Where the money goes
In August 2005, Gov. Mike Easley signed into law the North Carolina
State Lottery Act (H. 1023) and the 2005 Appropriations Act (S. 622)
which enacted the North Carolina Education Lottery. View Legislation
(PDF).
Under the lottery legislation,
at least 35 percent of total proceeds of the North Carolina Education
Lottery go to education programs. The overall use of each lottery
dollar as assigned in the lottery legislation is broken down below:

The breakdown of the net proceeds to education flow as follows:
- 5 percent goes to
the Education Lottery Reserve Fund to be used when lottery proceeds
fall short of
target. The Reserve Fund may not exceed $50 million. - 50 percent of the
total remainder shall be used for reduction of class size ratios
in early grades to 18 children per teacher and for prekindergarten
programs for at-risk four year olds who would not otherwise be
served in high-quality settings. - 40 percent of the
total remainder shall be used for school construction. Roughly
65 percent of this total shall be distributed to each county based
on total school enrollment. The remaining 35 percent of this total
shall be distributed to each county with average effective county
property tax rates above the state average based on total school
enrollment. - 10 percent of the
total remainder shall be used for college scholarships for students
who qualify for the federal Pell Grant. These scholarships can
be used at North Carolina public and private universities and
community colleges.

