North Carolina’s state lottery has reported increased sales, but an official audit shows that funding directed to public schools has declined, raising concerns among education advocates and lawmakers, according to WRAL News.
The audit, released this week, found that while lottery ticket sales and overall revenue climbed over the past fiscal year, the portion of funds allocated to education programs fell compared with previous years. The findings have renewed debate over how lottery proceeds are distributed and whether the system is meeting its promise of supporting public schools.
State officials said the drop in school funding was largely due to changes in how lottery revenue is calculated and distributed. A larger share of proceeds was reportedly used to cover operating costs, prize payouts, and transfers to other state obligations before education funding was determined. Critics argue that this structure undermines the lottery’s original purpose.
“The public is told that lottery sales directly support education,” said one education policy analyst. “When sales go up but schools receive less, it raises serious questions about transparency and accountability.”
According to the audit, several school districts received smaller allocations for classroom construction, teacher support, and educational programs despite rising consumer participation in lottery games. Education groups warned that reduced funding could strain already tight school budgets, particularly in rural and low-income areas.
Lottery officials defended the system, saying it operates within state law and that education funding fluctuates based on broader budget decisions made by the legislature. They emphasized that the lottery remains a significant contributor to education, even if year-to-year amounts vary.
The findings have prompted calls from some lawmakers for reforms to ensure a more predictable flow of lottery money to schools. Proposals under discussion include revising funding formulas, increasing oversight, and clearly labeling how lottery proceeds are ultimately spent.
The audit comes as North Carolina continues to face challenges in funding education, including teacher shortages, aging school infrastructure, and rising enrollment in some districts. Analysts say the report could influence future budget negotiations and fuel public pressure for changes to how lottery revenues are managed.
As debate grows, officials are expected to review the audit’s recommendations in the coming weeks, with education funding likely to remain a key issue in the state’s policy discussions.
