The News & Record
Editorial - February 16, 2006
Lottery: Follow the
Money
Gov. Mike Easley gave his word
Tuesday about lottery revenue. It won't replace
money the state already spends for education.
Unfortunately, North Carolinians can't take the
governor's word for it.
His word cannot change the lottery law, which
doesn't say proceeds must add to school spending.
His word cannot command the legislature, which
decides how to allocate state money.
And his word cannot bind future governors, who may
give their word for entirely different priorities.
Easley's assurance, intended to calm the latest
concerns about the "Education Lottery," further
exposes its flaws. It was created on promises
without guarantees. Some supporters apparently
failed to notice.
The lottery law directs that net revenues -- income
after prizes and expenses -- go for three
education-related purposes: 50 percent to reduce
class sizes in early grades and provide preschool
programs for at-risk 4-year-olds; 40 percent for
school construction; and 10 percent for college
scholarships.
Nothing in the law prohibits legislators from using
lottery money to replace, or supplant, funds already
being spent in those areas. In fact, Easley now says
it was his plan all along to do that in the case of
class-size reductions and preschool programs,
currently supported by about $200 million in tax
money. Most North Carolinians probably missed that
part of the lottery discussion.
Nevertheless, the governor vows that the supplanted
$200 million will stay in the state's education
budget rather than disappear elsewhere -- as happens
in many other lottery states. For example, Easley
would like some of it to be used to lift teachers'
salaries to the national average, a worthy goal.
It might require sharp eyes to make sure it's used
as intended, however. One pair belongs to State
Auditor Les Merritt, who said he wants to devise an
accounting system to track education spending.
Dan Gerlach, the governor's budget director,
answered that no complicated accounting measures are
needed. It's only necessary to look at the total
amount of money spent for education to make sure
it's increasing.
Merritt's approach is better. Allocations for
schools already grow every year as enrollment rises,
more teachers are hired and other costs go up. How
can North Carolinians know whether spending will
increase by the amount it should once lottery
revenues are added? The answer is careful
watchfulness and timely reporting of all money
flowing in and out.
Promises are the currency of any lottery: promises
of easy money for players and governments alike. The
financially stressed single mother dreams of buying
a ticket to a better life and consoles herself with
the thought that losing helps pay for a better
education for her children. Elected officials dream
of new pots of money gained without having to tax
anyone.
The most basic promise of this lottery is simple: It
will put dollars into education that were not
previously available from any other source. Will the
promise be kept? It will require close scrutiny to
make sure. The governor's word isn't good enough.
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