Counties seek restoration and protection for lottery funding | Eastern North Carolina Now

For Immediate Release:

    North Carolina counties could permanently lose millions of dollars in school construction funding if a proposal in the Senate's budget plan becomes law. The state budget adopted by the Senate removed the statutory language that counties receive 40 percent of lottery proceeds each year for school capital needs.

    "Without this clear legislative intent, counties would be forced to compete every year with all other state general fund needs for a share of the lottery proceeds,' said NCACC Executive Director David F. Thompson. "The revenues from the education lottery now represent the only ongoing state support for public school construction. Taking away this revenue stream would require counties to either reduce other services or increase property taxes to pay for existing debt service."

    County Commissioners across the state are contacting their House members this week and urging them to protect the county share of lottery proceeds and to increase the appropriation for 2013-14.

    In addition to eliminating the designated county share, the Senate budget proposal reduced the county appropriation for 2013-14 for the fourth consecutive year and permanently eliminated the county share of the corporate income tax (ADM Fund). Counties are supposed to receive 40 percent of lottery proceeds, which would amount to approximately $190 million for 2013-14. The Senate budget appropriates to counties $100 million.

    Over the past four years, counties have lost nearly half a billion dollars in state support for public school construction (see chart), all while the state's school population continues to grow faster than most of the rest of the nation. The state has shifted more than $200 million of county lottery proceeds to other educational uses while also diverting the county share of the corporate income tax that is dedicated to school construction needs.

    Restoring lottery funds for school construction to the statutory requirement was voted by N.C. counties as the No. 2 legislative priority for 2013-14 biennium.

    Lottery/Corporate Income Tax Appropriations since 2009-10 (in millions)

Year  •  Lottery $ received  •  40%  •  Difference  •  ADM loss  •  Total loss
2009-10  •  $147.2  •  $147.2  •  $0.0  •  $60.5  •  $60.5
2010-11  •  $113.7 •  $176.5  •  $62.8  •  $64.5  •  $127.3
2011-12  •  $100.0  •  $170.0  •  $70.0  •  $72.1  •  $142.1
2012-13  •  $100.0  •  $176.5  •  $76.5  •  $74.8  •  $151.3
Totals  •  $460.9  •  $670.2  •  $209.3  •  $271.9  •  $481.2

    For more information, contact Todd McGee, NCACC Public Relations Director, at (919) 715-7336 or todd.mcgee@ncacc.org.

    About the NCACC: The North Carolina Association of County Commissioners (NCACC) is the official voice of all 100 counties on issues being considered by the General Assembly, Congress and federal and state agencies. Founded in 1908, the Association provides expertise to counties in the areas of lobbying, fiscal andlegal research, communications, intergovernmental relations, information technology, field visits and risk management services.

    Contact: Todd McGee,

     (919) 715-7336  •  todd.mcgee@ncacc.org