops, Education Policy Analyst at the John Locke Foundation, proposes some sensible alternatives to the current distribution of lottery dollars. Instead of directing lottery proceeds to unproven programs like class-size reduction and pre-K programs (that already exist in the budget), Stoops suggests we use funds to meet critical needs. Lottery proceeds could be used to provide more construction money to offset bond debt incurred at the local level, potentially saving us from raising property taxes in many counties. Lottery revenue could also go to fund school construction cost-saving incentives – programs that reward school districts and administrators for finding innovative, low-cost solutions to facilities needs. Finally, lottery proceeds have the capacity to provide a reliable funding stream for new charter school construction; currently these public schools do not receive any state dollars for capital expenditures.
Clearly, the debate over the merits of a lottery will continue for some time. But if the lottery clears legal hurdles and moves forward, we must be prepared to push for a strategic use of revenue. Do we dare envision an “education lottery” that actually helps to ease our tax burden and improve our schools? That would make us lucky indeed.